These new changes mean that ALL commercial goods imported to the EU will be subject to VAT – regardless of value.
So, what does this mean? If you ship to the EU, it means you will need to:
- Collect VAT at the checkout based on the consumer’s location
- Declare VAT for customs clearance
- Submit VAT returns
You might be thinking that this just makes shipping to the EU even more complex than it already is.
BUT there are ways you can make it easier, here’s how…
1. Import One Stop Shop (IOSS)
The government is introducing an electronic portal where you can register to get a single VAT IOSS ID number that applies to distance sales in all 27 EU countries. This will enable you to collect, declare and account for VAT and pay your bill directly to the EU Tax Authorities via a periodic tax return – for goods up to the value of €150.
This will simplify the collection, declaration, and payment of VAT for distance sales to EU customers and potentially avoid additional carrier fees for VAT clearance.
What are the key benefits of the new IOSS?
- Ease and simplicity: You’ll get a single EU IOSS VAT ID number that will cover VAT registration in all of the 27 EU member states
- A positive experience for customers: Customers will have complete VAT cost transparency at the moment of purchase
- Improved cash flow: VAT payments can be made monthly directly to EU tax authorities
What else do you need to know? Read GFS’s FAQs for more information.
2. Duty Deferment Account
A Duty Deferment Account allows you to postpone payment of customs duty, excise duty and VAT by up to 46 days so you can pay fees for all shipments once a month by Direct Debit rather than per consignment at the point of import.
This will help shipments clear customs quickly, so parcels can be delivered faster, and it will also save you time and money and help you better manage cash flow.
You can apply for a Duty Deferment Account here.
3. One Stop Shop Delivery and Returns
As well as the Import One Stop Shop for VAT, GFS can provide everything you need for delivery and returns!
From finding the best and most cost-effective international shipping services, to technology that calculates Duties & Taxes, generates electronic Customs documents and manages paperless global returns – you can get everything you need in one place!
GFS International eCommerce Service
Access the widest network of global carriers through just one dynamic delivery service.
Using super-smart routing technology, we route each parcel to the best performing, cost-effective carrier service. So, all you need to do is choose from 1 of 3 service level options – Express, Plus and Economy – and we do the rest!
Find out more here.
A complete toolkit of technology solutions that simplifies the complexity of new EU customs processes to take away the pain of cross-border delivery.
- Offers customers a wide range of flexible delivery options at the checkout
- Automatically calculate Duties & Taxes and supports DDU (Deliver Duty Unpaid) and DDP (Deliver Duty Paid) delivery options
- Multi-carrier parcel labelling with automatically generated tracking
- With Paperless Trade for electronic customs documentation
GFS Global Returns:
- Paperless returns portal with 200+ returns services, 320,000 drop points and 35 languages
- Electronic customs declarations for inbound duty relief