02 July 2021


On 1 July, the new VAT e-commerce package entered into force. The VAT rules on cross-border business-to-consumer (B2C) e-commerce changed, alongside the customs formalities and processes for importation and exportation of low value consignments. As of Thursday, the €22 VAT exemption was lifted so that VAT is charged on all goods entering the EU to ensure a level playing field for EU businesses. A new form of customs declaration with a super-reduced dataset will be used in most EU Member States as a simplification, available for low value consignments of an intrinsic value below €150, whereas for certain goods with prohibitions and restrictions a full declaration is required. The introduction of an Import One Stop Shop (IOSS) for non-EU sellers will allow them to register easily for VAT in the EU and will ensure that the correct amount of VAT makes its way to the Member State in which it is finally due.

Additionally, so-called special arrangements are introduced to manage sales done by sellers or platforms that are not registered in the IOSS. Under that scheme, the VAT due upon import is collected from the buyer upon delivery of the parcel in the country of destination. The collected VAT by operators is paid on a monthly basis to the relevant authorities.

Full details including advice and factsheets for businesses and consumers, are available on the Commission’s dedicated website.