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New EU VAT e-commerce rules


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Thank you for letting us know which one it is not, very helpful ๐Ÿ˜‰

Let's try IOSS than (Import One Stop Shop); https://ec.europa.eu/taxation_customs/business/vat/online-sellers_en

...... or perhaps it's one of those other OSS's?

Fact is that there is an EU system by which the appropriate duty can be paid at the source (Seller). This would hopefully avoid the "friendly" local handling-fees.

They are absolutely right in one line give in the IOSS article; "As EU customers are used to prices including VAT, the payment of additional fees at the time of importation might lead to the customer refusing the package in question."

I do hope that CousinsUK signs up for that system ..... making them aware of the coming problem doesn't seem to be that easy.

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In short, Items coming from the UK will be retained in customs for taxes proposes. In Portugal, values under 22eur(including shipping!)are exempt but otherwise I'll have to pay 23% vat plus all other small bureaucratic expenses. I think CousinsUk has just lost a customer๐Ÿ˜’. Sad...

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9 minutes ago, alvaropinto said:

In Portugal, values under 22eur(including shipping!)are exempt

That's all about to change as per the 1st of July. No more โ‚ฌ22 tax exempt. We all (within the EU) have to pay taxes and bureaucratic expenses over the first โ‚ฌ-cent when bought outside the EU.

Great the EU, isn't it !?

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"Nothing" to do with Brexit. It's a new (Brussels) EU-rule (under the disguise of "protectionism" / "unfair competition" => read more tax-collection) for everything bought outside the EU. Unless the (for example) Chinese seller signs up to the EU-system, you can per the 1st of July kiss goodby (unless you like to pay a fortune) to all the cheap stuff / parts out of China ......

It's the new "iron curtain" but it is now us who are trapped inside .....

Therefore it's to hope that CousinsUK signs up to the system so at least parts from them stay payable.

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I have created this topic to take in (including movingย posts where necessary) all theย discussions aboutย the new rules that will be in effect in the EU about importing goods from outside the Union, starting July 1st, 2021. The official websiteย to read first is theย following:
https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

You can also find online other publications and article about IOSS, that is the programย with which (n the future) VAT could be paid at the source for small personal imported goods, if the seller joins the program and his country will have provisions to do so. At the day of this writingย this,ย it isย not activeย anywhere.

Now, anyone in the world would rather notย payย any kind of tax, and our forum rules do not preclude political discussion, howeverย since thisย forum has not been created and maintained with the Admin's money to serve as a soapbox, Iย kindly ask to avoid making general political statements, limiting insteadย toย fact sharing, supported by relevant links.ย 

On that line my own take is that it was unfair and self-damaging for the EU to allow the Chineseย to get an advantage by selling tax free in EU, while is worth noting that alsoย China took a tough stance on illegal imports since 2019ย https://en.wikipedia.org/wiki/Daigou

However, IMHO the matter must also be seen in term or reciprocity, e.g. an official Chinese source states thatย the tax free postal allowance for items imported in China by post isย RMB 1,000 ย (โ‚ฌ129)ย http://english.customs.gov.cn/Statics/097b86e8-14bc-470a-b20f-081b199cfaf7.htmlย while their VAT is 13% (actually import taxation is more complicated than just that)ย ย https://www.china-briefing.com/news/import-export-taxes-and-duties-in-china-2021/#:~:text=From April 1%2C 2019%2C China's,39).

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A couple of weeks ago I received my firstย IOSS purchase, that is a small tool from a reputable Ebay UK seller. The label clearlyย indicatedย "VAT Paid IOSS xxxzzz", notwithstanding this my national post charged an accessibleย โ‚ฌ5.90 as customs handling fees - no VAT was charged. That is clearly not in the intent of the program, but unless the EU mandates that no additional fees on IOSS can be charged (and I doubt that will happen), I'm afraid that any postal administration, and private courier will still continue to charge as they please. Their justification is that current regulations state thatย "any packageย presented to customs" is charged handlingย fees.

In contrast, the Chinese (AliExpress) already do better than that. They chargeย VAT at time of purchase, and shipย all EU orders to a centralized hub in the Netherlands, where they clear customs and combine multiple packages to a same customer when possible. The shipment is then made from the EU and no charges are due at delivery.

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