1. Removing the €22 VAT exemption for imports
The exemption for goods valued up to €22 no longer applies. Therefore, VAT will be charged on imports to the EU regardless of value.
VAT will apply at the rate of the buyer’s country of residence. It is different for every EU country: for example, Italy – 22%, France – 20%, Germany – 19% etc.
2. One-Stop-Shop (OSS) and Import One-Stop- Shop (IOSS)
OSS and IOSS. The EU will introduce two measures to assist e-commerce, two “one-stop-shop” procedures, which will allow e-sellers to consumers to account for VAT, without the need for multiple EU VAT registrations, from July 1, 2021.
a) One-stop-shop (OSS) will be applied firstly for EU countries. This OSS return is an extension of the existing EU MOSS system for digital services.
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