EU VAT

The European Union (EU) has made important changes to its value-added tax (VAT) rules, which came into effect on July 1, 2021. This impacted businesses that sell across EU country borders (also known as distance sellers) and businesses exporting goods to buyers in the EU.

What are the changes for businesses exporting goods to buyers in the EU?

• All orders shipped to the EU are now subject to VAT. As of July 1st, 2021, buyers are required to pay VAT and no duties on all cross-border purchases of goods up to €150. On orders above this threshold, both duty and VAT would apply.

• One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) filing. Merchants or other VAT liable entities can use the newly introduced OSS/IOSS portals to file a single monthly EU VAT return.

• Deemed supplier. Marketplaces and cross-border facilitators are liable to collect, file and pay VAT on some orders shipping to EU destinations.

How does the change affect Glopal and its merchants?

From July 1st 2021, Glopal is considered as an Electronic Interface. It means Glopal is collecting, declaring and paying VAT on behalf of our non-EU merchants in some cases.

Glopal is not liable when goods in consignment >150EUR are dispatched from non-EU into EU, instead, carrier will fulfill the customs and tax clearance requirements.