In response to changes to EU VAT regulations, Ingram Content Group UK (ICGUK) will be making alterations to shipping options available for orders printing in the UK and shipping to EU27 in Q3 2021.
1) What is IOSS?
The Import One-Stop Shop (“IOSS”) is the electronic portal businesses can use from 1st July 2021 to comply with their VAT e-commerce obligations on sales of B2C imported goods with a value less than 150 EUR to EU27 Countries.
According to the VAT rules applicable from 1st July, all goods passing into the EU27 will be subject to VAT regardless of value (previous VAT free threshold of €22 removed).
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.
The IOSS is being introduced to reduce customs delays by collecting tax away from the border.
For more see this link:
EU IOSS and
EU VAT e-commerce Package
2) What initial changes will ICGUK make from Q3 2021?
• Adding functionality to our order systems to allow you to pass IOSS reference numbers to ICGUK for B2C orders (see Glossary section below)
• UPS Tracked Premium/UPS Tracked Rush DAP shipping option will no longer be available on orders under 150 EUR
• No changes to shipping options for B2B orders, or B2C orders over 150 EUR
3) EDI File Positions
a. EDIFACTRFF segment after the NAD Buyer address - NAD+BY, RFF+AHP
Example: RFF+AVY:IM1234567890~
b. X12REF segment after the N1-N4 segments for the Billto address – N1*BT, REF*61
Example: REF*61*IM1234567891~
c. ASCII (Flat File)H2 record, position 394 for 20 characters for the Billto address- H2 BT
Example: H2PONUMBER BT…IM1234567891
4) XLS Spreadsheet Position
An IOSS field will be added to the spreadsheet
5) Is there a cost implication to the shipping changes?
Most shipping options will be impacted by this, resulting in changes to the cost of moving goods into the EU27 and the shipping methods available to you. VAT rates for EU27 countries available in Glossary.
6) What are your shipping options from 1st July?
UK to EU27 Tracked
Shipping Options
Charges Include
Process
UPS Premium/UPS Rush with IOSS Number
Print/Handling/Ship/Per Package Rate (£2.90)
VAT Charges managed by Publisher via IOSS. Streamlined customs process into EU27 as VAT arranged via IOSS. No customs checks required.
UPS Premium/UPS Rush (DDP)
No IOSS Number
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 EUROnly 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)
With IOSS Number
Print/Handling/Ship
VAT Charges managed by Publisher via IOSS. Streamlined customs process into EU27 as VAT arranged via IOSS. No customs checks required.
Standard (DAP)
No IOSS Number
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 is not responsible for lost and/or damaged shipments
Note: Shipping options for B2B orders, and B2C orders over 150 EUR remain unchanged
7) Shipping Codes:
Current EDI Shipping Code
Maps to Ship Method
Details
PRIPACK
Standard (0 – 2kg)
Standard – Delivered Duties Unpaid (DAP/DDU)
PRIMBAG
Standard (2 – 5kg)
Standard – Delivered Duties Unpaid (DAP/DDU)
PREMIUM
UPS PREMIUM - Delivered Duties Paid (DDP)
RUSH
UPS RUSH DDP
UPS RUSH - Delivered Duties Paid (DDP)
UKPRMDDU
UPS DDU
UPS PREMIUM - Delivered Duties UnPaid (DAP/DDU)
UKRSHDDU
UPS RUSH DDU
UPS RUSH - Delivered Duties UnPaid (DAP/DDU)
New EDI Shipping Code
Maps to Ship Method
Details
USTDIOSS
UPS DDP
UPS PREMIUM – with IOSS Number
UEXPIOSS
UPS RUSH DDP
UPS RUSH – with IOSS Number
8) Further details on shipping options below:
Tracked DDP Service. LSI UK handle all VAT & customs clearance charges on your behalf. There will be no change to this service after 1st July. The cost of this service reflects the additional charges incurred. Under this service, there will be no requirement to register for IOSS and the end recipient of the book will not be liable to pay any VAT or custom clearance charges as these have already been taken care of.
Tracked DDP Service with IOSS. If you are registered for IOSS and have collected the VAT from your European customer, you can choose to send using our tracked DDP IOSS service. The cost will be significantly lower than our Tracked DDP service and no further customs charges should be applied when your order passes through EU27 customs*
Tracked DAP Service. We will no longer be able to offer a tracked DAP service after 1st July.
Untracked No IOSS: If items are sent untracked and a valid IOSS is not provided, the goods will be held by customs in the EU27 country of delivery. The domestic postal service used to move your item will contact the end recipient and will bill them for the VAT due on the goods plus an admin fee. This fee can vary widely by service ranging from £5 - £30+ per consignment. If the end recipient refuses to pay customs entry fees, the package may be returned, and additional shipping charges could be levied.
Untracked with IOSS: If a valid IOSS is provided, goods will not be held by customs in the country of arrival and the domestic postal service will be able to deliver to the end recipient. While the overall shipping cost to you as the publisher will be the same as under Untracked No IOSS, your end customer will not have to pay the admin fee charged by the domestic postal service to handle the clearance. Please note that the publisher remains responsible for providing accurate tax information including VAT numbers, accurate declared values, and nothing herein changes a publisher’s responsibility for all taxes and fees related to services provided on their behalf.
9) What is ICGUK required to provide for deliveries entering the EU27 from 1st July 2021?
A commercial invoice containing:
i. Commodity Code
ii. Country of Origin
iii. Full address details for end customer (supplied by Publisher/Retailer)
iv. Ingram’s EORI number (if not going via a Freight Forwarder)
10) What is required from the Publisher/Retailer in addition to the normal order details?
i. Publisher’s IOSS number where available for orders under 150 EUR
ii. A Declared Unit Value
iii. A current phone number for the end customer (see point 11)
iv. An EORI number (only when using a Freight Forwarder)
11) 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:
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 European Union.
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:
Code
Country
VAT Rate
AUT
Austria
10%
BEL
Belgium
6%
BGR
Bulgaria
20%
CZE
Czech Republic
15%
HRV
Croatia
5%
CYP
Cyprus
5%
DNK
Denmark
25%
EST
Estonia
9%
FIN
Finland
10%
FRA
France
5.5%
DEU
Germany
7%
GRC
Greece
6%
HUN
Hungary
5%
IRL
Republic of Ireland
0%
ITA
Italy
4%
LVA
Latvia
12%
LTU
Lithuania
9%
LUX
Luxembourg
3%
MLT
Malta
5%
NLD
Netherlands
9%
POL
Poland
5%
PRT
Portugal
6%
ROU
Romania
5%
SVK
Slovakia
10%
SVN
Slovenia
9.5%
ESP
Spain
4%
SWE
Sweden
6%
Note: Actual VAT rates may be modified from time to time by the countries’ governments.
Acronyms:
B2C – Business to Customer
B2B - Business to Business
DDP – Delivery Duties Paid
DAP – Delivery at Place (formerly DDU Deliver Duties Unpaid)
IOSS – Import One Stop Shop
EORI - Economic Operator Registration and Identification Number
DUV – Declared Unit Value