On July 1st, the European Union reduced the threshold from € 22 to € 0 for application of VAT on goods sold from sellers located outside the EU to buyers located in the EU. While the EU has simplified the registration and filing process, allowing sellers to have one VAT registration, and filing across the EU (vs. in each individual country), the administrative burden, even at this level, will be too high for many sellers and its anticipated many will stop selling or not comply.
In the wake of this legislative change impacting the EU’s collection of VAT for shipments under 22 euros, the postal and shipping community must find a solution for the calculation, collection and remittance of tax for shipments into those countries. Direct sellers, marketplaces and shippers alike will be impacted, and it underscores how inextricably connected these industries are.
Download our on-demand panel to hear from experts at Taxamo, ShipperHQ, Adobe, and Mirakl, and they delve into the challenges brought on by these changes, and offer specific examples of what businesses impacted can do to alleviate administrative burden, stay in compliance, and free up time for more strategic initiatives.