I received the following email from Stamps.com.
I do not understand this change. Currently, when my main product ($500) arrives to a country like Germany or France, for example, there are customs fees of about $80-$100USD charged and paid to their government by the recipient before the package is released. Is this new VAT truly in addition to that amount?
Meaning at 17%, which is the minimum and varies by country, there would be an additional $85 USD owed, making the total my customer spends for my product in the area of $685 USD? That is crazy and will absolutely kill my EU business.
Secondly, why/how would I, as a US vendor selling goods on my own website, need to collect and pay this amount to a EU authority? How would this be integrated into my checkout process unless the provider of my online store did so based on the buyers address? When are the new taxes be due to be paid? At customs or the foreign post? Does the shipping carrier have any bearing on this?
Is anyone else aware of this?