e-Commerce VAT changes July 2021: Special arrangements


As we already analyzed most aspects of the changes that are to come for e-Commerce in July regarding VAT such as all the changes, who is concerned, the OSS(One Stop Shop), the IOSS(Import One Stop Shop), and the new rules for online marketplaces.  We will now move on to the Special Arrangements that will have a major effect on postal and courier services as well as consumers.


What are these Special Arrangements?

In case the IOSS (import one-stop shop) is not used then simplification measures will take place for distance sales of imported goods in consignments not exceeding EUR150. The special arrangements were introduced as an alternative simplification for the collection of import VAT in cases where neither the import scheme (IOSS) nor the standard VAT collection mechanism on importation are being used and they are not mandatory.


Which transactions are covered by these Special Arrangements?

  • Goods that are supplied to customers in the EU
  • Goods with a value of less than EUR 150
  • Excise goods are not included in the Special Arrangements
  • Goods that are released for free circulation in the Member State where the dispatch or transport ends


Who can use these Special Arrangements?

These rules are designed to be used by postal operators express carriers or customs agents who declare low-value goods for importation.


How do Special Arrangements work?

When low-value goods are orders from outside the EU by an EU consumer then VAT is generally due in the EU by the customer who orders the goods. Under the Special Arrangements, the customer will pay VAT to the person presenting the goods to customs such as a postal operator or customs agent.


Starting July 2021 customers will have to be more careful ordering goods from outside the EU, since, if the seller does not collect and remit VAT during and after the sale, consumers might face unexpected charges while trying to collect their order.


Need Advice? GVC can help you with everything related to VAT Compliance. We offer an all-inclusive service so you can focus on your business.



Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!