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Who is affected?

All players in the e-commerce supply chain are affected, from sellers and marketplaces/platforms, both within and outside the European Union, to postal operators and courier companies, customs and tax authorities in the various Member States of the European Union, and consumers.

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Postal operators and couriers

(This information is also of interest to freight forwarders, logistics service providers and customs agents.) The huge rise in e-commerce and distance sales of goods has meant that the roles and responsibilities of postal operators and couriers have changed dramatically, if only because of the sheer volume of purchases consumers now make online. Currently, low-value goods are exempt from VAT when imported into the EU. However, there is no similar exemption for sales of small value goods within the EU. To address these differences in VAT taxation that lead to loss of public revenue and to overcome obstacles to cross-border online sales, the VAT regulations on e-commerce are being amended.

The new regulations on the VAT in e-commerce provides a simple and uniform set of rules for all companies that carry out cross-border e-commerce, whether from within or outside the EU This harmonization will create a level playing field for all businesses and provide opportunities for significant increases in intra-Community trade.

At the same time, all commercial goods imported into the EU will be subject to VAT, regardless of their value, meaning there will no longer be an exemption for imported goods with a value of up to 22 euros. Sellers and online marketplaces/platforms that make remote sales of imported goods to customers in the EU for a value not exceeding 150 euros can use the new special Single Window scheme of Import (IOSS) to declare and pay VAT. In this situation, the responsibility for collecting the VAT will not fall on postal operators and couriers

Sellers and online marketplaces/platforms using the IOSS will need to provide the necessary information for customs clearance in the EU, including the identification number of the VAT of the IOSS. E-marketplaces that are not involved in the dispatch or transport of the goods will provide this information to the seller, agreeing to strict rules on the use of their seller identification number. VAT IOSS, including its communication to the carrier and/or the customs declarant.

This is necessary to avoid the charge being made. VAT on imports and, therefore, to speed up the release of goods for free circulation. The end result should reduce stress at this critical stage of the supply chain. Postal operators and courier companies will not have to check, and indeed cannot check, the validity of this number. VAT of the IOSS, but it is important to know the change in procedures.

For sellers or marketplaces/platforms that do not register with the IOSS, the competent authorities will collect the VAT on the import of small value goods, just as it is now collected VAT of the highest value goods at customs. EU customers will only receive purchased goods after paying VAT.

Postal operators and courier companies may also charge an additional dispatch fee to the customer for the collection of the VAT and the completion of the necessary procedures at the time of importing the goods. This means that, as customers of the EU are used to prices with VAT including, paying additional fees at the time of import could cause the customer to reject the package in question.

Postal operators and courier companies can resort to a simplification according to which the VAT The client's fee is collected and paid monthly. This simplification offers them a cash flow advantage to offset the additional packages that will require customs clearance, which will entail increased administrative work.

It is important to communicate these changes to your company's customers and encourage adoption of IOSS so that everyone can benefit from the simplification of the system.

The new rules will provide:

  • Major property: As key players in the transport and distribution of goods, postal operators and couriers are on the front line when it comes to declaring goods at customs.

  • A faster process: The new rules, including the adoption of electronic data transmission, are ultimately intended to simplify procedures and ensure faster customs clearance so that postal operators and couriers can deliver goods more quickly to their customers.