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14
07
2021

Good news for e-shoppers: VAT can be paid immediately along with the purchase on many shopping platforms

In order to simplify ordering from third countries to the European Union, from July, many shopping platforms will enable the option to pay the VAT of goods costing up to 150 euros immediately when making the purchase. This means that once the parcel reaches the EU, the recipient does not have to pay additional VAT.
 
From 1 July 2021, a VAT amendment is enforced across the EU, which means that parcels costing up to 22 euros and arriving from outside of the EU are no longer exempt from VAT. Similarly to parcels costing more than 22 euros, these too must now be declared when they reach the EU and VAT must be paid, if it cannot be paid immediately along with the purchase.
 
‘For example, AliExpress, Wish, and Joom joining the import one-stop shop (IOSS) scheme offers a great advantage not just to those ordering parcels costing less than 22 euros, but also makes it easier to purchase items costing 22–150 euros,’ said Marita Mägi, Head of Omniva’s international segment. ‘Before July, people ordering parcels costing 22–150 euros had to fill in a declaration and pay the VAT when the shipment arrived, but now, they can do it right away when making the purchase. This solution is, of course, welcomed by everyone ordering parcels costing less than 22 euros, for whom the declaration and VAT paying process would be something new – now, they do not have to deal with that.’
 
However, when arriving in the EU territory, shipments sold through the IOSS scheme must also be declared. If an undeclared IOSS parcel reaches Omniva for free circulation, Omniva will take on the declaration process and the customer will not have to worry about it – the package will reach the customer without any additional actions or costs. However, it is very important that the electronic information of the shipment contains the correct IOSS number indicated by the consignor. ‘This is the key that confirms to the Estonian Tax and Customs Board that it is a reliable consignor who has collected VAT at the time of sale of the goods and allows the shipment to be declared without requiring additional fees,’ Mägi explained.
 
Customs duty is added to goods costing more than 150 euros and these goods must still be declared by the recipient and import duties must be paid when they arrive in the EU. The IOSS scheme, in which VAT on purchases of less than 150 euros is collected immediately along with the purchase, has been or is being implemented by most major purchasing platforms.
 
AliExpress, Wish, and Joom offered the opportunity to pay VAT along with the purchase already at the beginning of July. This means that in the case of all goods purchased after that time, the buyer does not have to take additional action when they arrive in Estonia – Omniva takes care of the declaration and the customer receives the package without additional action.
 

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