As if Brexit did not bring enough challenges in 2021, the EU rules on E-commerce underwent a major transformation as of 1 July 2021. Many UK-businesses have adapted to the new reality as per 1 July, while at the same time however, a significant number of UK-businesses seem to not have readied themselves yet and hope to maintain the status quo.
EU E-Commerce 2021 has ‘changed the game’ however and the consequence of not making the necessary arrangements is that your EU-customers are surprised at their home door when the mailman does not only deliver the long awaited parcel but also requests for the immediate payment of the import duties, VAT and clearing fees. Not beneficial to your customer satisfaction. If you don’t appreciate your customers, someone else will. Find out how we can help you getting up to speed with EU Ecommerce 2021.
Import scheme for non-EU goods
Under the new rules, the VAT-exemption for goods in small consignments of a value of up to EUR 22 is abolished. This means that in principle all imports are subject to import VAT, unless the import scheme is applied. Under the import scheme goods up to a value of EUR 150 are exempt from import VAT. The supply to the consumer followed by the (exempt) import will be declared in an IOSS filing (import-OSS system). In IOSS all supplies of non-EU goods are declared in one EU-Memberstate of your choosing. Many UK-businesses opt for the Netherlands as the gateway to Europe. We provide the fiscal representation services you require for the application of IOSS and take over your EU VAT compliance obligations. This means you can focus on growing your business and we handle your EU-VAT compliance.
Your marketing plan is not as important as how you plan to invest in the happiness of your customers.
Visser & Visser UK Desk is a business unit of Visser & Visser: your international business partner in Tax, Accounting, Audit, HR, Payroll and IT solutions.
Do you have questions, or are you interested in how we can help you improve your European supply chain? Please contact our expert below.