There have been significant changes to the EU VAT rules for the sale of goods for businesses selling goods to consumers (B2C) located in the EU from 1 July 2021. The changes mean that EU VAT must be applied on all goods that are sold online in the EU regardless of price including those through online marketplaces such as Amazon or eBay.

Whilst the UK has officially left the EU, these changes will have effect on UK trade. They will affect those sending goods directly from Great Britain to consumers in Northern Ireland and the EU.

To help deal with these changes, the EU has introduced a new online Import One Stop Shop (IOSS) to facilitate and simplify the declaration and payment of VAT for online B2C sales of goods imported in the EU with a value not exceeding £135 (€150).

If you only sell through a marketplace, they should have already registered for the IOSS. There is also no longer a de-minimis limit as the old rules that allowed items with a value of €22 or less (known as small consignment relief) to be imported into the EU have been removed. Goods with a value of more than £135 (€150) continue to require formal customs clearance as before.

There are also significant changes in relation to the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland.

If you require any assistance in dealing with these changes, please let us know.