JUNE 7th, 2021 - NEW VAT POLICIES WHEN SHIPPING TO THE EUROPEAN UNION

 

Do you ship internationally to EU destinations?

 

On July 1st, 2021, the EU and UK implemented new rules regarding the eCommerce VAT collection and reporting.

The new VAT e-commerce rules now require that all commercial goods imported into the EU from a third country or territory are subject to VAT irrespective of their value (previously the policy was anything over EUR 22, or $25.95).

 

Many of you are familiar with the IOSS (Import One-Stop Shop).  This is the electronic portal through which your IOSS number can be transmitted at the time of sale you make to an EU destination.  This allows you to declare and pay the VAT and duties to the tax authorities instead of your end buyer having to pay at the time the goods are delivered. 

 

At this time, the software our shipping compliance the company offers does not allow for the transmission of your IOSS number to the carriers.  Our IT Department is currently working with the supplier of the software to upgrade and build this into the existing interface.  We will also be upgrading our existing integration modules so that the IOSS number can be collected via that API and passed onto the carrier during the moment the shipment passes through our ship station. 

 

This has become the top priority for our team at this time and we will post updates and inform you the moment these changes are completed and implemented.

 

Until that time, shipments will continue to go through as DDU (Delivered Duty Unpaid).

 

As always, if you have any questions about this announcement, please reach out to your Client Care Representative via the Zendesk ticket system.

 

~Linda Sorna, Client Care Manager

 

 

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