EU customs changes with ecommerce VAT package

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.