Do you ship products to the EU? Prepare now for the changes looming on July 1st
From July 1st 2021 there will be changes to shipping goods into the EU. For UK registered companies this means that there will be a few more considerations and paperwork to be finalized, specially around VAT.
Who will be impacted by the changes in VAT for importing into the EU?
B2C e-commerce imports – these will affect both businesses and consumers
What will happen?
Currently, items under 22 EUR are exempt from VAT. This threshold will be removed from July 1st 2021. This means that all shipments will then be subject to VAT and potentially formal customs clearance, making it likely packages will also take longer to arrive to their destination.
The EU is launching the Import One Stop Shop platform (IOSS). This platform facilitates the collection, declaration and payment of VAT. As a seller, you can register in one of the Member States and declare all VAT throughout the EU from there. This removes the need to register in each country you operate in, however, if you do not have an entity in the EU you will need to get an intermediary. Shipments with an IOSS number are likely to move quicker through borders.
How can I prepare if I sell products to Europe?
# Include a commercial invoice with all your shipments
# Get familiar with the EU platform IOSS to simplify VAT collection and decide if you want to register
# Speak to your marketplace about VAT handling responsibilities
# Consider how these changes will affect your pricing and be upfront with your clients. Consumers will not like surprises with additional charges later on
Communication with your customers and audience will be key. Make sure they are informed and not surprised by potential delays in the time it takes for your products to get to them. They might also be hit with additional hidden charges to be able to release their goods from the shipping company if you do not adapt your prices. We know shipping to the EU feels a bit uncertain at the moment, but a clear, honest communication strategy will at least ensure your customers will know what to expect and can be behind your brand during these changes. At Fluence We can help you with the messaging in a language and tone that will represent you and resonate with your audience.
If you are considering starting your journey to grow your business internationally, getting familiar with all the logistics will make the process easier. Do not underestimate the power of the language you use to talk to your new potential customers. The right language will really impact your success and set up in the new markets. Talk to us at Fluence Translations about how to start your journey with the right language to make a positive impact from day one!