EU VAT on e-Commerce (EU VOEC) Legislation – 2021


#1

On July 1, 2021, the 27 countries of the European Union (EU) will implement new VAT rules on e-commerce sales which may affect your sales of goods to EU consumers through online stores including Amazon.

If you are established outside the EU – Amazon will collect VAT on the sales of goods delivered to B2C customers in the EU, ordered through any Amazon store, where:

  • Goods are delivered from inventory stored outside the EU in a delivery with an intrinsic value of up to EUR 150 – This is referred to as the Import One Stop Shop; or
  • Goods of any value are delivered from inventory stored in the EU where you, the Selling Partner, are not established in the EU.

If you are established inside the EU, following changes to the VAT treatment and reporting of intra-EU distance sales will be introduced:

  • Distance selling thresholds will be replaced by a general tax at destination principle for all B2C e-commerce supplies of goods, i.e. VAT is due in the destination EU country
  • Introduction of Union One-Stop shop (OSS) simplification to report VAT on B2C sales cross EU

Click here to know the legislation in detail and what actions you need to take for the upcoming changes.

If you want a complete view of the European VAT requirements, you can visit our main VAT Education page here.


UK Company/Warehouse, EU Seller, New July VAT
Marketplace Tax?
#2

Anyone else just decided that the hassle is too much? I feel like there is always some attack on small businesses to make life more difficult. I for one would now not touch the EU with a 10ft barge pole!! They may as well just hang out a sign saying small businesses are not welcome here.


#3

If established outside of the EU and fulfilling with inventory from inside the EU - if Amazon is collecting VAT, do we need to do any VAT declarations anymore?


#4

yep, I really tried had all the vat eori shipping broker. but it’s just too much. don’t blame the eu though. these are just the rules that always existed. It should have been easy to realise we would suffer them if we left the fold.

we have been divided and conquered by our own volition.


#5

My concern is

Does Amazon Store mean Amazon platforms FBA?

What if the seller is not VAT registered? What impact will it have on any goods sold on Amazon Store?

Who will do the customs clearance? Will Amazon do this with its own service or use a third party courier?

If Amazon or a third party does the customs clearance what will charges be for this service?

Who’s EORI number will Amazon use if the seller is not registered or have a EORI Number?

All 27 countries have different duties on imports how will Amazon and the seller deal with this? The prices will vary from country to country.


#6

Its not the EU fold, Im in EU but I buy all my supplies from UK and now the supplies prices has went up by 40% including customs tax. It works both ways


#7

Don’t blame the EU. It’s not an ‘attack’ more like an act of self-harm on our part. This is Brexit in action, a big thanks again to all its many supporters in the forums. (To answer your question, yes, the extra cost and administration means that I will very likely be giving up on these markets).


#8

Totally agree. If I hear the words ‘oven ready deal’ one more time I will scream!! I am still baffled about this mysterious ‘free trade’ deal. But hey ho that is life I guess.


#9

No blame here totally with you. I think there is a great misconception in the UK that the ‘DEAL’ meant we carry on as before. But as those of us in business have discovered it was all lies.


#10

I know it is really rubbish all round. Best self harm ever. I am just off to poke sticks in my eyes to see if it makes me see better. Oh well


#11

100% right

We hear what we want to hear and forget the rest was even mentioned


#12

Firstly 100% agree - any business owner who voted Brexit was a little short sighted in my opinion, even if they didn’t sell in the EU right then - they may have done in the future! However, I think all the narrative caused people to get muddled about what we were actually voting for. On the upside we do have a fantastic vaccine roll out which may not have happened had we not left.

Anyway I’m a little confused if anybody can help me out? I’m VAT registered in the UK and have an EORI number. I only fulfil B2C myself FBM. What are the extra costs? I understand the VAT for each country but these all hover around the 20% I already had loaded into my list price for UK VAT so I’ve decided to keep these as stagnant. I imagine there are a lot more costs but I don’t really know where they are hiding! For EU sales I charge postage on top so if Royal Mail increase (again) will put these up to.


