[Updates] New VAT Requirement Before Shipping To Europe Countries

Things you should take note The European Union(EU) has introduced new rules governing the value-added tax (VAT) applies to all parcels that ship across to EU countries.

If you’ve been shipping a parcel to European countries,  then you should know that custom checking might causes the parcel to be delayed to your customer/ recipients. We’re sharing with you all the most important information about the new VAT requirements of clearing customs for your shipment to the European countries.

From 1st July 2021, EU VAT exemption has been abolished for importing items with values up to EUR 22. All goods imported to EU Countries regardless of any value will be subjected to VAT.

List of affected countries:-
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

 For item value up to EUR 150:-

• Payment of VAT will need to be charged at the point of sale (before reaching EU customs).
• VAT will need to be declared via Import One-Stop Shop (IOSS).
• 12-digit IOSS number will need to be included in your shipping details.

 However, for item values above EUR150:

• the collection of customs duties and VAT remains at the point of arrival
• other documentation might be required prior to custom duty officer requests.

If you do not know yet, customs officers will mark certain parcels as “suspicious” and ask for supporting documents for further inspection. For first-time customers, please note that customs clearance will take a longer time in the beginning and that supporting documents are more likely to be needed.

Hence, failure to provide IOSS VAT number (on the commercial invoice), items will be returned and additional charges will be incurred by courier / custom as well.

IOSS also know as Import One-Stop Shop (IOSS) –  it’s a process to facilitates the collection, declaration and payment of VAT at point-of-sale.

IOSS allows sender to import goods to receivers in EU to collect, declare and pay VAT to tax authorities at point-of-sale, instead of making VAT payment at the point when the goods are imported into EU.

This allows much simpler process, fast-lane and better transparency for senders and helps to ensure efficient customs procedures.

If IOSS not used – normal procedures applies, destination postal operators will collect the VAT from addressee prior to delivery and pay it to the authorities; resulting in longer processing time.

Scenario 1: If sender register for IOSS

The VAT  will be paid at the point of sale. Receivers will then receive their goods to their home directly without the need to pay VAT upon importation.

Scenario 2: If sender did not register for IOSS 

The VAT will be paid at the point of parcel arrival. Invoice will be imposed by customs authorities/ postal operator/ courier company for VAT payment as well as handling fees.

Not sure how to do it? Don’t worry we’ve got you covered with the simple steps and links for registration:

Step 1: Sign Up & Register Through EU-Established Intermediaries / Agents

Step 2: Obtain IOSS VAT Number
You will obtain a 12-digit VAT identification number once IOSS registration done and this will need to be included on your commercial invoice.

With the registered IOSS VAT number given, you are require to update to your EasyParcel profile, under the “Company” tab, add to “IOSS Number” column. Moving forward you’ll be able to courier your shipments to Europe countries without any hassle.