Until now, there was no tax on shipments valued at less than 150 €. This will change after July 1, 2021, all shipments in the EU will have to pay VAT.
Tax authorities will start requiring traders to declare VAT on low-value shipments of goods in the EU.
To make things easier, the EU has created the IOSS portal, which will make it much easier and more efficient to declare and collect VAT.
6 advantages of IOSS:
- Currently most customers of EU-based retailers will face unexpected VAT payments for the online purchases they make. By registering with IOSS they will be able to show their customers the total cost of the purchase (including VAT).
- With the VAT already paid, imported products will be easily cleared through customs, thus saving time for dispatchers and making delivery faster.
- In case you are not based in the EU an IOSS intermediary will be able to fulfill your VAT obligations, you can register with IOSS through Crossborderit.
- By being registered with the IOSS of an EU member state you will be able to ship to all your customers in the EU.
- Customers can be responsible for paying VAT.
- The IOSS greatly simplifies the reporting and payment of VAT to the tax authorities in the EU.
What about shipments exceeding the value of 150 Euros?
If a shipment exceeds 150 Euros, it is no longer an IOSS shipment. Other suppliers can no longer provide support. Crossborderit can.
A CBIT integration can provide the total cost at destination at the time of payment. In addition to that, CBIT can collect and pay taxes as well as customs duties for both low-value and high-value IOSS.
Learn more about IOSS Crossborderit’s representation.