EU VAT changes

EU VAT changes

27/05/2021

Are you ready?

On the 1st July 2021 the previous VAT exemption limit of €22 ($26) for the import of goods into the EU will cease to apply. This means that every product that is sold from a non-EU country (e.g. USA, Great Britain, China), will now be liable to import taxes.

The EU wide changes take effect on the 1st July 2021 when the €22 ($26) tax exemption limit will end. This means that every product that you buy in a non-EU country (e.g. USA, Great Britain, China), will now be liable to import duties.

The EU Commission introduced the measures to remove the tax advantage towards non-EU mail order companies and strengthen member states domestic economies and stop VAT fraud.

Taxes are payable for each consignment of goods arriving from a non-EU country if they exceed the amount of €1 ($1.22). In addition to the taxes, carriers can charge a flat-rate service fee of €6 ($7). This is paid either by the customer at the time of delivery, or they have been prepaid by the shipper.

Source: The Recycler

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