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Major changes to EU Value Added Tax (VAT) came into effect on July 1st 2021. At Parcel2Go, we know that change can be disruptive, so we’ve put together some useful top tips and guides to help you navigate these changes with ease.

For more detailed information, please select what type of sender you are:

Consumer Sender Business Sender

Sending to the EU - What has Changed?

From July 1st 2021, goods sent from the UK to the EU, regardless of the value, will now be subject to EU VAT. An exception to this is if you are not a business and you are sending a gift up to a value of £39/€45. For more information on what qualifies as a gift, see here.

New processes and systems have been put in place to help you manage these changes and pay EU VAT and customs charges easily. Below are the 3 options now available to you when sending a parcel to the EU.

 

  1. Import One Stop Shop (IOSS) has been brought in to make it easier and quicker for UK businesses and marketplace sellers to comply with new EU VAT obligations and continue trading from the UK to the EU.
  2. Delivery Duties Paid (DDP) has been developed to allow anyone not using IOSS to pay customs, duties and fees at the point of booking their delivery. This will provide recipients or buyers with a quicker, hassle free shipping experience.
  3. Delivery Duties Unpaid (DDU) is available if you are not using IOSS and choose to not use DDP. This option means your recipient will pay all customs, duties and fees before their parcel is released for final delivery.

A summary on these options can be found below. For more information, click on the consumer (for personal sending) or business (when sending as a business) links at the bottom of this page, which provide key details when sending internationally.

IOSS

  • IOSS is applicable for businesses and marketplace sellers sending UK goods to EU consumers up to a value of £135/ €150.
  • IOSS will save UK businesses, online sellers and their EU customers time and effort by dealing with VAT at the point of sale rather than the point of import/ prior to delivery.
  • Online Marketplaces are now responsible for EU VAT compliance on UK goods sold to EU consumers up to a value of £135/€150. You will be given an IOSS number by the marketplace which needs to be entered when booking your parcel.
  • For a more detailed guide on IOSS, see here.

There are two scenarios where IOSS is not a suitable option:

  1. You are a business or marketplace and you are sending goods valued over £135/€150.
  2. You are a general consumer, sending between the UK and the EU.

In these instances there are now two payment options available for paying EU VAT and customs charges:

1. Delivery Duties Paid (DDP)

DDP is where you pay all customs, duties and fees before sending goods to your recipient in an EU country. This is a much better option for your recipient, as it avoids them encountering any nasty surprise charges.

From July 1st 2021, DDP can be selected as a payment option on Parcel2Go during the order process. Applicable services will have a ‘Pre Pay Delivery Duty Available’ flag on the quote results page. Currently DDP is available on selected UPS and DPD International services.

Why Choose to Pay Taxes and Duties Before you Send?

  • Faster - Quicker processing at customs.
  • Cheaper - Charges are less than what the recipient would pay.
  • Better Experience - No charges for the recipient to worry about.

2. Delivery Duties Unpaid (DDU)

DDU is where your recipient in the EU pays all customs, duties and fees after their goods have arrived in the destination country.

In this scenario, local customs contact your recipient, who must pay any outstanding charges before their goods are released for final delivery. Parcels will be held by customs until payments are made. Any payments not received may result in parcels being returned, delayed or in some cases destroyed.


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