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Import and Export Manual for low value shipments

a. Elimination of the VAT exemption on the import of low-value goods and special regimes for the collection of VAT on imports

By eliminating the threshold of 10/22 EUR for the exemption of VAT on imports, from July 1, 2021 all goods imported into the EU will be subject to VAT, regardless of their value2.

Along with the elimination of the VAT exemption on the import of low-value goods, the legislation incorporates two simplifications to collect VAT on the import of shipments whose intrinsic value does not exceed 150 EUR :

  1. the Import Single Window Scheme (IOSS) , as set out in Title XII, Chapter 6, Section 4, of the VAT Directive, as amended by Council Directive (EU) 2017/2455; or
  2. the special regime , in accordance with the provisions of Title XII, Chapter 7, of the VAT Directive, as amended by Council Directive (EU) 2017/2455.

These simplifications cannot be applied to goods subject to harmonized excise duty at EU level (typically alcohol or manufactured tobacco, under Article 2(3) of the VAT Directive3). These goods are subject to excise duty in all Member States, although the applicable tax rates may vary in different Member States.

Single Window for Imports (IOSS) (import regime)

The first regime is a single window system for imports through which the supplier can fulfill all its VAT obligations (notification and settlement) in a single Member State, either directly or through a designated intermediary for this purpose. . The VAT paid by the consumer to the supplier at the time of sale is declared and settled directly by the supplier or its intermediary through a single monthly VAT declaration of the IOSS . Therefore, the import of goods into the EU is exempt from VAT. The IOSS is available to all sellers who make direct sales of imports to EU consumers from their own website, or from marketplaces or platforms that facilitate such deliveries.

The use of IOSS is not mandatory, although tax and customs incentives exist to encourage companies to use it.

Special regime for the declaration and settlement of VAT on imports

There is a second regime intended mainly for economic operators who present and declare low-value goods to the customs authorities on behalf of consumers, such as postal service operators, express transport companies and customs agents, when IOSS is not used. Under this scheme, called special scheme , VAT is due at the time of importation into the Member State of destination only if it has actually been collected from the importer (i.e. the recipient of the goods), in order to avoid onerous return procedures. These operators settle the VAT amounts collected from individual recipients corresponding to all imports made during a given month. This lump sum payment must be made to the competent tax or customs authorities before the end of the period applicable to the payment of import duties, in accordance with UCC .

2The exemption from VAT on import for shipments of gifts between consumers whose value does not exceed 45 EUR , in accordance with the provisions of the 2006 Directive /79/EC of the Council, will continue to apply. These shipments are occasional and contain exclusively merchandise reserved for the personal or family use of the recipients, and are sent free of charge and without any type of payment.

3 However, the import regime includes perfume and eau de toilette, although these products are excluded from the exemption from customs duties in relation to consignments of no estimable value [Article 23 of Regulation (EC) No 1186/ 2009 of the Council, relating to the establishment of a community regime of customs exemptions]. See section 4.2.3 of Explanatory notes on VAT .