European Union value added tax (VAT) IOSS ready
Value Added Tax (VAT) in the European Union – Essential Information
Since July 1, 2021, new VAT rules have come into effect in the European Union to simplify cross-border e-commerce and ensure fair tax collection. Here’s how these changes apply to orders placed on our website.
1. Orders of €150 or Less (Excluding Shipping Fees)
For orders with a total value not exceeding €150, the applicable VAT is collected directly on our website at the time of payment.
- You pay the VAT when finalizing your order.
- No additional VAT fees will be requested upon delivery.
- No administrative fees: By purchasing from our site, registered under the IOSS system, you avoid the high administrative fees often imposed by carriers. On sites not registered with IOSS, these fees can be significant.
2. Orders Over €150 (Excluding Shipping Fees)
For orders exceeding €150, VAT and any potential customs duties are not collected on our website. These fees must be paid directly to the carrier or customs authorities upon delivery.
Comparison of Scenarios:
| Order Amount | VAT | Administrative Fees | Payment Responsibility |
|---|---|---|---|
| ≤ €150 | Collected on our website | None | You pay it to B4Comics |
| > €150 | Paid upon delivery | May apply | You pay it to the carrier |
3. Understanding the New Rules: Why These Changes?
- Ensure fair taxation for cross-border sales.
- Eliminate the VAT exemption for low-value shipments.
- Simplify processes for consumers and businesses by implementing a single import system (IOSS).
4. Frequently Asked Questions
Q: Why do I have to pay additional taxes for an order over €150?
A: Orders over €150 are not covered by the IOSS system. These taxes are collected by local customs or the carrier according to applicable regulations.
Q: What does the VAT collected on the website cover?
A: The VAT collected on our site applies only to orders of €150 or less and includes the VAT rate of the destination country.
Q: What VAT rates apply?
A: VAT rates vary by country. Here are some examples:
- France: 20%
- Germany: 19%
- Italy: 22%
For a full list of VAT rates, visit the European Commission website.
5. List of Affected Countries
We apply VAT rules for the following EU member states:
- Belgium, Germany, Spain, France, Italy, Netherlands, Portugal, Sweden, etc.
6. Useful Links
We hope this information is helpful. If you have any questions, please contact our customer service team. We are here to assist you!
Thank you for your trust,
The B4Comics Team