EUROPEAN UNION (EU) VAT DE MINIMIS REGULATORY CHANGE OVERVIEW
GET FULL DETAILS ON WHAT THAT MEANS FOR YOU AS A SHIPPER AND RECEIVER
(A) Without IOSS (for B2C or B2B | any goods value)
(B) With IOSS (only for B2C | only for goods up to 150 EUR)
If you opt for NOT using the new (optional) VAT collection scheme known as Import One-Stop Shop (IOSS), you have the following options:
DHL pays VAT to Authorities upon import (and then DHL charges the pre-selected payer)
Importer pays VAT directly to Authorities upon import (via its own import deferment account)
If you are an online seller and opt for using the new (optional) VAT collection scheme known as Import One-Stop Shop (IOSS), the following applies:
VAT collected by the ONLINE SELLERat the moment of purchase (and ONLINE SELLER then pays to the local Tax Authority in EU via monthly VAT return)
- As it is today, if you pre-select to pay all DHL charges when booking a shipment (on behalf of your customers/ receivers of the goods), then VAT will be outlaid by DHL, and then charged back to you (together with other Customs-related charges if applicable).
- This ensures no charges to your customers/receivers of goods.
- This service is known as the DHL Duties & Taxes Paid (DTP) Billing Service – please contact your DHL representative for more information.
- IOSS removes the need to register for VAT payment in each EU country that you sell to (only for B2C goods up to 150 EUR), and a single IOSS identification number applies in all 27 EU countries.
- If you are not an EU-based seller, you must appoint an intermediary (such as a tax representative) to fulfil VAT obligations on your behalf.
- The IOSS registration is done by the online seller of goods. If goods are sold via an online marketplace, then the online marketplace is the one that can be IOSS registered and fulfil VAT obligations (and the IOSS number of the marketplace has to be provided in this case).
- Click here for additional information about IOSS
- If you opt for using IOSS, you must provide the IOSS identification number electronically to DHL with the invoice data so DHL can use it in the Clearance Process – otherwise, VAT will be levied upon the import of goods.
* European Union (EU) countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.