European e-commerce: turning the regulatory obligation into a business leverage

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Questions/réponses

What is the threshold for collecting customs duties, is it from the 1st euro or from €150 ?

The €150 duty-free rate remains applicable: there will be no customs duties below €150 of declared value.

What is the difference between OSS and IOSS?

They are two one-stop shops for VAT declaration and payment with a different scope of application:

• OSS (one stop shop) is the one stop shop for intra-EU sales;
• Whereas IOSS (import one stop shop) concerns goods imported from a non-EU country into an EU Member State.

I am subject to VAT on the margin, which is a derogation from the system introduced on 1 July. How are the French and foreign postal services informed of this derogation? Should we just mention our VAT regime (art 297 A CDI) on the invoice?

The new rules do not apply to transactions subject to the VAT margin scheme. It is indeed necessary to mention the application of this regime on the invoices (and also on the DEB: declarations of exchange of goods if applied: code 19 for acquisitions, code 29 for shipments).

Is €10,000 a single threshold for all EU sales?

No. The €10,000 per year threshold is an overall threshold assessed at the level of all Member States (and not country by country), above which VAT is due in the State of destination. 

Does the €10,000 threshold avoid the need to set up an OSS account ?

When you are below the €10,000 threshold for sales in the EU, you apply the VAT of your Member State (the seller's country, France in our case), so there is effectively no need to register with the OSS because you will not have to charge the VAT of the customer's country. An OSS registration is only useful if you exceed the €10,000 threshold per calendar year.

Is the €10,000 threshold set on a calendar year basis or according to the dates of the accounting period?

In accordance with II-1 of article 259 D of the General Tax Code, the €10,000 threshold must not be exceeded for the current calendar year or for the previous calendar year.

If I already have VAT numbers in all the countries where I work in Europe, do I still have to use the one-stop shop or can I continue to work as I do now?

Yes, you can continue to work as you do. The OSS is optional. It is therefore still possible to become (or remain) liable for VAT in all EU countries in which you have customers through voluntary VAT registration.

If we exceed the €10,000 threshold in the EU, we have to declare the turnover of each country per month?

Above the €10,000 threshold, VAT must be declared and paid each month in the Member State of consumption. However, you can opt for the OSS one-stop shop to simplify your procedures. Without OSS, you will have to register in each Member State in which you supply goods or services.

To be precise, if we do not make €10,000 in the European Community, we are not affected by these new measures?

In fact, for small sellers (excluding electronic platforms) there are no changes, apart from this new global threshold which replaces the old thresholds for each country.

Hello. What is the procedure for the EEC zone?

Within the European Union, the rules have changed as explained during the webinar: in principle, the VAT applicable is that of the country of consumption, except when the seller does not exceed an overall EU sales threshold of 10,000 euros per calendar year: in this case, the seller can apply the VAT of his Member State.
The former country-by-country thresholds (€35,000 for France) have been abolished.
Finally, a one-stop-shop OSS has been created within the EU, which allows to dispense with VAT registration in each country where sales are made.

What is the scope of Switzerland and the United Kingdom?

These two countries are not part of the EU, so transactions with them are treated as for third countries, which means from a VAT point of view as imports/exports.

Does the new customs modality apply to the rest of the world, for example Mexico?

Yes, the new rules impact trade with customers in the EU as well as outside the EU: for example, when importing goods shipped from Mexico, VAT will be applied from the first euro (removal of the former €22 threshold). In case of intermediation of marketplaces between a Mexican seller and a French private customer, the marketplace will be liable for import VAT.
On the other hand, there will be no changes for exports (French seller to a particular Mexican customer for example).

Can you clarify the regulatory framework applicable from 01.07.2021 for imports of goods from outside the EU via marketplace operators?

Online platform operators are deemed to have received and delivered the goods themselves. They are therefore liable for VAT on the sales they intermediate, they will have to collect the VAT when the customer pays and pay it to the Treasury (either via IOSS if they are registered, or in each country of consumption if they are not).

Do we already know whether agreements have been made between e-commerce giants such as AliExpress or Amazon so that the payment of VAT is made by these platforms and therefore transparent to the customer on receipt, or will it be unknown for the customer?

