A new set of rules based on the EU Directive 2006/112/EC
that affects online cross border business to customer (B2C) sales
is in force as of July 2021. The new rules, briefly discussed
below, aim to simplify the online shopping experience for both
sellers and consumers using digital tools and platforms.
Prior to the new directive, packages valued up to €22
imported to EU were exempted from VAT but this rule has
been abolished and as from 1 July 2021, all commercial goods
imported in EU are now subject to VAT regardless of value.
For goods valued €150 or below, VAT can either be charged
at the time of the sale by using the new Import One-Stop Shop
(IOSS) or be collected from the end-customer by the customs
declarant. These changes affect business-to-consumer (B2C) sales
imported from third territories or third countries to EU
customers.
