The EU’s new e-commerce laws came into effect from the 1st of July 2021. The legislation is complex and impacts every online seller with customers in the EU, but with a basic understanding of the implications of these changes, it can be quite simple to make the practical changes required to adapt.
If you run an e-commerce business that sells goods or services via your own website or an online platform (such as Amazon or eBay), staying ahead of rapidly changing VAT legislation can be enormously challenging.
Find out how Vatglobal can assist you with the EU’s new e-commerce laws:
01
Selling into the EU
How do you deliver your goods to the EU?
Drop shipping
Deliveries are considered drop shipments if no local fulfilment centre is used and there is no consolidation of stock in the EU. The item is imported from outside the EU and delivered directly to the customer in an EU country.
IOSS simplifies the collection and declaration of VAT for drop shippers. The IOSS specifically applies to goods valued at no more €150.
Local fulfilment
Modern e-commerce customers expect short delivery times and predictable, standardised delivery terms. For that reason, many e-commerce sellers rely on third-party logistics (3PL) partners to manage fulfilment.
The e-commerce One Stop Shop provides a single consolidated service to manage e-commerce VAT compliance.
FBA
Fulfilment by Amazon, more commonly known as Amazon FBA, enables sellers to store their goods in Amazon fulfilment centres. When a sale is made via the platform, Amazon then packs those goods and ships them to customers.
The e-commerce One Stop Shop provides a single consolidated service to manage e-commerce VAT compliance.
02
Selling into the UK
How do you deliver your goods to the UK?
Drop shipping
The UK has changed its rules for goods that are shipped directly to customers from outside the UK. If goods located outside the UK worth less than £135 are sold directly to UK customers then VAT will be charged at the point of sale.
Local fulfilment
Modern e-commerce customers expect short delivery times and predictable, standardised delivery terms. For that reason, many e-commerce sellers rely on third-party logistics (3PL) partners to manage fulfilment.
FBA
Fulfilment by Amazon, more commonly known as Amazon FBA, enables sellers to store their goods in Amazon fulfilment centres. When a sale is made via the platform, Amazon then packs those goods and ships them to customers.
03
Fast Lane
The Netherlands is the ideal point of entry for European imports. The country is optimally located and provides the best of all worlds in terms of institutions, regulations and infrastructure. No wonder the Netherlands has been described as the ‘fast lane to Europe’.
Why Fast Lane?
Navigating the complex bureaucracy of global trade is no simple matter. That’s why Vatglobal has developed a complete import solution that puts you on the fast track to the fast lane.
The Vatglobal Fast Lane VAT solution is the effortless way to minimise costs, eliminate delays, get your goods to market with unprecedented speed, and ensure you are always 100% VAT compliant.
04
vship
The vship app provides a tech-driven, international freight service that caters for a user’s individual needs. Managing the shipments is only the beginning: using Vatglobal and our network of partners, vship will help provide an end-to-end, outsourced solution including customs clearance, import VAT reclaim and tax compliance services as well.
Why use vship?
- Competitive Rates
- Premium Service
- Global Presence
- Supplier Relationships
Read our e-commerce blog posts to learn more on the latest e-commerce laws that will be implemented from the 1st of July 2021.
As a specialist company, our expertise in
international VAT compliance is unmatched.
As a technology-driven company, we ensure that expertise is supported by cutting edge digital tools
to make compliance faster and more efficient and eliminate human error. The ultimate effect is to render the
complexity of global VAT compliance simple, allowing our clients to focus on growing the core areas of their business.