Whether and how the new European Union Value Added Tax (EU VAT) reform impacts your business depends on the value of the goods you sell, whether you sell to businesses or consumers, and whether you use online marketplaces.
Goods with a value up to €22 are no longer exempt from VAT. This impacts all businesses importing into the EU, whether you’re shipping to consumers or businesses. These low-value goods require formal customs clearance and are subject to VAT. You should consider how this impacts the price and margin of these products.
The Import One-Stop Shop (IOSS) is the electronic portal that businesses can use to settle VAT in the EU for goods valued up to €150 and comply with their VAT ecommerce obligations. To get an IOSS or OSS number, you must contact your selling channels to request this information.