EU e-commerce VAT services and advice from IOE&IT
Helping you navigate new EU rules on VAT
On 1 July 2021 major changes came in to force in relation to EU import VAT payable by many GB businesses including those that:
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sell online to consumers in the EU
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sell within the EU’s trading bloc of 27 member states
One key change affecting e-commerce goods in particular is that items imported into the EU with a value less than €22 (£15) are no longer exempt from import VAT. This measure means that all goods sent directly from GB businesses to consumers in the
EU will be subject to the local rate of VAT in the buyer’s state.
What you can do
If exporting into the EU, you can handle these new import VAT requirements via the EU’s Import One Stop Shop (IOSS) scheme.
For businesses trading within the EU, there is the One Stop Shop (OSS) scheme.
To report EU VAT via these schemes, GB businesses will require an EU VAT number obtained from an EU member state and may need to appoint an EU-established intermediary to fulfil their VAT obligations.
If GB firms trading with or within the EU don’t register for these schemes, their ability to continue such trade will be severely impacted.
Help from IOE&IT
The Institute of Export & International Trade is helping GB businesses, including e-commerce traders, take advantage of these schemes (listed left), smoothing any complexities.
This support ranges from sessions with our renowned Technical Helpdesk through to full consultancy to handle the necessary administration of registering in the EU.
Our advisors will help you:
 Maintain and grow your trade with the EU
Remain compliant with the new EU VAT rules
Routes to our EU VAT advice for you
1. Technical Helpdesk
If you are an IOE&IT Business Member, you can start your VAT journey with advice from our Technical Helpdesk.
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2. Training and consultancy
If your VAT situation is more complex, for instance if you trade within the EU between different member states, we have VAT training and consultancy packages to ensure you maintain and grow your business with the EU.
3. Registration service
IOE&IT can offer a fixed-price registration and representation service, allowing traders to register for VAT in the EU without complications, at a preferential rate to IOE&IT members.
From 1 July 2021, EU VAT reforms came into force:
- The EU has withdrawn its Low-Value Consignment Relief (LVCR), a tax relief that meant non-EU businesses did not pay import VAT on shipments with a value worth less than €22 (£15).
- As GB left the EU’s VAT system at the end of 2020, import VAT usually becomes payable at the point of entry into the EU.
- To save firms from having to register for VAT with every EU state they trade in, non-EU firms can opt to handle these new import VAT requirements via the EU’s Import One Stop Shop (IOSS) scheme.
- Under IOSS, sales are declared on a single return, removing the requirement for businesses to register in every EU member state they are selling to
- IOSS allows non-EU firms to register in just one EU member state rather than in each country they trade with
- To do this, they may need the services of a fiscal representative
- A One Stop Shop or OSS scheme is also being set up to put a single VAT regime (although not a single rate) in place for companies making electronic sales within the EU. This could affect GB
companies too: imagine a UK online seller with a customer in France supplied from a warehouse in Belgium.
- In both IOSS and OSS cases it is necessary to register for VAT in the EU, and for the IOSS, to appoint an EU established intermediary.
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