This article outlines how Value Added Tax (VAT) applies to your Gelato orders within the European Union (EU). Keep in mind that Gelato is not a financial or tax advisor, and you should always consult with your accountant for specific VAT questions.
Understanding IOSS
The Import One-Stop Shop (IOSS) simplifies how online marketplaces like Etsy handle VAT for EU customers. When you connect your store to Gelato, your IOSS number is automatically added to your Gelato orders, streamlining the VAT process.
For Etsy, your IOSS number is automatically added for orders, so you do not need to add it manually. You can find your marketplace IOSS number in your Gelato store settings.
Gelato's Production and VAT Approach
With a network of over 140 print partners in 32 countries, Gelato offers local production and shipping for over 85% of orders. This means we produce and ship from the same country where your product is delivered, minimizing the impact of the new EU VAT rules on your orders.
You can learn more about our extensive production and shipping capabilities by visiting the following links:
How New VAT Rules Affect Your Gelato Orders
The new IOSS/OSS regulations, effective July 2021, require online sellers to collect VAT based on the destination country's rate. Here's how this affects your Gelato orders:
Orders Printed and Delivered in the Same EU Country
If your order is printed and delivered within the same EU country, the new VAT rules don't impact you or Gelato. For more information on VAT charges for these domestic EU transactions, please refer to this article.
Orders Printed in One EU Country and Delivered to Another
If your order is produced in one EU country and shipped to another, and you don't have a valid EU VAT ID, Gelato will collect VAT based on the destination country's rate. This article provides additional information on VAT charges for cross-border transactions within the EU.
Orders Printed Outside the EU and Delivered to an EU Country
For orders printed outside the EU but delivered to an EU country, and you don't possess a valid EU VAT ID, Gelato will collect VAT at the destination country's rate. This means we will no longer apply a 0% VAT rate for export sales to non-business customers, ensuring compliance with the updated legislation. More details on these cross-border transactions can be found here.
Orders Produced Outside Your VAT-Registered Country
If your order is produced outside the country where you are VAT registered, and you have a valid EU VAT ID, a 0% VAT charge will apply.
Additional Resources
For a comprehensive understanding of the new VAT regulations, please refer to the following resources: