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EU VAT scheme

Effective July 1, 2021

The European Union implemented a VAT scheme, eliminating the €22 VAT de minimis, which means VAT is due on all orders regardless of value.

This scheme has expanded the options for VAT collection by introducing IOSS, a method designed to help expedite the customs clearance process. No matter which method you choose, Zonos can help you stay compliant.

Low-value order: an order where the total value of the goods is less than or equal to €150

Find out more
EU VAT is changing, let Zonos help your business with VAT collection at checkout

What are my options?

Choose one of the three options below...

Not all carriers support all of the options; be sure to consult with your carrier.

Import One-Stop Shop (IOSS)

Recommended for: shops selling high volumes into the EU

How does it work?

When VAT is collected:

At checkout

Who collects VAT:

Online retailer

Clearance speed:

Fastest
Pros/Cons

Pros:

  • Fastest customs clearance
  • Most carrier fees waived

Cons:

  • VAT registration required
  • Monthly remittance required
  • Intermediary representative required, at your expense

Collect VAT at checkout

Recommended for: shops selling lower volumes into the EU

How does it work?

When VAT is collected:

At checkout

Who collects VAT:

Online retailer

Clearance speed:

Fast
Pros/Cons

Pros:

  • No EU registration
  • No remittance
  • Fast customs clearance

Cons:

  • Carrier prepayment fees may apply

Don't collect VAT

Recommended for: not recommended

How does it work?

When VAT is collected:

After import, prior to delivery

Who collects VAT:

Carrier

Clearance speed:

Slow
Pros/Cons

Pros:

  • You do nothing, no responsibility for VAT

Cons:

  • Slow customs clearance expected, resulting in delayed delivery
  • Frustrated customers due to lack of transparency on duty, taxes and fees owed (landed cost)

Zonos has you covered!

Current Zonos customers - it's easy!

Business as usual: Current Zonos customers do not have to make any changes if they are collecting VAT at checkout! Everything is covered.


IOSS: If you choose to register as an IOSS, we have you covered and can facilitate VAT collection and reporting to keep you compliant.


Landed Cost Guarantee: Add Landed Cost Guarantee to your existing account to get the benefits of IOSS, without the need for registration, an intermediary, or remittance, because Zonos will handle all of that for you and much more!

Not a Zonos customer yet?

Automate your international selling and EU VAT compliance with Zonos technology, from classification to duty and tax calculation, collection, and remittance.

Add Landed Cost Guarantee to any Landed Cost service to get the benefits of IOSS, without the need for IOSS registration, intermediary, or remittance.


*APIs and plugins available
*Use your own carrier

How do I get started?

Check out your resources, contact us, or read the FAQ below.

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EU VAT resources

Read

Docs: Guide to the EU VAT scheme
Docs: How Zonos products handle EU VAT
Blog: A fun read on the EU VAT scheme changes
Dashboard settings: Turn on IOSS for EU VAT

Download

One Sheet: Print or share this informational PDF

Watch

Webinar: EU VAT webinar for a better understanding
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EU VAT FAQ

Get answers to the most commonly asked questions.