Dear Bestdealer Sourcing Users,
As of 1 July 2021, there are changes to VAT for online sales from businesses worldwide to consumers in the European
Union (EU). The EU will formally implement the EU one-stop import declaration (I-OSS) at 00:00 EU Time on July 1, 2021.
Effective from 00:00 on July 1, 2021, the EU will cancel the exemption of value-added tax (VAT) for goods with a value of ≤22 euros, and all goods imported into the EU that are declared after July 1 will be subject to VAT.
That means if you own an online store such as Shopify store, and you ship international packages straight to consumers inside the EU, then you will need to start accounting for EU VAT on each sale. It will no longer be possible for the delivery agent to collect the Import VAT from the consumer.
The customs of the country of entry will verify the I-OSS number of the transaction before the arrival of the goods. If an invalid or invalid number is used, it will automatically reject the import customs clearance procedures for the goods with the I-OSS number.
Goods that have been registered for IOSS will no longer be levied on import value-added tax when they are imported. Goods that have not registered for IOSS will be transferred to the destination for customs clearance by the country of entry under T1 conditions.
The new rules post new challenges for dropshippers. But they are various ways to get prepared. We suggest that you register your EU I-OSS number in advance to get ready soon for the new policy. For solutions that Topdser currently provides, please visit this page.
If you have other questions regarding the regulation change, please contact your account manager.
Learn more about VAT (Value-Added Tax):
Learn more about EU one-stop import declaration (I-OSS): https://ec.europa.eu/taxation_customs/business/vat/ioss_en