International Shipping? Here Are New Fees Effective July 1

International shipping

Brexit. It’s been in the news now for more than a year. It’s one of the reasons why there’s a big change coming for any online business that ships to EU recipients. The change is a VAT increase, which is a value-added tax that is imposed on any goods shipped internationally. For some time now, any shipment going to the EU that was valued at 22 euros or lower, did not include a VAT fee. The new rule however, states that EVERY shipment sent to the EU is subject to VAT fees beginning July 1.

Other requirements. There are also demands on other shipments as noted below.

  1. A storefront must clearly state the amount of VAT EU buyers will need to pay.
  2. Each shipment, no matter what the value of the VAT, must include a customs form.
  3. Electronic record keeping must be maintained for a period of 10 years.
  4. Harmonization numbers must be assigned to every item in the shipment. The number must be on the customs form.

What this means for online sales. While the shipper is not responsible for the online fee, you will want to make it easier for the recipient to pay the VAT fee. Any surprises and fees to the recipient at the time of delivery will not bode well for the shipper. If your company ships internationally often, and to multiple countries, you may want to select an intermediary who can handle some complexities. Providing clear information to recipients will speed deliveries and avoid possible shut down.

Need more info? Give us a call at 718-238-2919 and ask for our international shipping expert. You can also view a more detailed article online here.

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