1. Home
  2. Inventory
  3. EU & UK eCommerce VAT Package & OSS Requirements

EU & UK eCommerce VAT Package & OSS Requirements

Effective July 1, 2021, the EU will begin enforcing the VAT eCommerce package, which includes new rules regarding eCommerce and VAT. These rules will have an immediate effect on all businesses in the supply chain such as individual sellers and marketplaces. All distance sellers within the EU or trading with the EU will need to redefine their VAT requirements after July.

For more information about this change, please reference the European Commission Website: https://ec.europa.eu/taxation_customs/online-sellers_en.

An overview of the changes that are taking place

  • Removing the distance selling thresholds for sales of goods and setting a unified threshold of 10.000 euros
  • Expanding the Mini One Stop Shop (MOSS) by launching the new One Stop Shop (OSS)
  • Ending the low-value import VAT exemption and introducing the new IOSS
  • Online marketplaces will be deemed the seller for collecting and reporting VAT
  • New record-keeping requirements will be introduced for online marketplaces facilitating supplies of goods and services
  • Special arrangements in order to simplify imported goods with a value of less than €150 in case the IOSS (import one-stop-shop) is not used

What does this mean for me as the merchant?

It’s your responsibility to provide all VAT information to fulfillment@shiphero.com or your onboarding specialist when setting up your Fulfillment account. Please reach out to us if you need to add this or make any changes to your VAT settings. We’re here to help!

Updated on September 7, 2021

Was this article helpful?

Related Articles