It’s now been six months since the EU introduced major changes to how low-value goods shipped from outside the EU to European consumers were taxed. As a reminder, with effect July 1, 2021:
- the Import VAT exemption for low-value goods was removed
- the Import One-Stop-Shop (IOSS) was introduced to provide a single EU VAT registration and VAT return for low value imports (under EUR 150)
- under an IOSS registration, local EU VAT charged at the point of sale, with the rate determined by the destination country of the goods
- goods travel through a green customs channel – with fast clearance and no further VAT levied upon import
- businesses established outside the EU wanting to use IOSS need to appoint an intermediary
- marketplaces are deemed to be the supplier for VAT/IOSS purposes for imports of low value goods.
Source Avalara
