World e-Com Blog|EN
Online export

changes in cross-boarder commerce due to the new VAT legislation

There are two main changes that will affect the VAT threshold and tax filing for non-EU businesses:

1.) All orders shipped to the EU are now subject to VAT. Until July 1, 2021, when buyers in the EU purchase goods sent from a non-EU country with a total value of less than €22, they are exempt from paying VAT. As of July 1, 2021, customers will be required to pay VAT on all purchases up to €150. Import VAT and duties will still apply to orders above this threshold. Merchants sending goods to buyers from outside the EU may decide to charge VAT on orders under 150 euros to simplify the purchase and delivery process for their customers. If sellers choose not to charge VAT on exports to the EU of less than €150, customers will be charged when the carrier delivers the goods.

2.) One-stop-shop (IOSS) import filing. Merchants who choose to charge VAT on orders under €150 must use the recently introduced Import OSS (IOSS) to file a single monthly VAT return for all low value EU exports. Non-EU traders who prefer to use IOSS may need to designate a VAT intermediary.

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