1st of July EU VAT changes: How UK businesses can prepare

Cross-border delivery solutions like Spring Clear [1] can help UK e-commerce businesses streamline their delivery process.marketing.uk@spring-gds.com [2] to find out more.

Get an IOSS identification number. UK businesses can register for the Import One-Stop Shop and get an IOSS identification number with the help of their intermediary.

Digitally attach the IOSS identification number to orders that are sold to EU customers on or after the 1st of July. For goods that are shipped without an IOSS number after the 1st of July, recipients will need to pay any due VAT, as well as a local handling fee upon delivery. This may cause discontented customers.

Cost & Complications of the Cross-Over Period

Goods that are ordered, sent and arrive at their EU destination before the 1st of July will be unaffected by the upcoming VAT changes. However, goods that are sent before that date but don't arrive at their destination before July 1st will be liable to the new VAT rules. As IOSS data can't be applied to sales made before the 1st of July, the shipment's recipient will be asked to pay any due VAT, as well as a local handling fee which can range between €5 and €10 on average.

UK businesses are advised to warn their EU customers in advance that they may need to pay VAT and handling fees if their order arrives after July 1st to avoid any unpleasant surprises.

If recipients decline to pay these fees upon delivery, the seller's responsible for the administration and charges of returning the items.marketing.uk@spring-gds.com [3] and talk to a global delivery expert.

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