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Import and Export Manual for low value shipments

3.1.5. Exchange rate

When the supplier or electronic interface opts for the import regime, all distance sales of imported goods not exceeding 150 EUR must be declared in IOSS . However, the IOSS, despite all its advantages, does not apply to sales of goods with a value greater than €150. In order to determine whether the IOSS applies to a particular sale, the supplier or electronic interface must use the exchange rate established by Article 91(2) of the VAT Directive (the daily exchange rate published by the European Central Bank) applicable on the day payment was accepted, regardless of when the goods are actually imported into the EU .

At the time of import, the EUR 150 threshold is checked again for customs purposes, this time using the applicable exchange rate to determine the customs value, i.e. the exchange rate valid at the time it is accepted the customs declaration for release into free circulation. The latter is established the previous month and applies to all imports that take place in the current month.

In order to avoid situations where a price below EUR 150 at the time of delivery exceeds the threshold of EUR 150 at the time of import, it is recommended that the seller or the electronic interface using the IOSS indicate on the invoice that accompanies the shipment the price in euros that was determined at the time payment for the goods was accepted. This value will be accepted by the customs authorities at the time of import of the goods into the EU and, thus, a possible double taxation of VAT on import will be avoided.

In the event that the importing Member State uses a currency other than the euro, it is recommended that the Member State accepts the amount indicated in euros on the invoice as noted above, for both customs and tax purposes.

Examples:

1. Distance sale of goods under the IOSS regime whose end-use is Germany and which enter the EU through Poland where they are declared for release into free circulation. The invoice accompanying the shipment is issued in euros and the Polish customs authorities accept the value in euros.

  • It is not necessary to convert the invoice amount from euros to the national currency for the purpose of checking whether the shipment qualifies for duty free, the IOSS and the H7 data set can be used.
  • To calculate the VAT to be paid, the monthly rate of article 53, paragraph 1, letter a) must be applied in the declaration process (on the penultimate Wednesday of each month, starting from the first day of the following month) and the amount of the invoice must be converted to national currency.

2. Distance sale of goods under the IOSS regime whose end-use is the Member State « A » and which enter the EU through the Member State « B » where they are declared for release into free circulation. The invoice accompanying the shipment is expressed in USD .

The submission must be verified to meet the conditions for the IOSS and the H7 data set. This check is carried out by converting the invoiced amount (USD) to the national currency using the exchange rate valid at the time the customs declaration is accepted for release into free circulation [for example, the exchange rate based on Article 53(1)(a) of UCC and Article 146 of AE UCC ]. This converted amount which is now expressed in the national currency should be compared with the euro value converted into the national currency of the non-euro area Member States calculated on the basis of Article 53(2) of the UCC and Article 48, section 2, of the EA UCC (annually).

Example

Distance sale of goods under the IOSS regime whose end-use is Hungary. Goods enter the EU through Hungary, where they are declared for release into free circulation. The invoice accompanying the shipment is expressed in USD.

To check whether the shipment meets the conditions necessary for the use of the customs declaration with the H7 data set, the invoiced amount (in USD) must be converted to the Hungarian currency ( HUF ) using the exchange rate in force at the time the customs declaration is accepted for release into free circulation (the exchange rate is established in the previous month and applies to all imports that take place in the month in question). The next step is to compare the amount converted into HUF with the annual threshold value expressed in HUF corresponding to the threshold of 150 EUR. If the amount converted to HUF is less than the annual threshold, the customs declaration with the H7 data set can be used. To calculate the VAT payable, the exchange rate in accordance with Article 53(1)(a) UCC and Article 146 EA UCC must be used (the exchange rate is set in the previous month and applies to all imports that take place in the month in question).

If the invoice amount is expressed in a foreign currency and, at the time of importation, the conversion is around 150 EUR, it is recommended that the customs authorities adopt an appropriate strategy to control the intrinsic value of 150 EUR. See chapter 4, question 21, of the Explanatory Notes on VAT.