EU VAT E-commerce Rules & Adjustments

What is EU VAT reform about?

1. From 1 July 2021, the VAT exemption for the importation of goods into the EU with a value not exceeding EUR 22 will be removed. And all goods imported into the EU will be subject to VAT.

2. A new special scheme for distance sales of business-to-consumer (B2C) goods imported from third territories or third countries of an intrinsic value not exceeding EUR 150 will be created and is referred to as the Import One Stop Shop (IOSS). If IOSS is used, VAT is not paid at the time of importation of eligible goods into the EU. VAT is paid by the customer as part of the purchase price (at check-out point).

3. The customs duty relief for goods with an intrinsic value not exceeding EUR 150 imported into the EU27 remains in place. That means that no customs duty has to be paid for goods in a consignment imported into the EU whose intrinsic value does not exceed EUR 150.

4. Import of goods with an intrinsic value of more than EUR 150 will still be operated in accordance with the previous import customs clearance mode.

5. VAT exemption before and after 1 July 2021

Source of the Explanatory Notes and Guides：https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

What will JLCPCB react to EU VAT reform?

1. JLCPCB will register IOSS VAT ID number and levy VAT for B2C customers’ orders with an intrinsic value not exceeding EUR 150 at check-out point.

2.  JLCPCB will declare and pay VAT to EU tax authorities on a monthly basis.

3. From 1 July 2021, in order to verify whether it is a B2B or B2C order, B2B customers will be required to provide the VAT number when placing an order.

Current situation:

1. JLCPCB has registered the IOSS VAT ID number on 9th, July 2021

2. All B2C orders with an intrinsic value not exceeding EUR 150 will be charged VAT at the check-out point.

3. As the VAT reform is still in initial stages, there may be some anomalies during the implementation. If customer who has prepaid tax (VAT) receives the tax payment notice from the logistics supplier, please refuse to pay and contact us.