Sometimes being a small business means we have to make tough decisions (that we don't always like)! Starting July 2021 there are new regulations for selling our product in the EU - the main one being the requirement for an economic operator in the EU and enforcing the toy product safety standards. What we have learned is that our products will be stopped at the border by customs and not delivered if we don’t have the packaging labeled with the economic operator information. We have researched this thoroughly, and the cost of having an economic operator in the EU to meet this requirement costs more than our current product sales in the EU.
We love our EU customers and appreciate your support of our small business! We have considered every possible scenario, and unfortunately having an economic operator in the EU is just not a financially feasible requirement for us to meet as a small business. We announced this on social last week, and so many of you let us know how disappointed you are. We are so sorry and we promise, we tried to find a way around this but in the end, even with many of your suggestions, our hands our tied. We are still working to find a solution before July 16, and if we do find a workable solution, we will update you here, via email, and on our social channels.
So what does this mean?
- Effective July 1, 2021, EU member states will collect VAT on all goods entering the EU. To avoid customers being charged VAT and fees higher than the value of goods, it is recommended that the merchant collect VAT at checkout and remit monthly payments to EU member states via the IOSS portal. As this requires contracting with an EU-based tax intermediary as well as IOSS registration, this burden is not one that our small business can bear. Therefore, effective July 1, 2021, we will no longer be able to ship to the EU from our website. Between July 1 and July 15, 2021, EU customers may still shop on our Etsy store.
- Unfortunately as of July 16, 2021 we will no longer be able to ship to the EU. Our customs brokers and attorneys all advise that regardless of the collectible nature of our tops and bases, the appropriate tariff code for our products falls under the category of toys, and is therefore subject to the new economic operator requirement. We have not found a legal way around this issue.
Here is a reminder to our UK Customers- we had to stop shipping to the UK when the new Brexit rules went into effect. Unfortunately, we cannot meet the new VAT and reporting requirements, so we are unable to ship any of our products to the UK.