import vat

New VAT EU rules on imports starting July 01, 2021

VAT (Value Added Tax) rules on online sales are going to change on July 1st, 2021. Be sure to consider the following changes when making a purchase online from a seller based outside the EU like e.g. China because it will impact the final cost of your products.

Option 1
You will pay duty and VAT on your imports into the EU

The VAT exemption for imports valued of up to 22 EUR will no longer be valid.

Till July 1st, 2021 if you purchase a product of a value of up to 22 EUR, you don’t pay import VAT when clearing the customs on imports into the EU.

Starting July 1st, 2021 such clearance will add fees to your purchase – you will have to pay import VAT (most often standard rate of around 18-24% depending on the EU country you import to) and import duty (which is usually around another 3-20% depending on the type of product being imported; import duty rates are the same in all EU countries).

Option 2
Your seller will pay import VAT and duty for you on your imports into the EU

Your overseas seller may decide to register for so call IOSS – Import One-Stop-Shop which is an online platform introduced by the European Union, where foreign e-commerce businesses can register to pay import VAT and duty for you and other buyers located in the EU.

When you buy a product online which is going to be shipped from e.g. China, your Chinese seller can register for IOSS and include the VAT in the retail price.

OISS is intended for products / sales valued up to 150 EUR.

Starting July 1st, 2021 when you receive a request from your courier company to pay import VAT and duty on your shipment from e.g. China, it will mean that:

  • the seller is not registered for the IOSS platform
  • the shipping documents are not complete
  • the value of the goods in higher than 150 EUR

Please make sure to contact your foreign seller before you make a purchase, to determine if VAT and duty charges are already included in your retail price.

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