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EU VAT on e-Commerce (EU VOEC) Legislation – 2021
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.
91 replies
Seller_l70y09sPLwP6D
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.
Seller_aFK2oblk0p8u0
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?
Seller_xUKHc5xSYJmI4
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.
Seller_JeSBYj1XH8qlB
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.
Seller_OD408ZNiEUfUp
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.
Seller_RnDSpi3VaWB4x
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.
Seller_oYl0UE5Ve5HSf
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.
Seller_RnDSpi3VaWB4x
Generally, a ‘good thing’ and it will mean at last that US and Chinese sellers aren’t able to undercut as easily.
Now to deal with the fakes…
Seller_vJ08QoZpmGgNp
Just asking because I’ve no idea myself!
I’m based in Northern Ireland, so am I in The EU or out of The EU ( in regards to EU VAT on e-Commerce (EU VOEC) Legislation – 2021 ) ?
AnyOne?
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