The VAT policy with regard to the postal shipments by the European Union (EU) on their member countries will be revised with effect from July 01, 2021, says Sri Lanka Post.
Issuing a notice, Postmaster General Ranjith Ariyaratne stated that the tax regulatory changes will be applicable to all goods, except letters, imported to the EU member countries including postal customers, online sellers and online market places.
Thereby, all mail items sent to EU member countries will be subjected to the applicable VAT policy and other tariff policies in accordance with the Union’s agreement with the relevant EU destinations.
According to the new tax policy, the sender must pay this VAT directly to the EU member country for all postal goods valued less than EUR 150.
The postmaster general said this revised tax policy applies to any postal item which even containing a personal gift item sent by a person living in Sri Lanka to any person living in any EU member country.
The above EU VAT policy will apply to postal items, up to EUR 150 in market value sent from Sri Lanka to an EU member country. Further, items valued at more than EUR 150 will be subjected to other customs regulations as determined by the relevant government in addition to the VAT policy of the EU member country. Hence, all applicable customs duties on postal items over EUR 150 will be charged from the recipient of that particular postal item/items at the destination.
Customers who send mail (except letters) to any member country in the EU can obtain all information about these tax policies, making payments and all the procedures to be followed regarding the relevant laws and regulations through the below-mentioned links.
The postmaster general noted that the customers should be aware of those policies, regulations and updates by referring these web links prior to handing over the goods at the counter.
Meanwhile, all postal customers, including online retailers and online marketplaces, are required to provide the Import One Stop Shop (IOSS) ID Number with the parcel/postal item at the post office counter, to ensure smooth customs clearance and timely delivery of the goods at the destination.
All customers who send postal goods to EU countries from the 1st of July are required to comply with applicable tax policies, in the event of non-compliance, the destination country reserves all the rights to add relevant taxes including VAT and other import tariffs.
In addition, the recipient might be caused to pay an extra clearance fee according to the import rules and regulations of the destination country. Additional charges at the time of import may cause the customer to refuse the goods. The customer is responsible for any further action taken by the Postal Administration or the Customs in respect of the relevant product.
The postmaster general stressed that Sri Lanka Postal Department is not responsible for the imposition and collection of these VAT or other tax payments.
The public can directly contact IOSS though the web and a private institution has been established to coordinate financial transactions and tax accounting among customers and related countries in relation to the above payments, the notice read further.
For more information, the International Postal Services Division at the Postal Department can be contacted via 011 2320017 or supdt@slpost.Ik.
Relevant information can be accessed by visiting the following web links.
https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm
https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-introduction_en
https://ec.europa.eu/taxation_customs/business/union-customs-code/ucc-legislation_en
https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en
https://ec.europa.eu/vat-ecommerc
Revision of VAT Policy on Postal Shipments by EU on Member Countries by Adaderana Online on Scribd
