In order to clear up confusion over the new regulations regarding shipping into Europe, that came into force on July 1st, Alterego Lingerie has been advising its customers what the changes are and what they mean.
Alterego says that dropshipping has become a big part of the service that it offers, and a number of its customers ship to countries in the EU. The Brexit deal has resulted in changes being made to how UK firms do business with Europe however, and a new way to pay VAT and (if applicable) duty on dropshipped orders has come into effect.
Alterego operations director Gareth Laycock explained: “On recent orders with Alterego, our customers may have noticed the term ‘without Import One-Stop Shop (IOSS)’ on order forms or other documentation. This is how we’ve been shipping products to the EU for our customers, as part of our B2B service to them and the B2C dropship service. It has applied to goods of any value. From 1st July 2021, the VAT exemption for importation of goods up to €22 was removed and all commercial goods imported into the EU became subject to VAT and now require a formal customs declaration. These changes affect every single person in the EU supply chain and have been designed with the goal of making things simple and fairer for everyone involved.”
The new VAT collection scheme, called an Import One-Stop Shop (IOSS) is optional and is applicable only in relation to B2C sales up to the value of €150 or £135. A guide can be found online at https://bit.ly/3zCFc79
“Under the new rules, you need to know about the changes to how VAT is collected,” Laycock continued. “This applies when you ask us to dropship an order to a customer in an EU country as we will only be offering a dropship service on a non-IOSS basis. In these cases, you will need to make arrangements for the appropriate VAT payment to be made by your customer as this payment will be required and will be collected by the courier prior to delivery of the goods in the destination country.”
The amount payable depends on courier’s clearance costs and the VAT for the receiving county, as each EU member state has a different VAT rate. A guide to VAT rates for each EU member can be found online at https://bit.ly/3ivU542
“Please note, you will need to advise your customer they will need to pay the VAT, clearance, and possibly duty – although most goods under €150/£135 are unlikely to be subject to duty – charges themselves prior to the parcel being delivered,” said Laycock. “It’s important to note that Alterego does not cover these VAT or duty charges (if applicable) for orders shipped to EU customers on customers’ behalf as a dropship order. Whilst we do everything we can to support our customers’ success and growth, naturally these costs would be exorbitant if we were to pay on behalf of every single customer we have. As such, they must be aware that any orders returned to Alterego as a result of non-payment of charges will incur an administrative fee of £25 plus VAT to cover return courier costs, handling, and admin fee. We know that a close working relationship with Alterego is essential to a thriving lingerie business, therefore, we’ve dedicated a section of our website to keep you updated with the latest Brexit developments and what they mean for our customers.”
This section can be found at https://alterego-lingerie.com/brexit-news/ or, for more information about Alterego’s dropshipping service, contact its customer services team.
“Whatever the IOSS regulations, you can still depend on us for reliable and efficient drop-shipping, with flexible delivery options, varied payment methods, and no minimum order quantity,” concluded Laycock.
Alterego Lingerie:
[T] 0845 094 6603
