Related Introduction

Understand new EU VAT regulations effective July 1,2021.Learn 4 compliant selling methods for non-EU sellers,including VAT registration and IOSS.

If you want to sell products compliantly in the EU,you can do it through the following methods:

Register for value - added tax (VAT) in an EU country and pay taxes;

Establish a company within the EU and sell products through the company;

Use a third - party logistics company or platform within the EU for sales and let the platform or logistics company pay VAT on your behalf;Use the Import One - Stop Shop (IOSS) declaration system to declare and pay VAT.

Register for value - added tax in an EU country and pay taxes:

Advantages: Relatively simple,no need to establish a company within the EU,can directly sell products,and goods can be directly shipped from China to Europe,with more flexible goods circulation;

Disadvantages: Need to register a VAT number in Europe,need to pay VAT to European countries,need to pay taxes across borders,which is relatively troublesome.

Establish a company within the EU and sell products through the company:

Advantages: Establishing a company within the EU,complying with local laws and regulations,is more compliant.At the same time,it can better access the local market,develop local customers,and is more conducive to long - term development.

Disadvantages: The cost is relatively high.It is necessary to consider a series of costs such as company registration fees,taxes,and employees.At the same time,it also puts forward higher requirements for the management and operation of the company.

Use a third - party logistics company or cross - border e - commerce platform within the EU for sales and let the platform or logistics company pay VAT on your behalf:

Advantages: The operation is relatively simple,no need to establish a company within the EU,no need to pay VAT by yourself,and it is more convenient to pay through the platform or logistics company.

Disadvantages: The cost is relatively high.The platform or logistics company will charge a certain agency service fee for tax payment.At the same time,it is impossible to directly access the local market,and it is difficult to carry out brand promotion.

Use the Import One - Stop Shop (IOSS) declaration system to declare and pay VAT:

Advantages: Simplify the process,can pay VAT more conveniently and quickly.After the goods arrive in Europe,they can be declared directly through the IOSS system,which can improve the customs clearance speed and is more conducive to product sales.

Disadvantages: Need to pay VAT to European countries,need to pay taxes across borders,and need to understand and use the IOSS system.

It is necessary to choose a suitable method according to your own situation and actual needs.

It is necessary to choose the appropriate method based on ones own situation and actual needs.