Recently, the EU has implemented adjustments to its VAT rules and introduced the Import One-Stop Shop (IOSS) policy for e-commerce transactions.
What is IOSS?
1. The Import One-Stop Shop (IOSS) is an electronic platform that businesses have been required to use since July 1, 2021, to meet their VAT obligations for distance sales of imported goods. Prior to this change, goods valued up to EUR 22 were exempt from VAT when imported into the EU for commercial purposes.
However, with the new VAT e-commerce regulations, effective from July 1, 2021, this exemption has been abolished. As a result, all commercial goods imported into the EU from non-EU countries or territories are now subject to VAT, regardless of their value.
2. A new special scheme has been introduced for distance sales of B2C goods imported from non-EU countries or territories, with a value not exceeding EUR 150. This scheme, known as the Import One-Stop Shop (IOSS), allows VAT to be collected at the point of purchase, rather than at the time of importation. Under the IOSS, VAT is included in the purchase price and paid by the customer during the checkout process.
3. Customs duties remain exempt for goods valued under EUR 150 when imported into the 27 EU member states. This means that shipments with a value below this threshold will not incur customs duties, regardless of their origin.
4. Goods with a value exceeding EUR 150 will continue to be subject to the previous customs procedures, including the payment of customs duties.
Learn more: EU VAT E-Commerce Information
How Will Wellcircuits Adapt to the VAT Reform?
1. Wellcircuits will register for the IOSS VAT ID and will collect VAT on B2C orders with a value not exceeding EUR 150 during the checkout process.
2. Wellcircuits will declare and remit VAT to the EU tax authorities on a monthly basis, ensuring full compliance with the new VAT rules.
3. To distinguish between B2B and B2C orders, B2B customers will need to provide their VAT number when placing an order, starting from July 1, 2021.
Our IOSS payment method (DHL DDP) will be available soon, starting at the end of July. In the meantime, you can continue using the current shipping options available below.
If you have any questions about PCBs or PCBA, please feel free to reach out to us at info@wellcircuits.com
