How is VAT applied to EU-bound orders?

This does not constitute professional tax advice. We strongly advise consulting a tax specialist to find out your specific obligations.

The value-added-tax (VAT) rules on cross-border ecommerce activities change in the EU on July 1, 2021. 

Grandville Printing is registered as a VAT payer in the EU, so we must comply with EU VAT laws. 

Starting from July 1, 2021, there are 2 VAT regimes:

1. One Stop Shop (OSS) for domestic EU–EU sales
2. Import One Stop Shop (IOSS) for import from all countries outside the EU to the EU

To learn more about the two regimes, click here.

See what changes in the table below. 

Orders going to EU

-> registered VAT payer in Orders going from	Not registered	Registered in Latvia	Registered in Spain	Registered in other EU country
Latvia	Destination country's VAT rate applies	Latvia's VAT rate applies	Delivery address in Latvia: Latvia's VAT rate applies	Delivery address in Latvia: Latvia's VAT rate applies
			Delivery address outside of Latvia: 0% VAT applies	Delivery address outside of Latvia: 0% VAT applies
Spain	Destination country's VAT applies	Delivery address in Spain: Spain's VAT rate applies	Spain's VAT rate applies	Delivery address in Spain: Spain's VAT rate applies
		Delivery address outside of Spain: 0% VAT applies		Delivery address outside of Spain: 0% VAT applies
US/other countries	Grandville Printing products price above €150 (≈$183): 0% VAT rate applies	Not charged	Not charged	Not charged
	Grandville Printing products price below €150 (≈$183): destination country's VAT rate applies

To see EU countries' standard VAT rates, click here 

Services now also need to be applied with VAT. Since digitization is a service we provide, all orders with digitization will have VAT added to the whole order (product + shipping + digitization).

As the UK isn't a part of the EU, these rules don't affect how the VAT is applied to orders to the UK. Click here to read more.

If you're selling on an online marketplace such as Etsy, the marketplace will collect VAT from the end-customer, and we'll collect it from you as a store owner. It's because they're treated as two separate transactions—first, we sell you a product, and the transaction is between us.  Then your customer buys the product from your online store, and the transaction happens between them and your store. 

To learn how to submit your VAT ID to Grandville Printing, click here. 

To learn how to configure VAT on your platform or marketplace, click here