MyUS blog


Changes to European Union VAT Collection for International Shipments

As of July 2021, MyUS will be utilizing the EU Import One-Stop Shop (IOSS) entry process, which requires us to collect a Value Added Tax (VAT) on shipments of low-value items to EU member countries. New measures to collect this tax have been implemented, which means MyUS will now collect this VAT at the time of shipping.

When EU’s VAT Applies for Collection by MyUS

VAT will be collected by MyUS through IOSS only on the shipment of low-value items, based on the total value of the items in a shipment. The EU defines low-value as a shipment with combined product values of €150 or less ($177 US as of 7 July 2021). This is sometimes referred to as the intrinsic customs value of a shipment. 

The new VAT collection applies only to consumer shipments. Business shipments must provide their EORI Number and pay VAT upon arrival in the destination country. 

If you are sending a shipment valued at more than €150, VAT will not be collected by MyUS under the IOSS collection process, but will instead be collected directly by the destination government upon arrival. 

However, if your shipment qualifies, you may elect to prepay duties and taxes on shipments above €150 at the time of shipping through our Duties Delivery Paid (DDP) process. With DDP, MyUS collects applicable duties and VAT at the time of shipment, regardless of the combined value of products being shipped. Learn more about DDP shipping options here.

How VAT Cost is Determined

While the same VAT collection process applies to all EU member countries, the actual VAT rate varies by member country. When a shipment qualifies for VAT collection by MyUS, the amount due will be displayed and charged at the time of shipping. You can learn more about EU member country VAT rates here.

What This Means for You

MyUS will now be collecting VAT at the time of shipping for shipments valued €150 or less being sent to an EU member country. By doing so, your shipment will clear customs in a more streamlined fashion and will also avoid extra customs fees that are assessed on imports that do not prepay VAT. This new process also provides greater transparency in cost by knowing what VAT applies upfront. 

We will not collect VAT on shipments valued at more than €150, or containing items that are exempt. These shipments will require payment upon arrival in the destination country. However, if your shipment qualifies for shipping with our DDP process, you may still be able to prepay these costs at the time of shipping. 

While MyUS will be collecting VAT, other governmental fees may apply to your shipments, including additional VAT on those governmental fees. Any fees that may apply, but are not collected by MyUS, will be the responsibility of the recipient and paid directly to the member state upon arrival.


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