Asendia’s expert, Peter, gives his insights into EU customs changes for e-commerce businesses
The new customs changes coming into effect throughout 2021 require e-commerce retailers to adapt to new ways of paying and declaring VAT, issuing paperwork for customs, and working with online marketplaces.
Customs Specialist at Asendia
To support your transition with the new EU customs regulations, we’ve asked Asendia’s customs expert, Peter Waldhäuser, to answer four quick questions.
What do the changes mean for e-tailers within and outside of the EU?
The changes should result in a more level playing field for EU and non-EU sellers, by removing current differences in tax law. The result should be a fairer, safer system for e-commerce retailers and their customers, no matter where they’re based.
What does this mean for e-commerce retailers?
Sellers need to decide whether to participate in the IOSS procedure to understand the detailed customs information required with each shipment and start assessing which commercial deliveries are subject to VAT at the time of ordering.
We advised our customers on the following four-step strategy: Identify - Assess - Register - Implement. You should find out which transactions and shipments are affected by the new regulations, assess how you will now need to declare VAT, submit customs declarations, register for IOSS if you are opting to do so, and finally implement the changes.
How will the changes impact the shopper experience?
These changes are strongly impacting your shoppers’ journey, as they will now be required to pay VAT on items below 22 EUR through your webshop or when receiving the parcel. If you’re not adapting to the changes, you run the risk of surprising customers with unexpected costs which could result in order refusals and returns.
What is the main challenge for e-commerce retailers?
Ensuring your shipment data is correct, and any data or paperwork is up to date, is essential to be compliant with the new regulations. Above all, you want to avoid passing any unexpected costs or long delays on to your customers.
Asendia is committed to helping our customers transition to the new EU customs regulations smoothly. We’re working hard to continuously provide our customers with information and guides on how to comply with the new rules, how to prepare, and what’s next for e-commerce retailers.
For more information, visit our dedicated ICS2 and IOSS web pages, or contact us now.