On July 1, the EU will officially implement new tax reform regulations

Starting from July 1, 2021, the EU will officially begin to implement the EU e-commerce VAT regulations, cancel the original policy of "goods imported into the EU with a value less than (or equal to) 22 euros will be exempt from VAT", and impose VAT ( Value Added Tax, a tax system in the EU, referred to as VAT in China ) on all goods imported into the EU .

Sellers who sell through electronic ports (such as Amazon, etc.) should read the relevant platform policies carefully. Independent station sellers need to register on the electronic portal IOSS ( The Import One-Stop Shop ) as soon as possible to avoid affecting subsequent transactions. The review time for IOSS registration related content is about 5-7 weeks. According to the official website of the European Commission (https://ec.europa.eu/), IOSS will be open for registration from April 1 this year and will be officially put into use after July 1.

If the seller is not registered with IOSS, the buyer must pay VAT as well as customs clearance fees usually charged by the transporter.

Under the new EU VAT regulations, the value of an order 's shipment is indicated in the order details as "unit price (excluding VAT)" . For the entire order, this is the price of the goods sold, excluding customs duties and any charges listed separately on any invoice, such as freight and insurance .

To fulfill the VAT e-commerce obligations for long-distance sales of goods exported to the EU , a monthly declaration is required , and the scope of application is as follows :

✓ Goods dispatched or shipped from outside the EU at the time of sale;

✓ The value of the goods shipped or transported does not exceed EUR 150;

✓No excise taxes (usually applied to alcohol or tobacco products) are required.

No VAT is payable in the following cases :

✓ The seller sells several goods to the same buyer and the packaging and transportation amount of these goods exceeds 150 euros. These goods will be taxed when imported into the EU member states;

✓ The seller 's goods are sold over long distances through electronic ports, such as markets or platforms. In this case, the electronic port is responsible for paying VAT. ( For example , Amazon's self-shipping sellers will be deducted and paid by the platform)

In addition, the seller's use of DDP (Delivered Duty Paid)/DDU (Delivered Duty Unpaid) may result in different taxes and fees . Please consult your logistics carrier for details.

Note: The new VAT changes do not apply to the following areas:

Mount Athos, Canary Islands, French territories of Guadeloupe, French Guiana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin, Åland Islands, Campione d'Italia, Italian waters of Lake Lugano, Island of Heligoland, Territory of Büsingen, Ceuta, Melilla, Livigno

*Chinese translation comes from Google Translate

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