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EU VAT invoices July 2021 e-commerce package

Parcel invoice and declaration rules following low-value consignments

The EU e-commerce package and UK e-commerce VAT reforms impose the obligation on sellers and marketplaces to charge VAT in their checkouts for transactions not exceeding €150 or £135. This comes with the obligation to produce a commercial invoice for the customs clearance process.

What is a parcel declaration?

A customs commercial invoice provides basic details for customs to understand the nature of goods, buyer and seller and what import taxes (customs duties/tariffs and VAT) are due. Most shipments will also require a customs declaration, too. Failure to include one will generally mean blocked deliveries and disappointed customers. When the shipments are above the rules of origin thresholds, a statement of origin is also required on the invoice.

Information required:

  • Description of the goods
  • Indicating if sales of goods/gift/return
  • Commodity code based on global WTO Harmonise Systems tariff codes 6-digits for UK. EU demands further two digits
  • Country of origin of the goods listed where the goods were produced, manufactured or assembled
  • Sellers name and address
  • GB or EU EORI number

2022 OSS and IOSS fixes are likely to no change these requirements.

CN22 and CN23 customs declarations for parcels

For parcels, either a CN22 or CN23 customs declaration form must be included with the above parcels. Packages weighing up to two kilograms with a value of up to €425 (£270 for UK) require a CN22 customs declaration.  The CN23 is used for packages weighing from two to 20 kilograms with a value of €425 (£279 for UK) or more.

The CN22 form is less detailed than the CN23 form. Often, it is attached to the address side of the parcel in the form of a sticker. The CN23 form contains more detail. It can be attached to the outside of the parcel in a transparent envelope along with a CP71 form*. If possible, attach this envelope on the same side as the shipping label.

* The CP71 form must be included as a supplement to the CN23. It serves as an address card. Make sure this document is enclosed in the transparent envelope and visibly attached to the parcel in cases where you do not wish for the carriers of the shipment to be able to see what the contents of the parcel are from the CN23 form.

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EU VAT reforms

Reform (click for details) Update
Contact VATCalc to learn how our single VAT determination, reporting and e-invoicing platform can help you manage and thrive with global compliance change
2035 Harmonisation of EU e-invoicing and domestic regimes Jan 2035
2030 Digital Reporting Requirements and e-invoicing harmonisation July 2030
Structured e-invoices supercede paper invoices July 2030
EC Sales lists replaced by Digital Reporting Requirements July 2030
2028 EU Customs reforms Published May 2023
€150 import consignment threshold removed Published May 2023
2027 Single VAT Registration in the EU - extension of OSS July 2027
Call-off stock VAT simplification ends July 2027
Harmonisation of B2B Reverse Charge rules July 2027
Proposal for VAT treatment of the platform economy July 2027
2026 DAC8 harmonised crypto asset reporting Approved May 2023
2025 VAT registration thresholds equivalence foreign businesses 1 Jan 2025
Virtual events VAT rule changes 1 Jan 2025
Financial Services VAT exemption reform proposals Consultation complete; proposal awaited
Tour operator margin scheme VAT reforms EC undertaking fresh review
2024 Payment providers' seller transaction reporting and bookkeeping obligations In effect since 1 Jan 2024
2023 DAC 7 - marketplace reporting harmonisation In effect since 1 Jan 2024
2022 IOSS reforms to prevent double taxation On hold
EU reduced VAT rate freedoms Entered into force 6 April 2022
VAT in the Digital Age proposals Published Dec 2022
EU DAC8 cryptocurrency tax reporting proposals Published Dec 2022
VAT Gap Initiative Q3 2022
EU Definitive VAT System On hold
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option


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