Effective July 1, 2021, the EU began enforcing its VAT eCommerce package, introducing new rules that affect all businesses selling within or into the EU. Distance sellers must review their VAT requirements accordingly. For full details, visit the European Commission website.
Overview of changes
- A unified distance selling threshold of €10,000 replaces previous country-level thresholds
- The Mini One Stop Shop (MOSS) is replaced by the new One Stop Shop (OSS)
- The low-value import VAT exemption has ended; the Import One Stop Shop (IOSS) is now in effect
- Online marketplaces are now deemed the seller for VAT collection and reporting
- New record-keeping requirements apply to online marketplaces facilitating goods and services
- Simplified arrangements are available for imported goods under €150 when IOSS is not used
How to set up VAT in ShipHero
ShipHero supports VAT registration type and ID via automation rules. Each shipment sent to Europe requires this information.
For 3PL accounts, automation rules are set up on the child account.
- Go to app.shiphero.com > Orders > Automation Rules
- Select + to create a new rule
- For EU shipments, under Trigger select Country > In List > EU Countries
- For UK shipments, set the Trigger to match the UK region. Available options include:
- GB
- England
- Northern Ireland
- NIR
- Wales
- Scotland
- UK
- Under Action, select Set Order Tax Registration > Import Tax Type > Tax ID
For more information about DDU and DDP shipping, visit our Knowledge Base article.