VAT COLLECTION ON IMPORT PARCELS IN EUROPE… ARE YOU READY ?
Directives (UE) 2017/2455 & (UE) 2019/1995 & 2006/112/CE & 2009/132/CE
will be effective from July 2021.The EU has published new VAT rules that
are intended to simplify the import regime for parcels. All cross-border
parcels whatever the value, need to be declared to customs. All information
on CN22/23 labels on cross-border parcels may be registered.
Postal modernisation initiatives will require that each parcel must have a:
• defined economic operator
• harmonised code
• VAT payment status
to be processed through customs into the EU, in addition to today’s data validation requirements.
Extracting customs information from cross-border packets will be key.
Automated real time capture of this information from labels is essential.
Most installed OCR readers in sorting & distributions centres are unable
to correctly recognise & process address and CN22/23 labels.
On average, 40% of parcels will not be prenotified by the ITMATT database.