1st July EU VAT Changes FAQ

Acronyms:

B2C – Business to Customer
B2B - Business to Business
DAP – Delivery at Place (formerly DDU Deliver Duties Unpaid)
DDP – Delivery Duties Paid
DUV – Declared Unit Value
EORI - Economic Operator Registration and Identification Number
EU – European Union
EU27 – remaining 27 member states of the European Union after the UK’s withdrawal
IOSS – Import One Stop Shop

VAT - Value-Added Tax

In response to changes to EU VAT regulations, Ingram Content Group UK (ICGUK) will be making alterations as of 1st July 2021 to the web ordering process for orders printing in the UK and shipping to EU27.

1) What initial changes will ICGUK be making on 1st July 2021?

• From 1st July UPS Tracked Premium/UPS Tracked Rush DAP shipping option will no longer be available on orders printed in the UK shipping to EU27 under €150 EUR
• No changes to shipping options for B2B orders, or B2C orders over €150 EUR

Note: We are not yet able to accept IOSS numbers (see glossary section below) via web account; if you are already IOSS-registered, please contact ingramsparkinternational@ingramcontent.com for assistance

2) What changes will ICGUK be making subsequently in 2021?

Adding the functionality to our order systems to allow you to pass IOSS reference numbers (see Glossary below) to ICGUK

3) How are EU VAT Regulations Changing?

According to new EU VAT rules applicable from 1st July 2021, all goods passing into the EU27 will be subject to VAT regardless of value (the previous VAT-free threshold of €22 removed).

4) Is there a cost implication to the shipping changes?

Yes, most shipping options will be impacted by this, resulting in changes to the cost of moving goods into the EU27 countries and the shipping methods available to you (see below for shipping options and Glossary for EU27 VAT Rate Table).

5) What are your shipping options from 1st July?

UK to EU27 Tracked
Shipping Options	Charges Include	Process
UPS Premium / UPS Rush (DDP)	Print/Handling/Ship/Per Package Rate (£2.90)/ Disbursement Charge/ VAT & Duties	VAT charged upfront at ordering point. Streamlined into EU27 as VAT agreed ahead. Customs checks required.
UPS Premium/UPS Rush (DAP) Only to be used for B2B or B2C orders over 150 EUR	Print/Handling/Ship/Per Package Rate (£2.90)	VAT is charged to end customer. Destination countries UPS/Customs will arrange VAT, customs clearance charges and associated admin fees. Packages held until VAT paid and order cleared through Customs.

UK to EU27 Untracked*1
Shipping Options	Charges Include	Process
Standard (DAP)	Print/Handling/Ship	VAT is charged to end customer. Destination countries postal service will arrange VAT, customs clearance charges and associated admin fees. Packages held until VAT paid and order cleared through Customs.

Note*¹: All orders are non-trackable and non-insured. If you select this ship method, ICGUK are not responsible for lost and/or damaged shipments

Note: Shipping options for B2B orders and B2C orders over €150 EUR remain unchanged

6) What is ICGUK required to provide for deliveries entering the EU27 from 1st July 2021?

A commercial invoice containing:

1. Commodity Code
2. Country of Origin
3. Full address details for end customer (supplied by Publisher/Retailer)
4. Ingram’s EORI number (if not going via a Freight Forwarder)

7) What is required from the Publisher/Retailer in addition to the usual order details?

1. A Declared Unit Value
2. A current phone number for the end customer
3. An EORI number (only when using a Freight Forwarder)

8) Why is a current end customer phone number required on the order?

This will allow for the destination country’s customs and the courier to contact the End Customer if needed for streamlined resolution of any duties and taxes due and final delivery.

Glossary:

IOSS — The Import One-Stop Shop (IOSS) is the electronic portal businesses can use from 1^st July 2021 to comply with their VAT e-commerce obligations on sales of imported goods to EU27 Countries.

The IOSS system allows Companies selling imported goods to End Customers in the EU27 to declare and pay the VAT applicable on their sales to the EU27 via a single monthly return.

IOSS is designed to minimise delays in customs and avoid customs entry fees by collecting tax away from the border.

For more see this link: EU IOSS and EU VAT e-commerce Package

Definition

UPS per package rate – this is a Customs Clearance Charge from the courier and is charged for DDP and DAP shipments into the EU. UPS is adding a ‘Brexit fee’ of £2.90 per consignment. This fee is to cover the additional administrative work created by the UK being outside the EU.

UPS Disbursement Fee – When an item clears customs, a VAT fee will be calculated based on the declared value of the goods sent. If the sender or recipient of the goods has not shipped using a deferment account with the tax authority of the destination country, the carrier will make payment on their behalf. The disbursement fee is the charge the courier applies for this service

EU VAT Rate – the local VAT of the destination country.
Please see VAT Rate table below: