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Jul 2, 2021

Sweeping VAT changes for goods outside the EU

The EU has brought in new VAT rules for non-EU eCommerce exporters through the introduction of the one-stop shop (OSS).

Under the optional process, non-EU B2C suppliers of goods and services no longer have to make multiple registrations for each EU state they supply to.

Instead, they can register in just one EU member state that they supply to, filing their returns there according to the member's rules in a system called the Union OSS.

The OSS also introduces the import one-stop shop (IOSS), covering goods dispatched from outside the EU with a value not exceeding €150.

Under the IOSS, online sellers in non-EU countries need to apply VAT to their products when selling goods for a buyer in the EU, the VAT rate being the one applicable to the EU country the goods are delivered to, which can be found on the European Commission website.

The EU says the OSS will make the trading process easier for suppliers and buyers, but some ecommerce businesses face troubles with reports that new rules will cost UK businesses at least £6,900 to comply with.

Talk to us about the new EU VAT rules.