Whether and how the new European Union Value Added Tax (EU VAT) reform impacts your business depends on the value of the goods you sell, whether you sell to businesses or consumers, and whether you use online marketplaces.
Goods with a value up to €22 will no longer be exempt from VAT. This impacts all businesses importing into the EU, whether you’re shipping to consumers or businesses. These low-value goods will now require formal customs clearance and be subject to VAT. You should consider how this will impact the price and margin of these products.
An Import One Stop Shop (IOSS) platform will be launched for business to consumer (B2C) businesses to settle VAT in the EU for goods valued up to €150.