New European Union tax rules will change the way import tax is collected. Beginning July 1, Etsy will begin collecting import VAT on physical goods under €150 that are shipped to the EU from an outside country.
For items under €150, the listing price shown to EU buyers will include the import VAT amount, so it will be easy to understand how much they’ll pay for your item at a glance. This VAT will be automatically collected from the buyer at the time of purchase, then sent to local tax authorities on your behalf.
There’s not much for you to do at the moment, but we’ll send more information as it becomes available. In the meantime, you can read more on the new regulations and what you can do to prepare your shop before July 1 here.
