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EU customs changes with ecommerce VAT package

  • Mar 27, 2021 | Richard Asquith

EU customs for ecommerce is changing on 1 July 2021. 

This is based on the EU introducing a range of VAT measures for ecommerce sellers and marketplaces from 1 July 2021. These include: One-Stop-Shop (OSS) single VAT return; ending €22 import VAT exemption with new IOSS return for imports not exceeding €150; and new marketplace VAT liabilities.  

To support these VAT measures, there are also customs changes to the UCC codes:

  • A new super reduced dataset customs declaration for goods not exceeding €150 being imported to EU consumers;
  • This will mean just a fraction of the data requirements for the customs declarations; and
  • ‘Green channel’ fast customs clearance for consignments not exceeding €150 using the new IOSS reporting regime
 

Customs declarations containing the reduced (H7) data set can be used by:

  • by any person
  • for goods sent in B2C, B2B or C2C consignments up to an intrinsic value of €150 subject to customs duty exemption in accordance with Article 23(1) DRR or in C2C consignments up to an intrinsic value of 45€ subject to customs duty exemption in accordance with Article 25(1) DRR and 
  • for IOSS, special arrangements or the standard import VAT collection mechanism. 
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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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