As an e-commerce retailer, have you prepared for the regulatory changes in the European Union starting July 1? With the introduction of the Import One-Stop Shop (IOSS) on that date, e-commerce retailers can ensure tax declarations and payments are performed for all parcels that are sent, although not applicable to consignments with a value of more than € 150.
The most convenient way to manage VAT obligations will be to register with the Import One-Stop Shop (IOSS). Registration in the IOSS can take place in any one of the EU member countries, usually the country in which most of your business transactions are based. E-commerce businesses can still opt for VAT to be collected from the recipient by the destination postal operator, courier firm or customs agent. However, administrative fees and delays are likely to result in a negative customer experience.
Additionally, e-commerce retailers must ensure diligence when screening for prohibited or restricted goods as well as shipping to denied parties. Failure to do so may lead to fines and even imprisonment.
The risks for not being ready or failing to comply with the changes can result in unnecessary work such as more complex customs clearance, significant delays at the EU border, confiscated parcels, high administrative fees, penalties and service disruption for persistent offenders, and longer transit times than expected.
Thus, it’s important to be ready before July 1, 2021 and reach out to those who are experts if you want guidance in this matter. For more information, see the section EU Directives on our Tools page.