EU & UK eCommerce VAT Package & OSS 2021 Updates

By:  Aaron Rubin, Founder & CEO at ShipHero

Effective July 1, 2021, the EU & UK will begin enforcing the eCommerce VAT Package and One Stop Shop (OSS), which includes new rules regarding eCommerce and VAT. These rules will impact all businesses in the supply chain, including individual sellers and marketplaces. All distance sellers within and trading with the EU & UK must update their VAT requirements as this package replaces existing distance-selling rules and extends the Mini One Stop Shop (MOSS) into a wider-ranging One Stop Shop (OSS). Full details from the European Union may be found online.

There will be a lower pan-EU & UK threshold of €10,000 (€0 for businesses established outside the EU), which means businesses will need to account for VAT on additional supplies.

One Stop Shop (OSS):
Many businesses may be able to register in one Member State and report all EU & UK transactions through a single OSS return. Your payments will be collected and distributed from the tax authority in the Member State to other states where VAT is to be paid.

New OSS Schemes:

European Commission, New Future Proof VAT Rules
Important Facts:

  1. Removing the distance selling thresholds for sales of goods and setting a unified threshold of 10.000 euros.
  2. Expanding the Mini One Stop Shop (MOSS) by launching the new One Stop Shop (OSS).
  3. Ending the low-value import VAT exemption and introducing the new IOSS.
  4. Online marketplaces will be deemed the seller for collecting and reporting VAT.
  5. New record-keeping requirements will be introduced for online marketplaces facilitating supplies of goods and services.
  6. Special arrangements in order to simplify imported goods with a value of less than €150 in case the IOSS (import one-stop-shop) is not used.

ShipHero Software Updates:
Your ShipHero software includes a new VAT field to help automate the new processes. Please read the ShipHero knowledgebase article on how to set up eCommerce VAT in ShipHero today HERE.
The following have been updated to support the new fields:

  • Public API
  • New Order CSV upload
  • Automation Rules
  • Order Detail page
  • Generate Label Workbook

For carriers, the following are done:

  • Shippo
  • DHL ecomm v4
  • FedEx
  • Endicia
  • Firstmile
  • Globegistics
  • Endicia

In progress are:

  • DHL Express
  • UPS
  • Webshipper
  • Asendia
  • Canada Post
  • Purolator
  • NZ Post
  • Australia Post

If you’re an existing ShipHero customer, you can contact your Customer Success Manager (CSM) today to find out how ShipHero can help you navigate the new EU & UK eCommerce VAT and OSS Package requirements.

If you’re new to ShipHero, please schedule a meeting today with our experts to learn more about our WMS software built for ecommerce brands & 3PLs looking to run their best warehouse and how ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.

 Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

 About the author:  Aaron Rubin the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

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