The European Commission has decided to abolish the VAT exemption for the importation of goods worth up to €22 and consumers will have to pay VAT on all goods purchased online from 1 July 2021.

What changes for consumers from 1 July 2021?

Although the price of purchases under €22 on non-EU websites may increase (by 17% for Luxembourg consumers), the impact of this new system should be positive for EU citizens.

Indeed, you may have had to pay taxes or import fees when buying from outside the EU. Under the new system, sellers outside the EU will be encouraged to register with an Import-One-Stop-Shop (IOSS) and the price displayed will be the final price including VAT and other import charges.

If the seller is not registered with the IOSS system, you will still need to be vigilant as VAT and other charges will be payable at the time of import.

In addition, also from 1 July 2021, goods up to €150 that are purchased outside the EU may be exempt from customs duties if the seller uses the IOSS system to declare VAT.

NB: Purchases made before 1 July 2021 will apply the old tax system and VAT and any additional charges may be claimed on receipt of your order.

ECC advices:
– Buy from sellers and platforms registered with the VAT One-Stop Shop / IOSS system.

– As it is not possible to check whether a seller is registered with the VAT Single Window, you should ask the seller or check whether the price quoted includes VAT and import taxes. If this is the case, the seller is probably using the IOSS system.