If you intend to ship to Europe, please refer to the notes below.
Britain left the EU on the 31st January 2020. Prior to this, all online orders across the UK and Europe would have a shared 20% value added tax, added to the online purchase of most products. On the 31st tax collection was largely impacted and this changed.
The impact to online orders
Order(s) over 150 Euros
UK businesses that stock and sell taxable items generally do not now charge a 20% tax, for European orders, at the point of purchase. Instead, an import tax is likely to be due at the point of entry, into the recipient’s country. The applicable import tax can vary for each different product, and between each country.
A cost example
Challenger Bread Pan – list price £200
A UK customer will pay £200 and an additional tax rate of 20%. The total cost to a UK customer is therefore £240. The full £240 is collected at the point of purchase.
A European customer will instead pay £200 and no tax at the point of purchase. Import tax is subsequently calculated and collected by the respective country, as the product reaches the border. Generally, European import tax is around €65 for a £200 bread pan. Therefore, a European customer will pay £200 along with €65.
Order(s) under 150 Euros
A mechanism introduced does enable UK businesses to collect tax that are under €150. This mechanism is called IOSS and allows UK businesses to collect European tax at the point of purchase. At this time, DeliverDeli does not have an IOSS account. Therefore, orders under €150 will not include any tax at the point of purchase. The tax will instead be collected by way of an import tax.
How is import tax collected
When a shipment reaches the border of your country, a customs official will calculate the import tax based on the product code and invoice value. It is the responsibility of the UK company to clearly indicate both. A payment link will then be sent via email or text to the recipient. Once the payment is made, the shipment is released for forwarding.
If you are a European business that imports, you may have an EORI number. Import tax can be deferred to a later date. This helps to expedite cross border shipments. UK business shipping would need to indicate the EORI number on your shipment, allowing the import authority to make a record of the total owed.
What is the import tax rate to Europe?
Import tax varies relative to the product being imported. Using a product tariff code, it’s possible to check and find the tax rate via TARIC. TARIC is a European database.