Changes to EU e-commerce - why we have chosen to go DDU
As of 1 July 2021, items imported to the EU with a value of €22 or less became no longer exempt from VAT.
As a small business we had a number of IOSS (Import One Stop Shop) options available to us, but having given time and effort to understanding these our sales to the EU do not warrant the additional cost to both ourselves and our customers, not to mention all the additional paperwork and reporting that was required.
We have decided to operate a DDU (Delivery Duties Unpaid) option in relation to VAT, Customs and Import Taxes. As a non VAT registered company, registering for IOSS meant we would need to invest in software to assist in calculating and adding VAT at point of sale, which needed to affect our EU customers only and then undertaking the filing of EU VAT returns and remittances. There are options whereby Third parties help with the calculations and filing but, of course, there is a cost per package which we would then have to pass on to our customers in addition to the VAT and duties. This was unacceptably high and not an attractive option.
So, for the time being we aim to follow the DDU option: We will not ask for tax and duty from our EU customers at checkout. Instead, they will be contacted in their own country and will pay VAT and duties owed before receiving their item. In most cases we hope that this option will, in the long run, cost our EU customers less.
We will continue to monitor the situation and make changes if required.
If, as an EU customer, you are not happy to purchase under these conditions, you will still find most of our fabrics in our E-bay shop where VAT and duties will be added to your purchase at the point of sale. You will find us at https://www.ebay.co.uk/str/duckandweavefabrics.
If you need more information on anything you have read here, please do not hesitate to contact us direct. We will be happy to help where we can.