Only July 1, 2021, the European Union (EU) introduced new Value-Added Tax (VAT) requirements for all parcels entering EU-member countries. One big change is that products valued at 22 euros (approximately $26) or less now have VAT applied in order for the buyer to take receipt of the product.
What is VAT?
VAT is a consumer tax that European governments use to collect revenue on all goods and services consumed by their residents, including products that were made outside of the EU. VAT is used somewhat to even the playing field for European manufacturers as well as increase tax revenues. Generally speaking, VAT is paid by the buyer to the seller and then the seller gives either all the fees, or a large portion of the fees collected to the EU government where the product was imported.
EU countries are responsible for creating their own VAT rate, but they need to have a standard VAT of at least 15%.
Listed below are the current EU standard rates as of July 1, 2021:
|EU Country (as of July 1, 2021)||Standard VAT on Taxable goods and services|
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