These are not agreements, but platforms that are now liable for VAT on the transactions they mediate can opt for IOSS to facilitate the VAT declaration and payment procedures. As far as we know, the most important platforms have opted for IOSS (Amazon in particular), but we recommend that you contact your platforms, which will give you the information and their IOSS number.

Does it make a difference if the platform collects the money from the sale or if the retailer collects it directly?

It does not matter whether the platform collects the money directly from the sale or not, as soon as it facilitates the sale, it becomes liable for VAT. 

We keep a 22-euro exemption for French Overseas imports, whatever the origin of the goods?

Yes, VAT and dock dues do not change.
The value added tax (VAT) is applicable in the departments of Guadeloupe, Martinique and Reunion under the same conditions as in mainland France. It is temporarily not applicable in the departments of Guyana and Mayotte.

On 1 October, will VAT be applied in French Guiana?

VAT is not applied in French Guiana, it is the Octroi de Mer rate that will not change as a result of this new regulation.

The main pitfall is returns and exchanges: the customer pays customs fees twice, and therefore prefers not to do so.

With Colissimo, the customer only pays customs fees once when sending the goods, and does not pay customs fees when returning the goods by specifying on the CN23 return customs declaration that the goods are an exchange/return.

Does the electronic declaration process concern all transport services (air, sea freight, etc.)?

Yes, all modes of transport are concerned.

If I am an e-trading company established in France, are my exports concerned by VAT?

Yes, your exports to foreign countries will be subject to the VAT of the country of destination.

Pour les ventes BtoC intra-communautaire il faut donc connaitre le taux de tva dans le pays de destination par nature de produit ?

Yes, VAT varies according to the product and the country to which you are exporting.

For intra-community BtoC sales, you need to know the VAT rate in the country of destination by type of product?

A parcel to the European Union, and Belgium is one of them, must be invoiced inclusive of tax.

Can you explain the "customs announcement quality supplement" of 15 €, applicable from 01/07/2021, indicated in the tariff brochure for departures from the DOM?

In the event of failure to correct a customs non-conformity, a supplement of €15 excluding VAT will be invoiced (except if missing information is transmitted via OSC before the arrival of the parcel at Roissy). This surcharge will be implemented from October 1st.

Will St Pierre and Miquelon be on the same scheme as the DOM, for dematerialisation and remote customs clearance?

The OM2 perimeter (Wallis and Futuna, New Caledonia, Polynesia, St Pierre and Miquelon, Southern Territories) is not concerned by these changes.

Can we announce reduced delivery times to our customers thanks to this new service?

Yes, our new customs clearance process will significantly improve the entire customs clearance chain and customer service.

Hello, are the transport costs the same for the DOM-TOM?

Transport costs are not affected by the new regulations.

Will we be able to know in advance the amount of the customs fees to inform the customer before the purchase, in order to avoid that he does not pay on arrival and that the goods are returned to us?

By choosing the FTD-DDP option (Free of Taxes and Duties - Delivered Duty Paid), you will be able to know the amount of customs charges.

For DOM TOM shipments with VAT included, nothing changes?

If you use the FTD-DDP option, nothing changes for you.

Will the customer be charged customs clearance fees upon receipt?

Yes, if you ship with the DAP (Delivered at Place) option. However, if you wish, you can use the FTD-DDP option to take care of the duties and taxes.

If you have a OSS number, it will be entered into Coliship to facilitate customs clearance in the EU zone ?

There is no customs clearance in the EU zone.

Is it necessary to have a dedicated sales agent?

No, it does not seem necessary to have a dedicated sales agent. However, it is important to update your tools and follow our Customs 2021 checklist to ensure a smooth transition.

Will the import phrase remain on the invoice with the company stamp and signature?

Yes, the invoice will remain the same.

What procedure should be followed when it comes to free samples?

The samples have a market value that must be declared to customs.

What if we have several invoices for one shipment?

You must indicate on the CN23 customs declaration all the invoice numbers attached to this shipment. The total amount must be entered on the CN23.

What should be done when there are several goods from different countries in the same package? Today only one country is allowed.

