From July 1, 2021, the VAT exemption for low value imports into the EU’s 27 countries was removed. As a result, VAT is now due on all sales of goods into the EU regardless of the value of the package. In order to simplify registration and remittance of tax and improve the customer experience, the Import One-Stop Shop (IOSS) was introduced. This allows businesses selling goods to European consumers from outside the EU to avoid having to register for VAT in multiple European countries (a poor seller experience) or leaving the customer to physically pay import VAT at the border (a poor customer experience).
IOSS can be used to sell goods from a location outside of the EU (e.g. the UK, the US, China and Taiwan) direct to European customers with a consignment value up to €150.
Source Avalara
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