New e-commerce EUROPE VAT rules as of July 2021
Starting on July 1st 2021, European tax rules on e-commerce are changing. From this date, all purchases made on websites based outside the European Union will be subject to VAT, from the 1st euro. For example, if a French resident buys a product worth EUR 10.00 on a website based in Japan, he will also have to pay EUR 2.00 in VAT (the VAT rate in France is 20%).
This VAT can be paid in 2 different ways:
1 - To the carrier, upon delivery. In this case, additional management fees are also billed by the carriers.
2 - When purchasing on the website, in addition to the price excluding tax of the products. This method will work for payments made from July 1st, for shops registered on a special system of the European Union.
How about SoKawaii? We are actively working on the second method. It is a very time-consuming process and is not easy for small companies like us since the law has been intended for large sales platforms. We will do our best to keep you updated along the way.
During the transition period (for parcels paid before July 1 but delivered in July), there is a large chance that VAT will be requested upon delivery by your local carrier. This will depend on the degree of application of the new law during the month of July and the transition period. It's impossible to predict, but expect to have to pay VAT on all your packages coming from outside of Europe, including SoKawaii.
Many questions still remain about the application of these new rules and we do not yet have all the answers. Thank you in advance for your understanding and support in the upcoming weeks.
In order to answer your questions, please read the FAQ below before reaching us. Our customer service is handling an exceptional volume of requests due to the situation so please be patient and avoid sending the same message on multiple channels. Thank you for your understanding.
Is the estimated delivery time impacted by the COVID-19?
My box has been returned, what should I do?
I don't have a tracking number, how do I know if my box has been returned?
How long should I expect to wait for my box to be shipped back to me?
Is there a risk my box is carrying COVID-19?
We will keep the information on this page updated.
Thank you for your understanding and support during this hard time. Stay safe!
The SoKawaii Team