#13

Nothing to do with brexit, this is an EU thing. Up to now I have been selling into the EU collecting the VAT and paying the EU vat through my courier, so the buyer has nothing to pay. Very simple and clean.
no hassles at all. However now, Amazon and ebay want to take the VAT and pay it instead to the EU and now we have to do different invoices so that the buyer is not charged again when we send the item, which means registering for VAT in an EU country. That for me is making what was very simple and easy into a total nightmare.
I send items all over the world and it is very easy but the EU just made this, for me, not worth the hassle anymore. nothing to do with brexit, just the EU making sure they still get their cut, which for me, they were getting anyway but with less hassle.


#14

Import duties and possibly carrier fees for a start.

Having said that, I’m not sure what happens to those EU import limits come teh change in July.

So if you ship FBM from UK to an EU country, an order that is £50 for example. With Amazon collecting the VAT on it, what level are teh duties assessed at and do we still need to ship DDP (RM code MTV).


#15

The new legislation actually more or less mirrors what came into effect in the UK in January regarding EU and ROW imports. Originally this IOSS was supposed to happen at the same time.
It will in fact make things more straightforward for transactions under Eur 150 because the platform collects and remits the vat so no paying fees to couriers for clearance.
It will be necessary for us to put the platform’s IOSS number on the package label so EU customs know that vat has been paid - eBay already do this for territories like Norway and the US - so no doubt the number will simply be in the address label.
It means that for some they can deregister in a whole load of EU territories if they wish to do so.
As long as your sale is under Eur 150 it’s probably better than now.


#16

only for any B2B transactions.

In my case, That kind of ruins everything for me because I still have to pay for all the compliance costs of keeping an EU registration, all for just the few stray B2B orders I receive. An alternative is to ship these from the UK and allow the business buyers to pay their fees upon receipt, but I’m not sure if amazon allows that.

infuriating, it’s just as expensive but far more complicated this way! Ridiculous that they didn’t include B2B!


#17

actually this was planned long before brexit, in order to stop Chinese VAT evasion where they lie on the value of items on their forms. Even for current EU countries, there are no more distance selling thresholds, and tax is now taken at point of delivery instead of point of sale. EU or no EU, makes no difference at all.

Remaining would not have changed this particular directive, it was signed in long before brexit. It was meant to happen in January but they delayed 6 months over corona. It would have been better if they didn’t delay though, because UK stuck to the January date, meaning we updated here and then there was a 6 month lag for the EU to get around to their side!

But other than the timing, nothing else would have been different. We’d still be paying weird new VAT rates at point of delivery, We’d still be registering for ioss, and we’d still be losing our distance thresholds, and the low value item exemption would still be gone.

If you want to blame someone, blame the dodgy Chinese sellers who declared their £100 items as having a value of 5 pence to avoid paying VAT. That’s what brought this on.

So much chaos in such a short time though, I’m also struggling with the ceaseless changes every 5 minutes. During a pandemic, none the less!


#18

Definitely under 150EUR we sell greeting cards! Wondering if it’s worthwhile at all to be honest or I should switch the EU marketplaces off on the 30th June we don’t do a huge amount as it is on those sites. However, I just don’t understand it - like you say it could end up being simpler! We do have a VAT number which I understand Amazon need so at least that part is done which I know for many small sellers is an issue.


#19

Yes I assumed there were more but it’s annoying there is not a clear cut way of finding out exactly what these are! We sell greeting cards so have been fine so far with the 22EUR limit as under that so it’s the changes from 1st July we now have to fall in line with.


#20

For orders FBM under €150 sent from the UK to EU it will be a lot easier.

Amazon will be reporting using the IOSS.

So you will just need to ensure the carrier you use has the IOSS number reported from Amazon and they can clear the order in customs and there would be no extra payment required by the customer.

There would be no duty owed on orders under €150. And no VAT regristration or requirements in each EU country.