Launch of the Import One Stop Shop Scheme

From 1^st July 2021, new VAT rules will apply for business to consumer (B2C) transactions. The VAT exemption for the import of goods with a value not exceeding EUR 22 will be removed, therefore all goods will be subject to VAT.

The Import One Stop Shop Scheme (IOSS) will be launched on 1^st July 2021 in order to help businesses to comply with their VAT e-commerce obligations on distance sales of imported goods that are valued at less than EUR 150. The scheme will allow those selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities (avoiding the need of the buyer to pay the VAT the moment the goods are imported).

IOSS will help in simplifying the VAT invoicing process, this will ensure fair trading for EU companies. Consumers in the EU will also then know when buying goods online from outside or inside the EU, the VAT rate will be the same rate for goods acquired in their home country.

If the seller is not registered to use IOSS, the purchaser will have to pay the VAT and usually a clearance customs fee (charged by the transporter) once the goods are imported into the EU.

You can find out more about the scheme here.

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