From 1st of July, the new EU policy has abolished import exemption for consignments of a value ≤ EUR 10-22. For consignments of a value ≤ EUR 150, the Import One-Stop Shop (IOSS) can be used to declare and pay the VAT. The vendor (directly or via an intermediary) registers for the IOSS in a Member State (MS or MSI) and charges the VAT to the customer at the time of supply, defined as the time when the payment is accepted. They then declare and pay VAT to the MSI on the basis of a monthly OSS VAT return; the MSI transfers the VAT to all MS of consumption (MSC). For consignments which are VAT exempt upon importation, the IOSS VAT number must be communicated to customs at the latest upon lodging of the import declaration. Each MS must compile a monthly listing including the total value of imports under the IOSS, per IOSS VAT No.

This is required for all your imports into any EU member state and all distance sellers must register for this in the state they wish to import. It is important to remember that as a distance seller you must charge VAT as you sell and you will need to pay or remit the VAT in the member state where your goods are sold or where you register for VAT on a quarterly basis – e.g. If you ship goods to, through or are registered in Netherlands but the buyer is based in Germany, you have to pay or remit your VAT in the Netherlands. It is also important to know that from July 2021 in the EU the current VAT registration thresholds of each member state changes to EUR10,000.00 per annum for distance sellers or Marketplace sellers.

To find more information about IOSS, please click on the link below:
https://ec.europa.eu/taxation_customs/business/vat/ioss_en

To find the IOSS portals for all EU member states, please click on the link below:
https://ec.europa.eu/taxation_customs/sites/default/files/member_states_oss_contact_details.pdf

If you are a marketplace seller who use Ship Smart for e-commerce deliveries, the required IOSS number will be updated by the marketplace to Ship2world’s platform automatically.
If you use Ship2world’s standard booking process, you will need to add your registered IOSS number in the parcel details.

The process for VAT remittance is at the current time the responsibility of the distance seller or marketplace through a Local representative who will handle your VAT remittance. This means that when an item is sold VAT must be charged to the UK buyer as Supply VAT. The VAT/EORI number of the marketplace or seller IOSS or VAT must not be displayed on the invoice (Commercial) or the CN22/23 (postal) documents. All data should only be transmitted securely in the electronic data or manifest. On arrival, the declarant information will be entered and the goods will clear customs on the declared EORI/VAT number. The marketplace or distance seller will then need to remit the VAT on a per entry basis or monthly or quarterly as defined by the EU Commission through your authorised intermediary or VAT consultant in your chosen country of arrival into the EU who will correctly distribute the VAT to the country where the item was purchased.

Direct Presentation

On the 1st January 2021 the United Kingdom has become a third country as far as the European Union is concerned. From this date UK manufacturers and importers are no longer considered to be an economic operator established in the union as are manufacturers in the rest of the World. As a consequence UK Manufacturers and sellers’ distributors in the EU must now take on the ‘obligations of importers‘ for the purposes of Union product legislation. These obligations are as follows:

• • Ensure the correct and appropriate conformity assessment procedure has been carried out by the manufacturer.
• • Check the manufacturer has drawn up the appropriate technical documentation and affixed the relevant conformity marking (e.g. CE marking) to the products.
• • Check the manufacturer has fulfilled their traceability and safety obligations.
• • Check that, where relevant, product instructions and safety information have been provided in a language easily understood by consumers and other end-users – this is the local language of the country of destination.
• • Provide a European name and address which can be placed on the product, its packaging or accompanying documentation.
• • Keep a copy of the products declaration of conformity and necessary disposal or WEEE compliance.
• • Ensure technical documentation can be made available to the competent national authority upon request.