Changes to Value Added Tax (VAT) threshold for EU-bound eCommerce items
Changes to Value Added Tax (VAT) threshold for EU-bound eCommerce items
On 1 July 2021, the EU removed the low-value VAT threshold for eCommerce items. This means all EU-bound eCommerce items will be subject to VAT from 1 July 2021. All items from €0-150 will have VAT, formal clearance and customs clearance fees applied. There is no change for items above the €150 threshold – international customers must still pay VAT and customs duties upon import to the EU.
From 1 July 2021
| Parcel value | Payable |
|---|---|
| Parcels €150 or less | Payable NEW:
|
| Parcels over €150 | Payable
|
Estimating the VAT for your EU customers
Estimating the VAT for your EU customers
Our international export tools can help you stay up to date with various shipping regulations and provide customers with accurate shipping information when they check out. These include a tax estimator that can be integrated into your eCommerce platform to help you estimate any applicable duties and taxes for your customers. You can access the suite of export tools via API integration or through our Parcel Send platform.
€150 threshold
Above the €150 threshold, international customers must still pay VAT and customs duties upon importation to the EU.
Preparing your business for the EU VAT e-Commerce changes
It’s important to understand how these changes will impact your business. Please carefully read through the VAT rules available on the European Commission website.
To ensure a smooth transition to the new VAT system, the EU has created a central electronic portal to help businesses pay their VAT online.
Learn more about the Import One-Stop Shop (IOSS).
