The EU e-commerce package and UK e-commerce reforms have imposed from 1 July 2021 the obligation on sellers and marketplaces to charge VAT in their checkouts for transactions not exceeding €150 or £135, respectively. This comes with the obligation to produce a commercial invoice for the customs clearance process of the parcel. The new Import One-Stop Shop IOSS VAT return can be used to report Value Added Tax charged in the checkout in all 27 member states.
You can check the right VAT calculations and disclosure requirements for EU invoices with our Advisor services.
What is a parcel declaration
A customs commercial invoice provides basic details for customs to understand the nature of goods, buyer and seller and what import taxes (customs duties/tariffs and VAT) are due. Most shipments will also require a customs declaration, too. Failure to include one will generally mean blocked deliveries and disappointed customers. When the shipments are above the Rules of Origin thresholds a statement of origin is also required on the invoice.
Information required:
- Description of the goods
- Indicating if sales of goods/gift/return
- Commodity code based on global WTO Harmonise Systems tariff codes 6-digits for UK. EU demands further two digits
- Country of origin of the goods listed where the goods were produced, manufactured or assembled
- Sellers name and address
- GB or EU EORI number
CN22 and CN23 customs declarations for parcels
For parcels, either a CN22 or CN23 customs declaration form must be included with the above parcels. Packages weighing up to two kilograms with a value of up to €425 (£270 for UK) require a CN22 customs declaration. The CN23 is used for packages weighing from two to 20 kilograms with a value of €425 (£279 for UK) or more.
The CN22 form is less detailed than the CN23 form. Often, it is attached to the address side of the parcel in the form of a sticker. The CN23 form contains more detail. It can be attached to the outside of the parcel in a transparent envelope along with a CP71 form*. If possible, attach this envelope on the same side as the shipping label.
