Even if a package arriving in Estonia from outside the EU is dispatched, for example, in November, but arrives in Estonia on January 1 or later, a new VAT rate of 22 percent must be paid on it, the logistics company Venipak announced based on the information of the Estonian Tax and Customs Board. For parcels arriving from Latvia, Lithuania and other EU countries, nothing changes, and the VAT is paid together with the purchase.
“The end of the year is also the peak season in e-commerce, and therefore it is worth making purchases early. When ordering from Estonia, neighbouring countries and other parts of Europe, you must take into account that both e-shops and logistics companies have plenty of work, but as a rule, orders move quickly and without additional formalities. However, one has to hurry when ordering packages outside the EU, if one wants to receive the shipment this year and pay the currently valid VAT of 20 percent”, said Martten Kaldvee, sales director of Venipak Estonia.
In the case of a package purchased outside the EU, for example from Great Britain, with a value of up to 150 euros, the recipient of the package must pay an additional VAT to receive the package, which is calculated on the value of the goods and the cost of postage. If the online store or sales platform has joined the IOSS special arrangement, VAT can already be paid at the time of purchase. This means that VAT is added to the purchase price, and when it arrives in Estonia, it is no longer necessary to pay VAT.
In addition to VAT, customs duty is added to packages over 150 euros. An order or package arriving from outside the European Union, the value of which exceeds 150 euros, the recipient of the package must pay customs duty in addition to VAT to receive the package.
Shipments should be well packaged and with accurate contact information
Venipak reminds that certain recommendations must be kept in mind when sending packages. First of all, shipments must be carefully packaged so that they reach the recipients safely. In addition to unsuitable packaging, a wrong or incomplete recipient address is a headache for logistics companies. This means that extra time must be spent to find the exact customer information and deliver the package. It also happens that the recipient’s phone number is incorrect, which may delay delivery. Although most packages are of a certain size and weight, non-standard packages may occur. This means that it is more difficult to receive the package.
In the case of courier packages, it is worth noting that if the recipient cannot be reached by phone, his address or phone number is incomplete, or the delivery schedule is affected by bad weather or traffic conditions, the courier will make another delivery attempt the next day. The task of logistics managers is to ensure that the service is as high-quality as possible, and they try to contact the addressee by e-mail or phone. The delivery attempts to the customer will take place on three working days in a row, with the aim to find the best delivery time. If the delivery somehow fails, the goods must unfortunately be returned to the sender.