Last month we announced that starting July 1, Etsy will collect import VAT on physical goods under €150 that are shipped to the EU from an outside country. Here’s a little more information on what you can do to prepare, and what to expect after the deadline.
What does this mean for your shop?
This new VAT will be shown to EU buyers as part of the listing price if the item is under €150.
We’ll automatically collect this VAT from the buyer at the time of purchase, then send it to local tax authorities, so you don’t have to worry about handling it yourself.
How to prepare:
- Read more about the VAT rates EU countries will be charging for different types of goods.
- Think about your business plan and pricing strategy since EU buyers might pay more for your items, then make any necessary adjustments ahead of time!
What to do after July 1:
- You must share Etsy’s IOSS number directly with your shipping carrier, and you must not use it for any other purpose. You can find the IOSS number on Etsy.com under Orders & Shipping. You can also find this number on your order confirmation email. Never write this number on your packages. The shipping carrier should submit this information electronically. This helps to ensure that your buyer won’t be charged VAT twice.
- Using shipping labels purchased from Etsy? We’ll do this for you.
Note: Always double-check this intake process with your local shipping carrier as it may vary. Some shipping carriers, such as Royal Mail for example, cannot accept or submit IOSS numbers in post office locations, and you may only be able to do this online. If your carrier cannot transmit our IOSS number electronically, the buyer could be charged VAT a second time.
Words by Etsy Staff
