𝗘𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 “𝗯𝗶𝗴 𝗯𝗮𝗻𝗴” 𝗼𝗻 𝟭.𝟳.𝟮𝟬𝟮𝟭 – 𝗡𝗼 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗴𝗿𝗮𝗰𝗲 𝗽𝗲𝗿𝗶𝗼𝗱 –
𝘄𝗶𝗹𝗹 𝗶𝘁 𝗯𝗲 𝗕𝗥𝗘𝗫𝗜𝗧 𝟮.𝟬 𝗮𝗻𝗱 𝘃𝗲𝗿𝘆 𝘂𝗻𝗵𝗮𝗽𝗽𝘆 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀?

From 1 April 2021, non-EU suppliers and marketplaces have been able to register with IOSS. Customers of these “smart” suppliers will then be able pay VAT directly at checkout (point-of-sale), and their shipments will be exempt from import duties and delivered without delay at borders.

For suppliers and marketplaces without IOSS registration, the old VAT scheme will still apply after 1 July 2021. In this case, import VAT (all shipments, no threshold anymore) is due on entering the EU (customs clearance) and must be paid by the recipient or their representative. To date, most shipments (below 22 EUR) have not been subject to import VAT and enjoyed the simplified (cheap) delivery channels offered by EU postal operators, unsing postal forms and processes.

𝗕𝘂𝘆𝗲𝗿𝘀 𝗯𝗲𝘄𝗮𝗿𝗲!

However, if a shipment ordered in Asia in May or June enters the EU after 1 July 2021, and the supplier does not use IOSS, import VAT will be due and the postal operator will charge for “presentation to customs” as well as a fee “managing and collecting the applicable VAT”. For low value shipments, this fee plus import VAT will be a significant (and unexpected) additional cost. CLS expects that initially, many low value item shipments will be refused or deemed undeliverable, creating many dissatisfied EU recipients.

What do you think?