What is the European union (EU) VAT De Minimis regulatory change? | eBay Global Shipping

What is the European union (EU) VAT De Minimis regulatory change?

Submitted by admin on Sat, 10/02/2021 - 12:09

Effective July 1st 2021, all commercial goods imported into the EU will be subject to VAT. All imports of goods into the EU will require a formal customs declaration. A new VAT collection scheme has been introduced for online sellers, known as Import One-Stop Shop (“IOSS”) – only applicable for B2C transactions of goods of value up to 150 EUR. To ensure smooth customs clearance at destination, it is key that you provide accurate invoice data, such as goods descriptions, itemized values, HS code. Generic description such as “samples” or “spare parts” are not accepted. In IOSS, VAT is collected at the moment of purchase (and online seller then pays the VAT collected to the local tax authority in EU via monthly VAT return).