Last month, we announced that beginning July 1, new European Union tax rules will change the way import tax is collected. Here’s a little more information about what you can expect starting in July:
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.
How to prepare:
What to do after July 1:
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.
Read more about this update here.