It is possible to indicate several different countries of origin on the CN23 customs declaration.

What about goods sent by tracked letter?

Regardless of the container (tracked letter or parcel), the new regulation is applicable to all goods.

Hello, are there any process differences in B-to-B trade?

BtoB exchanges are not affected by the regulation.

Is the FTD-DDP option also valid for all countries in the EURO zone?

No, the FTD-DDP option only applies to the French Overseas Departments and Territories, but we do offer the DDP option for 21 destinations worldwide, which is the equivalent of the FTD-DDP. For more information go to the International section on your Colissimo Box.

What is the price for FTD DDP?

The rate is 7€ for both the Easy contract from Metropolitan France and the Privilege contract from Metropolitan France to the Overseas 1 zone (excluding Saint Barthélemy, Saint Martin, Saint-Pierre-et-Miquelon).

What defines a DAP or FTD - DDP?

The FTD - DDP is an option available to all companies exporting to the French overseas territories. It is up to you to decide whether you want to export to the Overseas Countries under DAP or FTD-DDP.

Will all the new features for Overseas be available via Coliship?

You will be able to upload customs documents and fill in the CN23 directly from Coliship. For those who are in Web service, you should use the web service documents which allows you to send us the customs documents.

When will we have access to the "extensions" of the modules for shipments in the OM1 sector?

These new functionalities will be available from 1 October 2021.

What will change concretely in the Coliship configurations?

On Coliship, two new functionalities will be integrated into the tool: the uploading of invoices or other customs documents and the possibility of making multi-packages to a recipient. The global invoice will be attached to the different packages.

In the case of sending invoices via the new module from 1 October 2021, we will no longer have to add invoices to the packages?

No, you will have to transmit them electronically for French Guiana and then the other French overseas departments as they are deployed.

Can we also upload them to Coliship?

Yes, it is up to you to upload the customs documents to Coliship.

On Coliship the CN23 will be uploaded directly when the label is created or will it have to be done in addition?

You will be able to fill in the CN23 directly, as today, from the interface.

Will the CN23 still have to be printed?

No, you can upload it directly via the Coliship tool, but you can always print it for more security.

In the case of a shipment of several parcels of the same order for the same customer, is a single invoice and a "CN23" declaration sufficient?

Yes, the multi-package function will meet this need: 1 invoice for several packages with 1 CN23 declaration for several packages. The global invoice will take into account all your parcels.

Can you explain the use of multi-package invoices?

In the context of multi-package, the commercial invoice will be linked to all the packages sent.

Is it possible to correct a declaration after the parcel has left for the web?

The information must be transmitted via the parcel tracking tool or via the Web Service document.

Do we need to contact our Colissimo sales representative to implement these changes to the web service or will it be done automatically?

You need to develop the document webservice to send us the documents. These technical specifications are available in the Tools and Services section.

Can the SoNice modules be used to transmit the necessary information to Colissimo for customs operations or do I need to use another module?

The official Colissimo modules are available on 5 CMS (Prestashop / Shopify / Magento / Oxatys / Woo commerce) and will allow the import of documents.

We personally use a Colissimo module on Prestashop. How will it work for the modules to transmit the documents?

If you use the official Colissimo module on Prestashop, you will be able to upload the documents directly.

Will the Colissimo module for Magento 1.9 be updated?

No, the 1.9 module is not updated anymore. You will have to upgrade to version 2.0 which contains all the new features.

The volume of documents sent online leads us to think about a web transfer in one time per day. Is this possible?

Yes, it is possible. The main thing is that all the information reaches us before the package arrives in Roissy.

Is the invoice to be uploaded as a pdf or is it a "real" EDI invoice?

The invoice can be uploaded as a PDF, JPEG or PNG. The invoice is requested according to the type of shipment (if it is a sale we will need the commercial invoice, if it is the shipment of a sample without sale, the pro forma invoice is sufficient).

We are creating specific Colissimo labels. How should the CN23 and the invoices be transmitted?

You have to go through the WS document and the WS CN23.

Will there be the same functionalities (dematerialised customs declaration) via the online shop?

The dematerialisation of documents is a legal obligation. All webshops have to comply with it.