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PCBWay adjustment on EU VAT

by: Jul 07,2021 1196 Views 0 Comments Posted in Help Center

Recently EU e-commerce make adjustment on VAT and Implement IOSS (IMPORT ONE-STOP SHOP) policy.

What is IOSS about?

1.The Import One-Stop Shop (IOSS) is the electronic portal businesses can use since 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods.According to the VAT rules applicable up until 1 July 2021, no import VAT has to be paid for commercial goods of a value up to EUR 22.

The new VAT e-commerce rules abolish this provision as of 1 July 2021. Thus, from 1 July 2021, all commercial goods imported into the EU from a third country or third territory is subject to VAT irrespective of their value.

2.A new special scheme for distance sales of business-to-consumer (B2C) goods imported from third territories or third countries of an intrinsic value not exceeding EUR 150 will be created and is referred to as the Import One Stop Shop (IOSS). If IOSS is used, VAT is not paid at the time of importation of eligible goods into the EU. VAT is paid by the customer as part of the purchase price (at check-out point).

3. The customs duty relief for goods with an intrinsic value not exceeding EUR 150 imported into the 27 EU members remains in place. That means that no customs duty has to be paid for goods in a consignment imported into the EU whose intrinsic value does not exceed EUR 150.

4. Import of goods with an intrinsic value of more than EUR 150 will still be operated in accordance with the previous import customs clearance mode.

Learn more: https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

https://ec.europa.eu/taxation_customs/business/vat/ioss_en

What will PCBWay react to VAT reform?

1.PCBWay will register IOSS VAT ID number and levy VAT for B2C customers’ orders with an intrinsic value not exceeding EUR 150 at check-out point.

2. PCBWay will declare and pay VAT to EU tax authorities on a monthly basis.

3. From 1 July 2021, in order to verify whether it is a B2B or B2C order, B2B customers will be required to provide the VAT number when placing an order.

Our IOSS paying method(DHL DDP) will be available soon at the end of July. In this period, you could still use those down below for your shipping.

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