EU VAT changes

VAT Changes

As of 1st July 2021, the EU is changing the way that you must pay tax when purchasing from abroad. We have worked hard to make this as easy as possible for Vanishing Inc. customers, and even pay some of the charges for you. We’ll try to explain it with as few nerdy accountancy words as possible:

The change in brief ...

Prior to 1st July 2021, you didn’t need to pay taxes on packages entering the EU valued at less than €22. After July 1st, 2021 all shipments will need to pay VAT (sales tax).

This isn’t something that just affects Vanishing Inc., or magic shops. It affects all retailers in the EU and shipping into the EU. But the good news is that we have you covered!

What will it cost?

Each EU country has a different VAT percentage. We’ll provide you with the VAT cost on the checkout and will allow you to pre-pay it.

Does this mean it’s cheaper for me to buy magic in the EU?

Surprisingly not. EU countries were already charging you VAT, and now the law has changed to ensure that international companies charge it too. Because of our free international shipping, and because we pay the courier’s surcharges, it’s often still cheaper to purchase from the mighty Vanishing Inc.

Huh? How can that be, you ask. Well, most magic is wholesaled from the USA and so EU magic shops typically have to ship their products from the USA, and pay all fees which they typically add into their product cost. So, either the VAT cost is added to the price, or charged on import.

Are other magic shops doing this?

The responsibility for paying VAT is on the customer and not the sender. So we expect that other magic shops are choosing to ignore this new requirement (and we get it, it was a lot of work to do all this). But, sadly, by ignoring the new VAT rules, they are exposing you to additional costs, admin fees, delays, and paperwork. As a customer-focussed company, we decided to take on that responsibility and so we show you the cost upfront, which also ensures that your packages from Vanishing Inc. will not get held up in customs.

How does this impact magic shops that ship for free?

Free shipments are no different to any others. If you order a $4 deck of cards and use another magic shop’s free worldwide shipping, it could end up costing you about $15 admin fee, plus about $1 VAT and import duty when the package finally arrives. With Vanishing Inc., you would just pay the VAT.

Isn't there a 150 Euro limit on this?

What are you, a finance wizard?! You're right. The IOSS scheme only applies to payments under 150 Euros. If your order exceeds that, we give you the option of pre-paying your import duty instead.

I have a VAT number. Should I still prepay?

Nope. This only impacts consumers, and not businesses. But you’ll need to add your VAT number to your account so that we can include it in the customs declaration. (If you don’t add a VAT number before we ship, we have to assume that you are a consumer, not a business customer.)

Add your VAT number

Are books still VAT free?

VAT costs depend on the country you are shipping to. However, most countries offer zero-rated VAT on books.

If you have any questions, feel free to get in touch with our Support Wizards who have all impressively got their heads around this new EU VAT process!