Knowledge Base: E-commerce Accounting and VAT Compliance


VAT Focus | For low value consignments there will be a super reduced data set from 1st January, 2021

VAT Focus

Following an amendment to the Union Customs Code Delegated Regulation (EU) 2015/2446 released on 5th July, 2019, it will be possible from 1st January, 2021 to declare goods up to €150.00 using a customs declaration that requires 3 times less data than a standard declaration.

Currently, consignments of goods into the European Union (EU) that are not more than €22.00 (set at £15.00 for the UK) are exempt from VAT. Since this measure, also known as Low Value Consignment Relief (LVCR), will disappear from 1st January, 2021, all imports into the EU will have to be declared at the border using an electronic customs declaration.

In addition, since ‘Customs Duty’ is not due for goods, provided straight to the buyer when their value does not surpass €150.00 (£135.00 for the UK), and with the massive volume of low-value consignments imported into the EU it makes it difficult for the customs IT system to process, these measures by the European Commission (EC) ought to alleviate the effect of the upsurge in the number of customs declarations.

This important step forward will allow EU Member States and economic operators to go ahead with their IT developments once this amending regulation enters into force on 25th July, 2019.

The communication from the EC can be read here.

We will be keeping track of the legislative work and keep you informed of any changes in this respect.

For further information please do not hesitate to contact us here.

The information contained above is of a general nature and does not concern the situation of a specific company. Due to the speed of changes occurring in EU legislation, we kindly ask you to determine, on the date of this information, whether it is still up to date.

amavat® provides a one-stop-shop solution for VAT Compliance within Europe. We assist clients with a single point of contact that speaks their language and handles all VAT related issues with a standard and cost efficient approach.
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International Sales Manager
Customer Relations Consultant for Online Sellers