Big changes in European VAT! Sellers' profits shrink by 20%! Just now, Amazon announced...

EU27 From 1 July 2021:

1. In these situations, Amazon needs to collect and remit VAT on sellers ’ B2C sales on the platform:

① The goods are shipped from an EU address to an EU buyer , but your (the sales partner’s) company’s registered address is not within the EU ;

② Goods shipped directly from non-EU addresses to EU buyers with a value not exceeding €150 are subject to specific customs declaration and labelling requirements.

2. Small imported parcels with a value of no more than €22 are no longer exempt from VAT. From July 1, 2021, all imported e-commerce parcels will be subject to VAT regardless of their value.

3. The existing threshold for distance sales within the EU will be abandoned and the new threshold will be €10,000 , applicable throughout the EU. This does not apply to sales outside the country of your company's registered address, nor does it apply to sales where Amazon is required to collect and remit VAT.

4. The EU will introduce an optional VAT declaration procedure called "Union One Stop Shop" ("Union-OSS") . With this simplified declaration procedure, sales partners with registered addresses in the EU can declare VAT for their distance sales throughout the EU in their member states.

Sellers should note that these changes will not affect sales or deliveries to B2B customers in the EU, where current VAT reporting requirements will continue to apply.

Sellers are still subject to VAT registration requirements in the EU countries where they hold inventory.