Changes to e-commerce rules 'causing confusion for exporters'

Major changes to the European Union 's e-commerce regulations are causing a massive headache for UK exporters.

The changes - which happened in July - are Brexit related, and involve adding VAT to all items imported to the EU, even those with a value of 22 euros or less, which were previously exempt.

This applies to goods sent directly to EU consumers via online sales, which are subject to whatever the local VAT rate is in the receiving country.

Those who ignore or get these rules wrong will find the full weight of EU bureaucracy coming down on them.

Horror stories have emerged as companies, although registered, sending parcels with non-compliant labels, leading to delayed delivery - or no delivery at all. This problem is then multiplied by the carriers ' lack of knowledge of the necessary procedures causing major disruption in peak season.

Andrew Hipgrave, specialist global logistics advisor at the Chamber, said there had been 'a lot of confusion ' since the rule change, which was linked to a recommendation for businesses to voluntarily register for a scheme known as Import One Stop Shop (IOSS).

IOSS is a system which helps businesses calculate and collect VAT from customers upon checkout and pay it directly to the EU.

However, Mr Hipgrave said that there had been a great deal of problems following its introduction, with many companies not even knowing how to register for it, which he did say admit was not straightforward.

He said: “Registration will be crucial to any business-to-consumer e-commerce company, and more relevant is how to do this, which is not straightforward. ”

He added that even though registration for IOSS was currently voluntary, it was likely to become mandatory, and urged businesses to act now to get compliant.

Any business needing advice or assistance should contact Andy Hipgrave ([email protected])