Folksy Ltd

New EU VAT Rules - what you need to know and do as a Folksy seller

As you may already have heard, the EU is making changes to its VAT rules which come into force tomorrow (1st July 2021). The new rules apply on orders valued at under €150 to customers in the EU. As a marketplace, it is now Folksy’s responsibility to collect and pay VAT on these orders.

This means that, as a seller on Folksy, you will not be responsible for collecting and reporting VAT on orders to the EU valued at €150 or less, and you will not have to register for IOSS (the EU’s Import One Stop Shop) – unless you also sell through your own website.

Please read this article which explains what we are doing and what you need to do if you want to continue selling to the EU - and please also bear with us while we put all the necessary changes in place at the checkout and notifications. It’s a big and complicated job.

One important thing to note is that we do not yet have our IOSS number. Until it has been confirmed, you may want to either switch off orders to the EU or let you customers know there may be a delay in shipping. We’re acutely aware this isn’t ideal and sincerely apologise. Read the blog post for more details.

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Really helpful article - thank you :slightly_smiling_face:

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Just done a search for HS code for a knitted baby blanket and got nowhere. Seems selling only to UK will be the best option now

There is an email address that you can contact with details of the item and they will work it out for you (in your case it would have different codes depending on whether it is made from wool or acrylic), let me go see if I can find it for you.

@Knittingtopia here’s a link to the webpage which tells you the info they need about the item and the email address to send the info to is at the bottom of the page.

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Thank you so much. I’m finding it a bit of a minefield at the moment to be honest. As you say, I use different fibres so it’s not like all my baby blankets are going to be the same code.

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@Knittingtopia My best guesses:
blanket - wool : 63012000
blanket - cotton: 63013000
blanket - synthetic: 63014000
(if its a blend go with which ever is the main component)
baby clothing (knitted or crocheted) - cotton: 61112000
baby clothing (knitted or crocheted) - synthetic: 61113000
baby clothing (knitted or crocheted) - wool: 61119011

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Oh you are an absolute star :star2: Thank you so much :two_hearts:

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It’s about 6 weeks after this came into force and the items I sell on ebay and etsy are covered but is folksy still advising that we switch off orders to EU countries as above or have I missed an update?

It’s in the blog post, link at the top of this thread.

If anyone missed the blog post, just a super quick update to say we do have an IOSS number now. So if you sell overseas and receive an order from an EU customer, we will send you an email explaining what you need to do, and this will include our IOSS number. You will also be able to see the IOSS number on the order details page in your seller dashboard.

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Thank you for all this information.
Can I ask will Folksy add VAT on top of our listed price if a buyer comes from the EU, and will that be different for each member state?
Thank you

Very helpful thanks. All v confusing.

@morajewellery They will in the future but that’s not in place at the moment as changes need to be made to the site which take time to develop.
Folksy are paying the VAT until that’s up and running though.

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Thank you :heart:

My understanding is the IOSS number has to be entered electronically, but Folksy are saying to write it on the package? Is this okay, I thought not…

Yes it needs to be submitted electronically. If you are buying postage online there will be a box you need to fill in within your Royal Mail account, if you are buying your postage at the post office you need to tell the clerk what the IOSS number is so they can submit it, if it is written on the package there is less chance of them making a typo as they enter it into the system.