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B2C sales of goods to EU over €150 - VAT

After 01 July will it be possible to still send goods to the EU with the consumer picking up the VAT

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Hello

I am going around in VAT hell and am hoping that someone can save me!

A client has an online store and ordinaily will make a few sales a year to consumers in the EU.

After 01.07.2021 will it still be posible to send goods, with the customer paying the import VAT?

The goods are high end fashion - rarely will a purchase be under €150 which is the threshold for the IOSS and the non-Union OSS can not be used for sales of goods (or that is my reading of the information).

Many thanks in advance

Replies (6)

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Jason Croke
By Jason Croke
27th May 2021 20:07

Yes, it will be possible to ship goods from UK into EU and customer is on the hook for the import duty/import VAT.

Even if the goods are under £135/€150, Import One Stop Shop is optional.

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Replying to Jason Croke:
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By EllaB
28th May 2021 08:40

Thank you so much!

I thought that was what I was reading but the more I read the less certain I became!

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panda ketteringUK
By ketteringUK
28th May 2021 08:45

Royal Mail is now developing a system as an alternative to ioss. Hopefully it will be sufficient for incidental sales to EU.

'The service will allow the UK merchant to calculate and collect from their customer at the checkout an additional amount that will cover the cost of import VAT and customs duty alongside the PDDP handling fee. This will help to avoid unexpected charges and delivery delays to the end recipient, improving the overall customer experience'

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Replying to ketteringUK:
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By EllaB
28th May 2021 09:33

Thank you - that is really helpful to know.

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Jason Croke
By Jason Croke
28th May 2021 09:34

I think we will see more services like this, I doubt postal services or courier relish having to hold so many parcels hostage whilst waiting for consumers to pay the VAT or worse, refusing the delivery and having to send it back.

So if Royal Mail want to collect taxes upfront, it benefits them, benefits the customer and cuts down on returns and hassle for the seller.

That is, at the end of the day, what IOSS is all about, about keeping goods moving smoothly, taxed in the right place and cutting down on millions of transactions between postal service./courier and end customer.....but IOSS remains optional but suspect in time it might become mandatory once the system proves itself robust and worthy.

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Replying to Jason Croke:
panda ketteringUK
By ketteringUK
28th May 2021 10:05

Nevertheless, so much for smooth transition and no changes to the way we live and trade with our European counterparts, one politician once said in 2016….

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