EU Import VAT Changes 1 July

[georger45]

I sell small quantities of mostly low value items to EU countries and am aware of the impending changes in which ebay will collect VAT on all sales from UK To EU and am prepared for this (and the inevitable loss of sales due to my items becoming 20% more expensive for EU buyers). My question is what happens during the transition. Suppose I sell an item worth less than 22 euros (so no VAT is due under the current low value consignment rule) to an EU buyer on the 29th of June. No VAT will be collected by ebay because the new system has not yet been implemented but the package will arrive at EU customs after the new rules have come into force. Will the package be allowed through, or will my buyer be charged import VAT?

[katzrul15]

Bumping this up.  Wondering also as we wind down to 7/1.

Anyone know?

[tdumonde2014]

Just a wild guess, but I think that you'll have better luck asking this question on the UK forum.

[whattheactualfox]

So this is a tough question. 

Now this is a hypothetical answer below (may not be right just a guess) so please bear with me:

I would assume that after July 1st, your buyer would have to pay VAT on the item as it would be in customs after it was delivered. Worst case ebay may cover the cost and invoice you. I would think customs would let it go, but there would be the argument of "The item arrived after the new regulations and VAT was not collected" so it would be in limbo unless someone paid.

[hlaust2012]

Buyer will be charged. No matter when item was ordered, it is the date when the package arrives in the EU the new rules come into force.

[katzrul15]

Assumed the same.  Good reminder with those with long/longer handling times.