{"id":53790,"date":"2021-08-25T20:00:00","date_gmt":"2021-08-26T00:00:00","guid":{"rendered":"https:\/\/chitchats.com\/blog\/?p=53790"},"modified":"2024-09-19T12:40:51","modified_gmt":"2024-09-19T16:40:51","slug":"eu-vat-changes-upcoming-july-1","status":"publish","type":"post","link":"https:\/\/chitchats.com\/blog\/eu-vat-changes-upcoming-july-1","title":{"rendered":"EU VAT Changes Upcoming July 1"},"content":{"rendered":"\n

Changes to VAT for EU Shipments<\/h1>

Beginning July 1, 2021, online sellers and marketplaces will be responsible for collecting and remitting VAT charges on their shipments to buyers in the European Union. Read on to learn more about the upcoming EU VAT changes.<\/p><\/div><\/div>

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Update Aug 25, 2021<\/strong><\/p>\n\n\n\n

Requirements for Recipient Phone Numbers<\/h2>\n\n\n\n

As a part of new customs procedures for collecting VAT on shipments, recipient phone numbers are required <\/strong>for all shipments destined to an EU member country (see the full list of countries in the post that follows).<\/p>\n\n\n\n

Beginning July 1, you will be required to provide your recipient\u2019s phone number when creating shipments destined to the EU. <\/p>\n\n\n\n

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If you import your shipments using the Chit Chats API<\/a> or Chit Chats CSV<\/a>, the recipient phone number must be entered for the to_phone field or column H. Not including this information can cause your entire import to fail. You will then need to update the phone number information and attempt to import your shipments again.<\/p>\n\n\n\n

A failure to provide an accurate recipient phone number may result in additional customs delays, fees and the potential for non-delivery (meaning your shipment may either be returned to sender or destroyed).<\/p>\n\n\n\n

We understand that these updates come at very short notice and we ask for your patience while the shipping industry at large works together to adapt to these changes.<\/p>\n\n\n\n

IOSS Number Requirements<\/h2>\n\n\n\n

IOSS numbers will be provided to the sellers of online marketplaces such as Etsy and Amazon for their shipments beginning July 1. Additionally, it will be the responsibility of the seller to provide this information to their shipping partners for electronic submission to customs. A failure to do so may result in issues with customs clearance such as additional VAT or customs fees.<\/p>\n\n\n\n

New Field for IOSS Numbers<\/h2>\n\n\n\n

To accommodate the EU VAT requirement for IOSS numbers we\u2019ve added a new Customs Tax Reference Number <\/strong>field when creating shipments in your Chit Chats account. <\/p>\n\n\n\n

When describing the contents of your international shipment, you\u2019ll be asked to enter an optional Customs Tax Reference Number. This field should be used to include the IOSS number(s) for your shipments destined to the EU. It can also be used to include other customs reference numbers where needed.<\/p>\n\n\n\n

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If you import your shipments using the Chit Chats API or the Chit Chats CSV this new field will be labelled vat_reference (column Z).<\/p>\n\n\n\n

If you import your shipments using one of our store integrations, several of the online marketplaces we integrate with do not pass along IOSS numbers at this time. This means that you will need to add the IOSS number manually or by using our bulk editing<\/a> and presets<\/a> features.<\/p>\n\n\n\n

We are still working with our partners to streamline these processes for our clients. We truly appreciate your patience and understanding through this transition.<\/p>\n\n\n\n

Update June 28, 2021<\/strong><\/p>\n\n\n\n

We have received further updates from our partners in the industry regarding the upcoming changes for EU shipments. Specifically, there are additional shipment information requirements from EU customs agencies that you need to be aware of for your shipments. However, there are still many unknowns at this time. We continue to work closely with each of our international partners for the latest information about your shipments. <\/p>\n\n\n\n

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As a result of both Brexit and UPU changes, the European Union (EU) is now restructuring how imported shipments work. In January of this year changes to VAT for goods sold to the UK were implemented. Now changes will also apply to all EU shipments. Previously, all shipments under \u20ac150 were exempt from Value Added Tax (VAT). However starting July 1, 2021<\/strong>, VAT will now apply to all shipments, regardless of their value.<\/p>\n\n\n\n

To help streamline this change, all members of the EU will implement a new program called Import One-Stop Shop (IOSS). An IOSS number allows a seller to collect VAT on their items at the point of purchase which they can then remit to the appropriate EU member country at a later date. This helps packages clear customs borders faster and without collection fees. <\/p>\n\n\n\n

In addition to the IOSS implementation, shipments destined to the EU may also be required to include HS tariff codes<\/strong>. At this time, Chit Chats does not require HS tariff codes when creating shipments. Refer to this recent blog post<\/a> to find upcoming changes to customs requirements that take effect March 1, 2023.<\/p>\n\n\n\n

Key Definitions<\/h2>\n\n\n\n

Here are some important definitions to help you understand the upcoming changes:<\/p>\n\n\n\n

Value Added Tax (VAT)<\/a><\/p>\n\n\n\n