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VAT management services for sales to the EU

Charge VAT to EU customers and report them via IOSS

The way that UK businesses need to manage VAT on exports to the European Union (EU) has changed since Brexit and the EU’s new VAT rules for international e-commerce came into effect. Our innovative VAT management services help your business adapt to the changes so you can continue selling to customers across the EU with the same ease as before.

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A lot has changed since Brexit and the 1st of July changes to the EU VAT rules.

This year, UK-based businesses have had to adapt more than once to new rules and regulations caused by the changing trade relations with the European Union. This has come with a number of operational challenges, including more complex customs clearance and different VAT requirements for sales to the EU. 

What are the new VAT rules for exports to the EU?

On the 1st of July 2021, the European Union changed its VAT rules for e-commerce businesses outside of the EU. Since Brexit, these rules apply to UK businesses as well as other countries that aren’t a EU member state. 
  • Goods valued under €22 are no longer exempt of VAT. UK businesses must now pay VAT on all goods sold to customers in the European Union, regardless of their value. 
  • Online marketplaces that are deemed suppliers are now liable for VAT. They must now collect, report and remit the VAT due from the consumer on behalf of their third-party sellers. 
  • All UK webshops and online marketplaces that ship to the EU now need to partner with a VAT intermediary. This VAT intermediary will act as their VAT representative in the European Union. 
  • All non-EU businesses that ship to the EU must register for the Import One-Stop Shop (IOSS). IOSS allows UK businesses to manage, report and pay all the VAT they’re due within the European Union in one place.

1. Find a VAT intermediary

Spring GDS can suggest specialist VAT intermediaries in Europe who can help you manage VAT in the EU. Contact our team to talk though the options.  

2. Register for IOSS

Your VAT intermediary can help you register for the Import One-Stop Shop (IOSS) and get an IOSS identification number. This will help you to digitally collect, declare and pay VAT on sales to any European country. 

3. Calculate VAT at checkout

Install our Landed Cost Calculator on your webshop so that EU customers can calculate and pay the VAT and duty due at checkout. This way, they won’t need to pay any unexpected costs upon delivery. 

4. File your VAT returns

Filing your VAT returns in the EU is easy with the help of your VAT intermediary and the Import One-Stop Shop (IOSS). As all your VAT data has already been tracked, it just needs to be checked before you click ‘submit’. 

Outsource the VAT management process

Let our UK-to-EU shipping experts set you up for success in selling to the European Union.

You don’t need to navigate the international e-commerce changes on your own. Get in touch with a cross-border shipping expert to see how we can help you to comply with the new VAT rules and grow your customer base in the European Union.

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