Latest changes to VAT import regulations for the EU

Changes to VAT import regulations for EU in 2021

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.

Formerly applicable rules and thresholds on VAT exemption for import into the EU and cross-border sales in the EU are now abolished.

See if you need to take any actions

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.

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.

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.

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.

Changes to VAT for EU Buyers from February 7, 2023

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