Dear valued Endicia integrator,
Effective July 1, 2021, value added tax (VAT) must be collected for all goods entering European Union (EU) member states.  

The VAT ranges from 17% to 27% depending on the EU member state, not including any applicable duties or fees. 

Any owed VAT, duties, or fees will be collected from the recipient, unless already collected by the shipper or online marketplace (such as eBay or Amazon). Current procedures for goods valued over 150 Euro remain the same. 

We are advising shippers to take the following steps to prevent EU-bound shipments from being delayed, held, returned, or abandoned:
  • Set shopper expectations on whether VAT, duties, and fees will be paid during the checkout process, or at some point afterwards. If not paid at checkout, these added costs may exceed the merchandise’s value. 
  • Collect the recipient’s phone number or email address at checkout, and include it with every outbound shipment. This helps customs resolve issues and collect any owed amounts.
  • Collect VAT during the checkout process and remit monthly payments to participating EU-member states via the Import One Stop Shop (IOSS) electronic portal. This requires contracting with an EU-based tax intermediary, as well as IOSS registration, as described on this official EU page: https://ec.europa.eu/taxation_customs/business/vat/ioss_en
  • Include detailed customs information with every outbound shipment to the EU, to make customs clearance as smooth as possible. This now includes the applicable IOSS number (belonging to either the shipper or the online marketplace), in addition to HS tariff codes, country of origin, customs description, etc.   
As a result of these EU changes, your software must provide shippers / merchants the ability to indicate their applicable IOSS number for EU-bound shipments.  Your software must pass the IOSS value to Endicia using the <CustomsInfo> object called “SendersCustomsReference”. This is the same field used to indicate the VAT number for United Kingdom-bound shipments. Please ensure that your solution encourages shippers to populate this field for electronic submission of their IOSS number or VAT number, but there is no need to block a shipment if it is missing.  

For any questions, please respond to this email.

As always, thank you for choosing Endicia.
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