Update regarding the new EU VAT regulations from July 2021

Update regarding the new EU VAT regulations from July 2021

Sep 23, 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 ?

 

ZenPop was registered with the IOSS as of September 2021. 

The additional VAT required by EU countries was added to your shipping cost, and will be paid by ZenPop to European customs. Therefore, our customers will no longer have to pay the VAT separately as well as an extra processing fee for their packs upon reception for all packs shipped after October 1st.

This resulted in a $2 USD increase for all shipping methods to countries within the EU.

 

Some VAT in UE countries

 

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