Omniva: On several platforms, VAT can be paid when purchase is made

TALLINN – To make it easier to order goods from third countries in the European Union, it is possible on several e-shopping platforms from July to pay VAT on goods worth up to 150 euros when placing the order, Estonian state-owned postal service and logistics company Omniva said.

From July 1, a change to VAT regulations took effect in the EU that lifted the VAT exemption for parcels from outside the EU costing up to 22 euros, which were previously exempted from VAT. As with parcels over 22 euros in value, they will now have to be declared and VAT paid when they arrive in the EU, unless this can be done at the time of purchase. 

Marita Magi, head of the international segment at Omniva, said that the accession of AliExpress, Wish and Joom to the IOSS (import one-stop shop) arrangement will make things easier for everyone about to receive a parcel costing less than 150 euros.

"Before July, customers who had ordered a parcel worth from 22 to 150 euros had to fill in a declaration and pay VAT when it arrived, but now they can pay tax simultaneously with making the purchase," Magi said.

However, consignments sold under the IOSS scheme must also be declared when they enter the territory of the European Union. If an undeclared IOSS parcel reaches Omniva, Omniva will  declare it with customs. However, it is very important that the correct IOSS number is indicated by the sender in the electronic information concerning the shipment.

In the case of goods costing more than 150 euros, a customs duty has to be paid and these goods still have to be declared by the customer and import duties paid after they reach the EU. The IOSS scheme, where VAT on purchases of less than 150 euros in value is already collected when the purchase is made, has been implemented or is being implemented by most major e-commerce platforms. 

On AliExpress, Wish and Joom platforms, the possibility to pay VAT at the moment of making the purchase was introduced at the beginning of July.