Changes to VAT for imports into the EU from July 2021
Dear business sellers,
in our Seller News in March 2021, we announced that from July 1 there will be major changes to value added tax (VAT) affecting the following supplies:
- imports into the EU,
- supplies within the EU by sellers not established in the EU, and
- cross-border supplies within the EU by EU sellers.
Here is an overview of everything you need to know:
- Learn more about OSS registration: The existing thresholds for distance selling of goods within the EU will be replaced by a new EU-wide threshold of €10,000. From July 1, sellers can declare VAT for their cross-border supplies to other EU countries through the One-Stop Shop (OSS) procedure. Registration for the OSS procedure has been possible since April 1, 2021.
Please contact your tax advisor to understand the impact on your business. - Check the details stored with eBay: eBay is subject to new legal requirements, audit and reporting obligations in the area of VAT. Therefore, make sure your business details, your VAT identification number, and your item location are always up to date.
- Specify the VAT rates: If you list on a European or UK eBay site, always specify the gross price and the VAT rate you used to calculate the gross price. This ensures that we can always show buyers the correct VAT.
- Provide the IOSS number for imports: If you import goods into the EU and eBay has to collect VAT on your sales, always provide the Import One-Stop Shop (IOSS) number supplied by eBay electronically. Otherwise, your buyers may have to pay VAT upon delivery.
We recommend that you familiarize yourself with the upcoming changes so that you can prepare your business in time. Please contact your tax advisor to discuss the next steps.
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