A number of tax and shipping changes are currently underway that may affect your business. To help you keep track of the latest, we’ve rounded up the policy updates in one helpful space. Please keep in mind that we plan to monitor changes from global governments and update this information accordingly.
What: One Stop Shop makes it easier to sell across the European Union
Who: EU sellers that sell to other EU countries
When: July 1, 2021
Instead of registering across multiple countries in the European Union, with One Stop Shop (OSS), you can register for one VAT ID in your home country to sell across the EU. You’ll still need your domestic registration, but with OSS, you can pay all of your EU VAT in a single return.
What: Import VAT will be automatically collected from the buyer
Who: Non-EU sellers that ship into the EU
When: July 1, 2021
Due to new European Union tax rules, Etsy will collect import VAT on physical goods under €150 that are shipped to the EU from an outside country. This VAT will be automatically collected from the buyer at the time of purchase, then sent to local tax authorities on your behalf.
What: New Regulatory Operating fee will be required
Who: Sellers in the United Kingdom, Spain, Italy, France, and Turkey
When: July 1, 2021
The cost of doing business in many countries has recently increased due to new regulations. In order to help cover a portion of these costs, sellers in the United Kingdom, Spain, Italy, France, and Turkey will see a new Regulatory Operating fee on their Payment Account. This fee is a small percentage that will be charged on each order.
What: The European Union will require tariff numbers for shipments
Who: Sellers shipping to the EU
When: July 1, 2021
When shipping an item to the EU, you’ll need to add a tariff number to the shipment. A tariff is a tax on imported goods and the tariff number, sometimes called a tariff code or HS Code, gives customs officials more information about what kind of item is being imported.
What: A VAT ID is required when your sales exceed the local threshold
Who: Sellers in the European Union, Norway, Switzerland, or the United Kingdom
When: Currently in effect
Etsy is required to report certain tax information to local tax authorities when sellers meet your country’s VAT sales threshold. As your shop is getting closer to the VAT sales threshold or local reportable threshold in your country, you will also receive email reminders from Etsy to add your VAT ID or taxpayer ID. We recommend adding this to your Shop Manager now so that you’re prepared.
What: You may need an authorized representative when selling toys in the EU
Who: Non-EU toy sellers
When: July 16, 2021
Non-EU sellers may be required to appoint an authorized representative when placing toys in the EU market. The name and contact details of the seller or of the authorized representative in the EU market will need to be indicated on the products or their packaging. The European Union has not released all of the information about this new requirement yet, but Etsy will provide additional details on this new requirement as we receive it.
Words by Etsy Staff
