1. UKVAT Reform (Effective 1 January 2021): As of January 1, 2021, the UK abolished the VAT exemption for imports with a value of up to £15. Under the new regulation, all goods with a declared value above £0 will be subject to VAT. Users purchasing and transporting goods via Mulebuy will be responsible for any taxes incurred during the import process.
2. EUVAT Reform (Effective 1 July 2021): Similarly, the European Union removed the VAT exemption for imports with a value up to €22 as of July 1, 2021. All goods with a declared value over €0 will now be subject to VAT. Additionally, the EU introduced the One-Stop Import Service (IOSS) for goods valued under €150. For goods under this value, it is recommended to declare VAT through the IOSS. Some logistics routes on Mulebuy provide IOSS services, where taxes are calculated and levied based on the fixed tax rates of the respective EU countries and your parcel’s declared value. You may choose to use the IOSS service to have taxes paid on your behalf, depending on your preference. Below are the routes that support IOSS for your reference.

Tips:

1. Modification of Declared Value: For parcels utilizing IOSS services, you can’t modify the total declared value once the parcel has been submitted. If a change is necessary, please cancel the existing parcel and submit a new one.
2. Declared Value Limitations: For parcels using IOSS services, the declared value can’t be less than 30% of the goods’ value in the parcel, and the maximum declared value may vary depending on the shipping route.
3. IOSS and Customs Clearance: While IOSS simplifies the tax collection process and accelerates customs clearance, it doesn’t guarantee that your parcel will clear customs faster. The customs clearance time will depend on the local customs procedures.
4. Double Taxation: If your parcel uses IOSS services, Mulebuy will pay the VAT on your behalf. However, this doesn’t guarantee that your parcel won’t incur additional customs charges by the local authorities. In the event that this occurs, Mulebuy recommends that please cooperate actively with local customs to resolve the issue. Once the parcel is received, you can contact Mulebuy to request a refund for the additional tax payment, provided you submit the tax receipt and payment certificate.
5. IOSS Number Privacy: To protect both user and platform interests, Mulebuy can’t provide the IOSS number used for your parcel.