The new EU VAT rules from July 2021

EU VAT Rules

New EU VAT rules have been in place since July 2021. The European Commission took the decision to amend the EU VAT rules in order to facilitate EU cross-border trades, ensure fair competition for EU suppliers, and combat VAT fraud.

The European Commission updated the previous EU VAT rules in 1993. The digital age with online shopping was not born yet nearly 30 years ago. The pandemic increased online shopping and, therefore, an update of the rules was necessary.
The previous regulations allowed avoiding the VAT payments on goods that had up to 22€ value. The problem was that there were cases of goods like smartphones with a declared value of less than 22€.

Important EU VAT updates

The new EU VAT rules brought important impacts on customs as well:

  • All goods that you can sell online in the EU are subject to VAT regardless of their price.
  • The introduction of the electronic portal ‘Import One Stop Shop’ (IOSS) facilitates and simplifies the VAT declaration and payment for the online sales of goods imported in the EU and having a value that does not exceed 150€. 

IOSS allows non-EU registered e-commerce merchants to easily declare and pay VAT in the EU, and to the EU Member State in which it is rightfully due.
Consumers can avoid calls from Customs or couriers regarding extra payments when the goods arrive in their home country.

The New Rules and Koongo

The VAT rate can easily be different from a country to another one. Therefore Koongo implemented a feature in Edit Store to help its clients with the new regulations.

The order taxes are calculated by the products or store settings on Koongo as a default option. However, it is now possible to calculate the taxes by the billing or shipping address country.
If you choose billing or shipping address country you can select a default tax rate and/or specify the single tax rate for several countries.

This implementation simplifies the tax calculation for our merchants who will always be able to provide the correct tax rate with a minimum effort and, therefore, no mistakes.

Try Koongo to sell across multiple channels

Koongo is very simple to use. We work with over 500 channels but you need to set up the new EU VAT rules just once. Therefore you can save a lot of time and reduce the risk of mistakes.
Koongo offers channel connections to marketplaces like AmazonGoogle KelkooMarktplaatsidealoBeslisteBayWishCdiscountGoogle ShoppingWebgainsManomanoRakutenSpartoo and many more.

Koongo imports your marketplace orders into your store and syncs the stock levels of your inventory automatically.

The automatic order synchronization is available for many of Koongo’s supported e-commerce platforms like BigcommerceLightspeedShopifyCCV ShopMagentoMagento 2, or Woocommerce, and others.

Koongo is very affordable as its starting price is as low as 19€ per month. You can update your subscription at any time according to your business needs.

Also, Koongo supports the automatic order management for AmazonBol.comBestlisteBayidealoWish, and Miinto online marketplaces

Moreover, there’s no risk associated because a 30 days Free Trial period is available and you will have the time to set up your profile and test Koongo before the paying period.

For more details, you may contact us at We’ll be happy to help you with your integrations.

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