This year has witnessed changes in regards to VAT and e-Commerce in Europe. The UK officially left the EU in January and many businesses are still feeling the impact of all the changes that came along with Brexit.
At the same time, everyone is being affected by the global pandemic and trading has seen a shift from physical stores to online shopping. On top of these changes, from July 1st, 2021, extensive new VAT rules will be implemented by the EU for e-commerce.
1. What’s new?
VAT will be charged on all commercial goods imported into the EU for all shipments with a value of EUR 150 or below. The VAT accounts for approximately 20% of the goods value and varies among different EU countries.
*EU countries are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. (including Northern Ireland).
2. Why these new rules?
- To facilitate EU cross-border trades;
- To ensure fair competition for EU suppliers;
- To combat VAT fraud.
3. How can PNC help you?
In order to reduce the amount of VAT you have to pay as much as possible, we will keep the order value on the package label to a minimum (~$5). Moreover, in case you have difficulty in paying tax, kindly contact us to receive our prompt support.
Thank you so much for your understanding. We really appreciate your sympathy and look forward to supporting you. We will always keep you updated. Please stay tuned! ❤️