Like many things since Brexit, answers are rarely straightforward and without knowing your Incoterms and consignment details, it's difficult to be precise.
If you import into the EU from the UK you don't necessarily need an EU EORI. However, with the possible exception of the well known courier companies, many carriers will not take bookings for consignments unless GB and EU EORI's are in place.
This is largely for fear of delays and customs issues at destination, not only for the shipment in question but also for all the other shipments on the same trailer, assuming its a groupage trailer.
So, if your consignment is suitable to ship by courier, you should be able to arrange this ok. Once the shipment arrives at destination the courier company will arrange customs clearance and a fee will be charged for this. VAT must also be paid plus any import duty applicable, if the value of the goods exceeds 150 EUR. It's very likely the EU customer will have to pay all these charges before delivery is made, which is where and why you may get a delay.
The new IOSS (Import One Stop Shop) scheme may be a way forward for you. Under the scheme, you charge VAT to the EU customer at the point of sale and report and pay this VAT on a monthly IOSS return. Below is a previous post that may be helpful to you.
Since Brexit, if you ship to a customer in an EU country, local VAT or its equivalent must either be prepaid or more likely paid on arrival by the receiving customer, along with a charge for customs clearance from the carrier.
This is why someone in Germany could get a big surprise when ordering a product on Amazon with a value of say 20 euros and ends up having to pay German VAT and customs charges of say 50 euros before the courier will deliver the parcel.
From 1st July, you can sign up to
The Import One-Stop Shop (IOSS) scheme that now applies to ALL goods being sold into the EU with a total consignment value under €150. However the EU has also removed the €22 import VAT exemption, meaning ALL businesses not using IOSS will have to pay import VAT on arrival on ALL goods being sold into the EU.
FAQ's:
1. Is VAT due on ALL imports into the EU after 1 July 2021?
Yes, as of 1 July 2021 the EU ended its low-value consignment relief threshold of €22, which means ALL goods going into the EU will attract VAT for either the buyer or the seller.
2. What is IOSS?
The Import One-Stop Shop (IOSS) is a simplified reporting model where you register in one location for the sales you make to EU consumers in the 27 EU member states, where the consignment value of the goods shipment is below €150. This creates a more efficient ‘Green Channel’, with quick and easy customs clearance., but you must display the amount of VAT paid by the buyer in the EU, by the time the ordering process is finished. You will need to produce an invoice showing the price paid by the buyer in EUR and this will need to be provided alongside your IOSS number, during the customs declaration process. This allows the import VAT to be exempt from payment, when the goods pass through EU customs. You then report the VAT you collected at point of sale in the new monthly IOSS returns.
3. What is the significance of the €150 threshold on consignment value?
VAT is now due on ALL goods shipped into the EU but once the value of goods are above €150 there could also be extra duties that would be applicable on top of the local VAT. There are many things, like the origin of goods, that could affect whether duty is required to be paid.
4. Are businesses required to charge VAT when goods are sold from non-EU locations like the UK, directly to consumers?
Yes, but the answer largely depends on the Incoterms/model you are planning to use. There are currently two popular models but with the introduction of IOSS there is now a third.
- Delivery At Place - You are not required to charge VAT to the customer as this will be borne by the customer before they are allowed to receive the goods.
- Delivery Duty Paid (DDP) - Businesses usually charge but it’s not mandated to show the customer the charges when following this model
- Import One-Stop Shop (IOSS) - Businesses must charge and show the VAT amount they are charging to the customer
Hope this helps....
