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The New European VAT rules explained from a customer viewpoint

July 02, 2021 1 min read

The European Union introduced a new Value added tax system (VAT) on July 1st 2021. As usual, they have increased the level of complexity, instead of simplifying the system...

We reconfigured our store to reflect these changes, but have been getting a lot of questions from customers on how this new system applies to them.

Most of the changes only apply to sellers, rather than customers.

In fact, customers based outside the European Union (USA, Singapore, HK, etc.) won't see ANY difference, they can continue to buy from us tax free as long as their shipping address is outside the E.U. (see our tax free shopping page for conditions).

European Union customers will continue to pay VAT on checkout, but instead of 21% Belgian VAT, they will pay their local VAT rate (for example: Luxembourg 17%, Germany 19%, Sweden 25%).

Our specific rules for the United Kingdom continue to apply, since the UK is not covered by the new European VAT rules and HM Government hasn't changed the UK VAT rules (unfortunately) that forced us to limit shipping to the British Isles. 

Summary:

LOCATION

E.U.

NON-E.U.

VAT

Customer’s local rate

No VAT (sales tax free)



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