VAT Reform in the UK and EU Countries

Effective January 1, 2021, the UK’s Value Added Tax (VAT) reform abolished the VAT exemption for imports with an intrinsic value up to £15. As a result, goods with a declared value of more than £0 will now be subject to VAT. Customers purchasing and shipping goods through JoyaBuy will be responsible for any applicable taxes.

Effective July 1, 2021, the European Union’s VAT reform abolished the VAT exemption for imports with an intrinsic value up to €22. Now, goods with a declared value of more than €0 will be subject to VAT. Additionally, the EU has introduced the Import One-Stop Shop (IOSS) to simplify VAT declaration for goods valued under €150. Certain logistics routes on JoyaBuy offer IOSS services, where taxes are calculated and collected based on the fixed tax rates of EU countries and the declared value of your parcel. You can choose whether to use the platform’s IOSS service to pay taxes on your behalf according to your needs. Below are some relevant guidelines:

Tips:

1. Declared Value Modifications: For parcels using IOSS services, the total declared value cannot be modified after the parcel is submitted. If you need to change the value, please cancel the parcel and resubmit it.
2. Declared Value Limits: For parcels using IOSS services, the minimum declared value must be at least 30% of the goods’ value in the parcel. The maximum declared value depends on the specific route.
3. Customs Clearance: The IOSS service simplifies the tax collection process and accelerates customs clearance. However, it does not guarantee that the customs clearance time for your parcel will be shortened. For more details, please refer to the operational timelines of the local customs.
4. Tax Payment: JoyaBuy will pay the tax on your behalf if your parcel uses IOSS services. However, this does not guarantee that your parcel will not be taxed again by local customs. If this occurs, JoyaBuy recommends that you cooperate with local customs to clear the parcel and pay any additional taxes. After receiving the parcel, you can contact us to request a refund for the tax payment on the platform by providing the tax bill and payment receipt.
5. IOSS Number Confidentiality: To protect the rights and interests of users and the platform, JoyaBuy cannot provide you with the IOSS number used.

By following these guidelines, you can ensure a smoother and more efficient shipping and customs process when purchasing goods through JoyaBuy.