Update regarding the new EU VAT regulations from July 2021

Update regarding the new EU VAT regulations from July 2021

Jul 06, 2021 Tags 

What are the new VAT rules? 

 

As of July 1, 2021, the European Union has implemented new regulations regarding taxes on imports from countries outside the EU. All purchases made on websites based outside the European Union will be subject to VAT, even orders under 22 € which were previously exempt from this tax.

For example, if a person residing in France buys a product worth 10 € on a website based in Japan, such as ZenPop, he/she will have to pay 2 € of VAT (the VAT rate in France is 20%).

This VAT can be deducted in 2 different ways:
   1 - At the time of delivery, from the carrier. In this case, additional management fees are also charged by the carriers. Between 2 € and 8 € for the French Post Office (depending on the payment method, see the information on the Post Office website).
   2 - When purchasing on the website, in addition to the price excluding taxes of the products. This method will work for payments made from July 1st for stores registered on a special system in the European Union.

 

What about ZenPop ?

 

The team is actively working to implement the second method and register with IOSS. This is a time-consuming procedure and is not easy for small companies like ZenPop.

This law was originally intended mainly for purchasing on large e-commerce platforms. We will keep you informed of future changes.

In the meantime (for packages paid before July 1, but arriving in July), there is a chance that VAT will be charged on delivery.

This will depend on the degree of implementation of the new law during the month of July and the transition period. It is impossible to know exactly, but it is possible that you will have to pay VAT on all your packages in July, including ZenPop's.

 

Everything is not clear yet about the effects of this taxation, and there are still many unanswered questions.

The French Post Office has just put online a page on the subject, and more countries have done so too. We encourage you to visit your country of residence's postal service websites for more detailed information on the procedures.

We count on your understanding and support in the coming weeks concerning these new rules that affect us directly.

 

Some VAT in UE countries

 

  • Belgium 21%
  • France 20%
  • Luxembourg 17%
  • Spain 21%
  • Germany 19%
  • Italy 22%
  • Denmark 25%
  • Netherlands 21%
  • Ireland 21%