VAT prepaid on eBay International Standard Delivery, for an order shipped from the USA to the EU

[chuck_vanderbildt]

The ebay information about their International Standard Delivery clearly states that it is a Delivery Duties Unpaid service, meaning the buyer will be responsible for paying VAT, clearance and possible import costs upon receipt. I ordered an item worth 35 USD, had it shipped with the eBay International Standard Delivery service, and paid VAT on top of this, directly at time of purchase, in accordance with the 21% sales tax rate of my country (the netherlands), for a total of about 70 USD. I am assuming this means that ebay has put in place a collection scheme with the european IOSS system and I will no longer be required to pay VAT and clearance costs upon delivery? If so, it would be highly advisable that the description of the eBay International Standard Delivery service on ebay's own FAQ/site is updated, because this situation is highly confusing. I would love to have some clarification as to what I should or could expect upon delivery (which is apparently being handled by a consolidated DHL Parcel eCommerce service).

[martin2001 · Accepted solution]

You are correct. Ebay needs to update their site. Ebay is collecting the VAT tax and then transferring the tax to the Dutch taxing authorities. The only thing you can do, if it is not too late, is to ask the seller to make sure that ebay's EU IOSS tax number is part of the shipping label. I, as a seller,  also paste that info on the parcel: specifically. VAT TAX PAID, IOSS - IM2760000742. I already mailed (from USA) several order to EU and they passed the customs without any problem.

In any case, if the seller does not include this info in the shipping label, it may delay the processing of your order at your customs. But you have the receipt that ebay collected the tax, so you will pay it twice.

As far as the DHL is concerned, if they ask you to pay anything, you need to refuse their request and show them ebay's receipt. But I don't think you will have any problem with the delivery.

[lacemaker3]

@chuck_vanderbildt,

Beginning Jul 1, 2021, eBay is required to collect VAT for all shipments under €10,000 delivered to the EU, no matter what shipping service is used. More info:

https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650#section4

[elcucodeldelame0]

Please, we need some help here!

At least in Spain, writing the IOSS number in the label of the package IS NOT ENOUGH for the local authorities to recognize the VAT payment. They require it to be sent electronically by the sender's post office when generating the delivery, and obviously not every single country is going to adapt their system to sending items to the EU. I am aware that this has happened with both public postal services and private carriers.

PLEASE give us some instructions to avoid paying VAT two times, which is what is currently happening.

Thank you.

[jalve]

It's the same in Finland. The electronic information Finland Post expects to see for IOSS is never there, and as a recipient I have to make a customs declaration by myself, even though eBay collected VAT at the time of purchase. Then I have to enter the eBay IOSS number to the customs clearance system, and if they decide to charge VAT, I have to file a case with the customs to have the decision reviewed. What makes things even worse, if they do charge VAT, Finland Post also wants a "service fee" for their non-service, and I have no idea if it is possible to get that back if the excess VAT is returned. IOSS was supposed to make it easier for customers to pay VAT, not harder, so eBay is clearly doing something wrong.

[elcucodeldelame0]

Thank you.

May I know out of curiosity how much are the fees in Finland? In Spain, for comparison they are 5€.

And by the way, please, eBay, CATCH UP! Other online marketplaces (you know which one I'm talking about) are able to make this work and packages arrive without any problem!

Paying an item with more than a 40% of taxes makes buying at eBay completely pointless! And filing complaint on both eBay and local postal service for each single item is simply not feasible to get back few euros after some months... IOSS was supposed to simplify things, come on!!!

[jalve]

VAT is typically 24 %, but less for books and groceries. The so-called "service fee" for Finland Post is 2.90 €, but you also have to pay VAT on that, so it becomes 3.60 €.

[rvannooij]

So how is International Standard Delivery any different from the International Priority Shipping (GSP) now?
It still gets sent to a domestic consolidation center for processing, which I assume is run by Pitney Bowes....So we're still effectively paying extra shipping and PBs brokerage fees?

[argy_eyes]

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@elcucodeldelame0 wrote:

Please, we need some help here!

EBay:

This is just one of the threads on this problem. How many buyers and sellers are going going to experience it before you say something?

Which countries have a problem with eBay VAT data? What are you doing to address the problem? What should sellers do about it now?

Sellers don't expect an immediate solution,  just an acknowledgement and some guidance.

Mike

[coocoomakastick]

Same problem is Belgium for a shippment from USA. Paid the VAT direlty at eBay and now the customs are asking VAT + 15 Euros (!!!) "service fees". Incredible. I asked to review it and the increased the amount.  They say the IOSS was not completed or wrongly completed in their systems. What a waste of time and money.

[alexandrosarhangelos]

I am from Hellas and I also pay twice the VAT. I will not longer be purchasing anything from ebay until they solve this.

What is the point of addtin VAT on the purchase if they do not mandate to include it on the package from the seller?

And I guess this money is now staying in the pockets of ebay and Elon Musk so he can afford more new expensive toys.

Until they revolve this, ebay is no longer affordable or fast enough with packages. It takes them 3 months to deliver to my home now.

[stephenmorgan]

I sent a item to Germany a few weeks ago with eBay Standard International Delivery selected and the Value Added Tax was charged.  Item valued at $150.

A week later I sent another item to Germany with eBay Standard International Delivery selected and the Value Added Tax was not charged.  Item valued at $170.

I called eBay after a discussion of the new law that took effect I convinced them something is wrong with their eBay system.  Why were both items not assessed the Value Added Tax?  They said they would call me back when they have a answer.  It has been over a month and no call back.

[waterwin]

Although at the top it looks like there is a solution, there is not yet, because I have the same now in France receiving something from Japan ...

DHL wanting VAT and already paid VAT to EBAY in advance ...

[kh-vince]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.