Remove import VAT exemption (EU)

Remove import VAT exemption

What does it mean?

From July 1, 2021, VAT will be charged on all commercial goods imported into the EU, regardless of value. For consignments with a value of €150 or below, this can either be charged at the time of the sale by using the new Import One-Stop Shop (IOSS), or be collected from the end-customer by the customs declarant (FedEx).

Introduction of an Import One-Stop Shop

For e-commerce consignments of €150 or below, the EU is introducing an optional Import One-Stop Shop (IOSS) to clear goods through customs. This will allow sellers or online marketplaces to charge VAT at the point of sale and remit it directly to the authorities. This can make the process simpler and more transparent for the consumer, and helps to ensure efficient customs procedures.

If the IOSS is not used, FedEx will collect the VAT from the customer prior to delivery and pay it to the authorities.

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