Information regarding European Union Value Added Tax (VAT)
The European Union has announced that imports to the European Union
arriving on or after July 1st 2021 from non-EU retailers must register with the
"Import One Stop Shop" (IOSS) and collect VAT, ranging from 17% to
27% depending on the country. Again, like the U.K., there is no exemption
offered to small businesses with low annual sales to the EU. The latest information I have can be found on the European Commission web
site:
See https://vat-one-stop-shop.ec.europa.eu/index_en
If your order exceeds 150 Euro (approx. $175 USD) before
postage, VAT is collected from you upon delivery. Place your order, I will remove the "eBay
Fee", "Capture" the remaining payment, and mail directly to you.
Be aware, your customs service will
still collect VAT, but will do so directly from you upon delivery. Additional processing charges may apply.
However for orders below 150 Euro (approx. $175 USD) before
postage, the new rules apply. I have found that I can fulfill these smaller orders for my EU
customers through eBay, and eBay will collect, account for and remit the VAT
for me. The process is as follows:
1. You place your order on my site as
normal. My site will estimate postage and a 10% "eBay Fee" to
partially cover eBay's various fees. This eBay fee should be for product, postage
and VAT, but my site can only calculate on product. More on this in step 3
below. 2. You can indicate "Mailing Cheque
or Money Order" for payment. I will "VOID" any credit card or PayPal
payment offered. 3.
I
will create a custom 'Buy it Now' item on eBay, which will be priced to include
everything in your order plus the 10% "eBay Fee" mentioned in step 1.
This Fee will be calculated on Product and Postage, and will be slightly more than my site
calculated in step1, as my site cannot include shipping or VAT in the
calculation. 4.
I will send you a link to your order via email. 5.
You then "Buy it Now" through eBay. eBay
will recalculate shipping, and experience shows it is usually about 8% less
than what my site calculates. eBay will also calculate and add the VAT, giving
you a final total. 6.
You complete your purchase and payment on eBay. eBay
will notify me once you have completed this step. 7. I will then invoice and ship your
order. I do not collect the VAT, however
it will show on your invoice as “Collected by eBay”. Finally, The reason for the "eBay
fee" is that eBay extracts a "Final Sale Fee" of 13.25% plus a 1.65%
“International Fee” calculated on Product, Shipping, and Taxes (i.e. VAT), plus
a flat $0.40 “Final Value Fee”. I am asking my EU customer to pay the first
10%, I will pay the rest. This process has now been tested many times with several customers, and
it has worked very smoothly. I share your dislike of having to jump through the
eBay hoop, and the added expense involved, but as I have no desire to play
"Tax Collector" for the EU, this is the best option available at this
time.
Thanks !
|