On July 1, 2021, the rules for selling goods to the European Union changed. There is no longer a threshold for duty-free importation. VAT will be imposed on all goods under 150 euros sent from non-EU countries. The amount of VAT depends on the recipient country.
If the value of the goods is higher than 150 euros, VAT / duties / brokerage services are charged depending on the customs rules of the recipient country.
In case the goods were sold on eBay or Etsy, the tax code will be indicated in the order, which will let the EU customs know that VAT has already been paid. The eBay and Etsy marketplaces will immediately charge VAT on the cost of the goods + shipping.
We remind you that VAT is automatically charged by marketplaces if the value of the goods is up to or equal to 150 euros. If the value of the goods is higher than 150 euros, the customs will charge VAT, customs duties and brokerage services, regardless of where the goods were sold. In other words, in this case, the tax number will not be indicated in the warrant. Delivery is processed as usual and all duties will be charged at customs.
An example of an order with a number on eBay.
An example of an order with a number on Etsy.
In the Western Bid personal account, the function of adding the IOSS number of the marketplace is already implemented when making a delivery. You can find this number in the sales order in your personal account of the seller on the marketplace. The tax payment data will be displayed on the mailing label and will also be transmitted electronically to the customs of the recipient country. When making a delivery, we recommend adding your product to the external product if the marketplace has provided an IOSS number.
You don't need to create a listing on Lavky.com, just provide a link to the product you sold on Etsy or eBay. You need to create an external product in order to manually specify the same product price and shipping cost as in the Etsy or eBay order. If you use existing transactions, they will already contain the amount minus PayPal and Western Bid fees. Accordingly, the value of the goods indicated on the mailing label will differ from the value of the goods indicated in the sales order on the marketplace. To avoid questions from customs about why the amount is different, you should indicate the full value of the goods without deducting commissions by adding external goods.
If several lots with different IOSS numbers are sold in one transaction, it is enough to enter these numbers separated by commas in the appropriate field of your personal account when making a delivery.
If the goods are sold on Lavky or any other platform that does not automatically collect VAT and therefore does not provide an IOSS number, you do not need to specify this number at checkout. Some courier services currently do not send parcels to EU countries without an IOSS number. If you do not have a number, you need to choose another delivery method.
You can learn the rules for shipping goods to the EU via Ukrposhta here.
A useful recommendation: to reduce the time it takes for a parcel to pass through customs, you can stick a sticker with a large black IOSS mark on it, on which you need to indicate the website where the goods were sold and the IOSS number of the goods. Such stickers are issued in some European post offices when accepting parcels from sellers and, as practice shows, they really help customs officers to let parcels through faster. You can download such stickers for your parcels. Then you need to print them out, indicate the place of sale and the IOSS number on them, and then stick them on the parcel.