VAT import regulations for the EU
On 1 July 2021 the VAT collection regulations on e-commerce in the EU changed. Since then, eBay collects and remits VAT on goods which are sold in the EU based on seller location, consignment value and item location.
The rules and thresholds which previously applied to imported goods or cross-border sales within the EU no longer apply.
Sellers are not required to provide additional information when listing the item.
See if you need to take any actions
Orders up to €150 (VAT is collected by eBay)
After 1 July 2021, for orders up to a consignment value of €150 imported into the EU, always provide to your carrier the Import One-Stop Shop (IOSS) number provided by eBay on the shipping label. The IOSS number will be available in eBay order in the field Consignee Address. Please note: IOSS number needs to be shared electronically, just putting on the label doesn't work.
IOSS (or Import One Stop Shop) — is a taxation process for the European Union. It means that buyers are charged with VAT while they make an order, and the funds are sent directly to the authorities. This makes the process of passing the customs more easy and effective, and clearer for the buyer.
Otherwise your buyers may have to pay VAT again on delivery. For transactions where eBay has collected VAT, eBay will issue an invoice to the buyers confirming the VAT amount charged and showing eBay’s IOSS number. If the buyer is asked to pay VAT again on import of the goods into the EU, please inform the buyer to check the invoice and share it with customs. You can also share the order details with the buyer where eBay’s IOSS number and the VAT amount collected by eBay will be visible.
Orders over €150 (VAT is not collected by eBay)
For orders above the consignment value of €150 eBay will not collect VAT, and the buyer will have to pay it on the shipment delivery.
Please note: this exclusion does not apply in France. For deliveries to France, eBay will collect and remit VAT in all cases, both above and below the threshold of €150.
EU sellers with total sales over €10,000
If you:
- are established in the EU,
- ship ALL your goods from within the EU,
- make sales to non-VAT registered buyers in any of the EU countries,
and the combined total of these sales exceeds €10,000, you will need to collect VAT in all EU countries based on the delivery address. To do this, you will either have to register for VAT in each of the EU countries where you make sales, or use the EU VAT One Stop Shop.
Please contact your tax adviser on the matter of VAT accounting treatment when filing tax returns.
VAT regulations for Digitally Delivered Goods
From February 7, 2023, eBay collects VAT for Digital Delivered Goods (DDG) sold on eBay to buyers located in the EU. eBay remits this VAT to the appropriate Tax Authorities via EU OSS system.
- This change applies to DDG sold on eBay to EU private buyers, regardless of where the seller is based.
- The VAT rate that applies is based on the buyer’s country of residence
- There is no threshold — this change applies for all sales to private buyers. The logic behind collect & remit on DDG is the same as on physical import goods.
What is included in the scope of DDG?
DDG in scope include:
- Downloaded software or books
- Streamed content
- Digital content
- Digital games
- NFTs
DDG not in scope:
- Digital gift cards and certificates with a face value & undetermined location/Application
- Warranties
- CO2 Offsets
FAQs
What is IOSS?
IOSS (or Import One Stop Shop) — is the EU taxation process for the European Union. It means that buyers are charged with VAT while they make an order, and the funds are sent directly to the authorities. This makes the process of passing the customs more easy and effective, and clearer for buyers.
What is an IOSS number?
According to the regulation, eBay as a marketplace registered in the IOSS system collects VAT from the buyer if an item cost is up to €150, and gives an IOSS number to the seller. For customs it means that the buyer already paid the tax and they don’t have to collect it.
You also need to know:
- IOSS number should comply with the marketplace which collected and remitted VAT for your orders sent, — otherwise it will stuck at EU customs
- For orders above €150 eBay will not collect VAT, and the buyer will have to pay it on the shipment delivery*
- If you need more info on how your shipping company works with the IOSS, please reach them directly to clarify
* Please note: this exclusion does not apply in France. For deliveries to France, eBay will collect and remit VAT in all cases, both above and below the threshold of €150.
How can I find the IOSS number and what should I do with it?
The IOSS number will be available in eBay order in the field Consignee Address. It should be input in your shipping label.
What if I don’t use the IOSS number?
In this case, your buyers may have to pay VAT again on delivery. For transactions where eBay has collected VAT, eBay will issue an invoice to buyers confirming the VAT amount charged and showing eBay’s IOSS number. If your buyer is asked to pay VAT again on import of the goods into the EU, please inform them to check the invoice and share it with customs. You can also share the order details with your buyer where eBay’s IOSS number and the VAT amount collected by eBay will be visible.