EU VAT & COMPLIANCE
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TRADE WITH THE EU FROM OUTSIDE THE EU
URGENT! New Import One-Stop-Shop (IOSS)
On 1 July 2021, the European Union introduced a new import VAT scheme called the Import One-Stop-Shop (IOSS) to simplify the import of low-value goods (under 150 EUR per unit), cutting costs and red tape for distance sellers and speeding up deliveries.
If you are distance selling goods valued under 150 EUR into the EU, IOSS is a veritable lifeline, saving you from exorbitant up-front DDP costs or from passing additional duties onto your customers. Take advantage of it right away and register for IOSS with EUify today!
START YOUR IOSS REGISTRATION NOW!
Digital Products & Services - One Shop Shop (OSS)
If you sell digital products or services to EU customers (B2C) you must charge VAT. To simplify this, you can use the new EU One-Stop-Shop's (OSS) Non-Union scheme to pay your VAT obligations. A single EU registration covers your VAT obligations in all 27 Member States!
EU Import VAT
When we were in the EU, British businesses didn't have to pay VAT on imports from the UK to the EU as the goods were already in the EU - they were not being exported or imported, but were simply moving from one Member State to another in the worlds largest single market.
Now that we are a so-called "3rd country" (non-EU Member), we are outside the single market and customs union, meaning that all goods arriving into the EU are subject to Import VAT on arrival unless special arrangements are made. The major consequence of this is the impact on your cash flow. Without a fiscal representative or your own EU company to apply for deferment, you have to pay all the VAT upfront.
All goods imported into the EU from the UK are subject to import VAT
Goods not originating in the UK are generally subject to import duties as well
As import VAT is due immediately on import, it can cause major cash flow problems for your business. Avoid this by applying for VAT deferment.
Do you have goods in one or more warehouses or fulfilment centres in the EU? Make sure you are VAT-registered in each country in which you hold your stock.
Intra-community triangulation supply is no longer available. Consider setting up a legal entity in the EU.
VAT Deferment: Fiscal Representative
In the Netherlands, it is possible to appoint a fiscal representative, so you can import goods into the EU without having to pay Import VAT, and defer your VAT obligations to quarterly VAT returns. If you're warehousing or using fulfilment centres like Amazon, eBay or Etsy, this can have a considerable effect on your cash flow!
One Stop-Shop (OSS)
The One-Stop-Shop (OSS) is for goods already in the EU for delivery to EU consumers. For non-EU businesses, these would normally be goods imported in bulk into EU warehouses or fulfilment centres. One EU registration covers all EU Member States via quarterly VAT returns
Non-Union Scheme for Digitial Products & Services
If you sell digital products or services to EU customers (B2C) you must charge your European customers VAT. To simplify this, you can use the new EU One-Stop-Shop's (OSS) Non-Union scheme to pay your VAT obligations. A single EU registration covers your VAT obligations in all 27 Member States.
On 1 July 2021, MOSS ceased to exist and was incorporated into the new EU-wide OSS (One-Shop-Shop). Contact us to get registered.
VAT, or BTW (Belasting Toegevoegde Waarde) as it is known in the Netherlands, is currently set at 21%. There are some exceptions to the otherwise mandatory VAT registration for Dutch companies, but one of the major advantages of an EU company is administrative simplifications with an EU VAT registration.
If you’re moving goods between the UK and EU or vice-versa, you are required to register for an EORI (Economic Operator Registration Identification) number.
Without a valid GB or EU EORI number (UK EORI numbers start with ‘GB’, Dutch ones start with ‘NL’), your goods will not clear customs authorities regardless of your VAT status.
VAT / IOSS / OSS Returns
We'll perform your quarterly VAT (BTW) returns on your behalf, while keeping you updated on rules and regulation changes.
New Market Surveillance Regulations
Since 16 July 2021, it is illegal to sell CE-marked products in the EU without an EU based economic operator.
Market Surveillance Regulations were introduced to protect consumers from potentially dangerous or harmful products entering the EU and to ensure fair competition for EU members.
This will affect the UK and other 3rd country companies selling into the EU via fulfilment centres or on marketplaces like Amazon, eBay, Etsy etc, especially those selling products required to bear the CE-Mark.
Some of the product categories affected include:
Personal protective equipment
Recreational and personal watercraft
For compliance, you are required to have an economic operator established in the EU, to be responsible for product regulations & conformity.
With independent representation or your own EU entity, you’re covered in all EU Member States for distance sales, not just on service level platforms like Amazon or eBay.
EU Fulfilment & Warehousing
Before registering an EU VAT number, the first thing you need to think about is where you would like to be based, physically or virtually, or just for VAT purposes. If you hold any stock or inventory in an EU Member State, you have an obligation to register for VAT there. This includes Amazon fulfilment centres and any other third-party warehouses. There are no tax registration thresholds for you in this case: the physical presence of your business operations automatically requires you to be VAT-registered (if you hold stock in several EU countries, then you must register separately in each Member State in which it’s held).
Established by British entrepreneurs, EUify is an EU trade and management consultancy based in The Hague, focusing on a wide range of business and fiscal solutions to get your business trading successfully in the EU again; From setting up your company and administration to Fiscal Representation, EU VAT, IOSS, OSS, fulfilment, registrations and compliance, we have the experience and the optimal trading solutions for you.
With EUify we can get you trading competitively in the EU again, boosting your profits within the world's largest single market. Our pricing is transparent and most importantly, you can pick up the phone and talk to a human when you have questions or need support!
Don't let your competitors take over, EUify your business today!