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VAT on sales to EU consumers

I think I'm getting confused

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Per the Jason Croke 'Brexit Reality 6' article:

The EU has removed low value consignment relief from 1 July 2021, meaning all imports into the EU will be subject to import VAT.

I know the £135 threshold is relevant for imports to the UK and whether the seller needs to register for VAT here, but I didn't realise there was a similar threshold going the other way at the moment (other than for duty purposes).

I thought all sales of goods to EU customers from outside the EU were currently ZR and the customer had to account for import VAT, the same as a UK customer receiving an import if the consignment is over £135.  But the quote above suggests that some imports to the EU aren't currently subject to import VAT.

Can anyone enlighten me?

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Jason Croke
By Jason Croke
21st Apr 2021 12:18

Currently, importing goods into the EU valued at under €22 are not subject to import VAT (Low Value Consignment Relief , LVCR). From July 2021, the LVCR is removed, so that all goods of any value are subject to Import VAT.

The £135/€150 value is where import DUTY kicks in, so at present an item on a website for say €20 can be delivered duty and VAT free, but from July, it'll be duty free (as under £135) but subject to VAT at whatever VAT rate applies to the customers location.

The sale of the goods are still zero rated exports, customer liable for the VAT unless seller opts to use Import One Stop Shop, whereupon seller charges VAT based on customers location and declares this VAT to the EU via the IOSS VAT return.

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