European countries are implementing strict rules mandating the prepayment of VAT for e-commerce orders. This directive is part of the "Digital Single Market Strategy for Europe" to ensure proper VAT collection for international online purchases. Navigating these changes can be complex, but Jet Worldwide offers best-in-class shipping solutions to seamlessly deliver online orders to Europe and the UK from the US and Canada.
Key Takeaways for Canadian Sellers:
- IOSS : Non-EU businesses must collect VAT at checkout for orders under €150.
- Duty Changes in 2027: €3 + €2 duty minimum fee applies to B2C low value imports
- Direct Shipping: Jet Worldwide enables direct injection from YUL, YVR, or YYZ to CDG or LHR to bypass consignee fees.
Direct Shipping Solutions from Canada
Non-EU businesses and online sites must now collect EU VAT. Jet Worldwide helps Canadian sellers set up direct shipping from Montreal (YUL), Vancouver (YVR), or Toronto (YYZ) direct to Paris (CDG) or London (LHR) for UK shipments. This allows for direct import with zero consignee import fees, utilizing delivery by leading European carriers.
While minimum volumes are necessary, these direct shipping solutions are highly scalable using your existing warehousing and logistics infrastructure.
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B2C Low Value Shipment 2027
Importing Low Value Shipments to Europe: 2027 Outlook
Europe imposes a minimum €3 duty + €2 handing multiplied by each distinct item category contained within the parcel, based on tariff sub-headings.
Example Calculation:
- The Order: 1 cotton blouse plus 2 wool blouses.
- The Assessment: Cotton and wool have different tariff sub-headings, meaning there are two distinct categories in the box.
- The Cost: 2 categories multiplied by € 5 equals a €15 total customs duty.
Note: VAT still applies to all imports to Europe, regardless of these duty changes.
Marketplaces as the "Supplier" and IOSS
Canadian online e-commerce merchants can ship directly to Europe with no charges to the consignee via Jet's direct import processes.
As a supplier, the online marketplace is held responsible for collecting VAT for online orders up to €150. This process is managed through the Import One-Stop Shop (IOSS), a system designed to simplify the importation of online goods.
EORI Number vs. IOSS: What is the difference?
An Economic Operators Registration and Identification number (EORI number) is an EU identification number for businesses that import or export goods into or out of Europe. While IOSS applies to B2C online orders to individuals.
The EORI number consists of two parts:
- The country code of the issuing Member State.
- A code or number that is completely unique within that Member State.
VAT Rules for Imports to the European Union
All imports to the EU are subject to VAT. E-commerce shipments under €150 can import via One-Stop Shop (IOSS) processes that allow sellers and online marketplaces to charge VAT at the point of sale and remit it directly to the authorities.
- Without IOSS: The VAT will be charged to the e-commerce customer by the importing carrier, which usually includes an additional administrative or pre-payment fee.
- With IOSS: Canadian e-commerce businesses and marketplaces can register for a VAT account in only one EU country to cover sales across the entire EU bloc.
Coverage Across All EU Countries and Northern Ireland
The IOSS applies to online sales to all EU countries, including Austria, Belgium, France, Germany, Italy, Spain, and Sweden. EU VAT rules for Northern Ireland are established separately under the EU-UK Joint Protocol.
Frequently Asked Questions
What is the cheapest option for shipping online orders to Europe?
The cheapest option for sending online orders to Europe depends on the size and weight of your package and shipping volume. Generally, the cheapest option for shipping low volumes of small packages is via Canada Post surface. Heavier commercial packages are usually best via courier (contact Jetship for rates). For regular e-commerce volumes, shipping consolidations via Jet Worldwide Direct Air Freight localizes your producsts with highly competitive rates.
How can I get Canada Post surface costs but with faster delivery?
Building a low-cost shipping solution to Europe involves consolidating orders and sending them via direct air freight from Canada. Shipping direct requires minimum volumes to be cost-effective, but it allows Canadian retailers to scale their sales directly from their domestic facilities.
Can I benefit from duty-free import to Europe from Canada?
Goods that qualify as Canadian origin under the European Canadian free trade agreement (CETA) can benefit from duty-free import regardless of the value. Read more on Customs Duty calculations.
Do I have to pay VAT for duty-free shipments to Europe?
Yes, VAT applies to all imports to Europe.
Can I ship via DPD to Europe and the UK?
Yes, but minimum volume is necessary. Contact our team for full details.
Download our Accompanying PDF Guide for Shipping to Europe
Jet Worldwide: Global Brand, Local Solutions
- Parcel shipping solutions between North America and Europe.
- Delivery VAT and Duty paid import for B2C e-commerce consignments.
- Facilitated IOSS registration exclusively for Jet clients.
Disclaimer: The information in this blog is for general information only and is not intended as legal or tax advice.
