New EU VAT scheme as of 1 July 2021

Jun 02 2021 0 Comments

The European Union has implemented a new VAT scheme effective July 1, making all imports into the EU subject to VAT.

The €22 EU de minimis no longer exists; all orders are subject to VAT. That means there will be no VAT exemption limit.

Summary of the EU VAT changes.

	Before July 1, 2021		As of July 1, 2021
Value of Imported goods	VAT	Customs Duty	VAT	Customs Duty
Less than or equal to €22	Exempt from VAT	Exempt from duty	VAT is due	Exempt from duty
Greater than €22 & less than or equal to €150	VAT is due	Exempt from duty	VAT is due	Exempt from duty
Greater than €150	VAT is due	Duty is due	VAT is due	Duty is due

Note: Kayoto WILL NOT pre-collect VAT at sale. All VAT will be paid to the destination country customs by the buyer as before.

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