Last Mile - New EU VAT Ecommerce Regulation Driving GS1 standards forward - New EU VAT Ecommerce Regulation Driving GS1 ...
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Last Mile - New EU VAT Ecommerce Regulation Driving GS1 standards forward Marketplaces, logistic service providers and authorities will need globally unambiguous Identifications Jaco Voorspuij, Senior Manager Transport & Logistics 30th November 2020
Welcome & Agenda
• Schedule for this workshop Jaco Voorspuij
• Housekeeping Jaco Voorspuij
• Presentations and discussions
• What is this new EU VAT Ecommerce Regulation? Jaco Voorspuij
• What will GS1 do to support industry and authorities? Frits van den Bos
• Questions, Answers and discussion Thierry Grumiaux
• Closing
• Lunch
© GS1 2020 2
Anti-Trust Caution
• GS1 operates under the GS1 anti-trust caution. Strict compliance with
anti-trust laws is and always has been the policy of GS1.
• The best way to avoid problems is to remember that the purpose of the
group is to enhance the ability of all industry members to compete more
efficiently.
• This means:
- There shall be no discussion of prices, allocation of customers, or products,
boycotts, refusals to deal, or market share.
- If any participant believes the group is drifting toward impermissible discussion, the
topic shall be tabled until the opinion of counsel can be obtained.
• The full anti-trust caution is available via the link below, if you would like to read it in
its entirety: http://www.gs1.org/gs1-anti-trust-caution.
© GS1 2020 3
Meeting etiquette
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Avoid multitasking Keep comments concise
Be collaborative
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Speak on company’s behalf
Be open to other views
© GS1 2020 4
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John Doe, ABC Co.
© GS1 2020 5
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© GS1 2020 8
Setting the scene
Last Mile – New EU VAT Regulation
Putting the GS1 opportunity in context
Jaco Voorspuij; Senior Manager Transport & Logistics
30th November 2020; Global Industry & Standards Event Brussel
© GS1 2020
Potential
• Nearly 10 billion parcels per year
• > 25.000 online retailers in Europe
• >Thousands of carriers and service providers
• EU customs organisations
are waiting
for our standards……
© GS1 2020 10Our objectives:
• Make sure that GS1 Standards can be used for
all logistic processes
• Realise GS1 Global T&L and Marketplaces strategy
• New GS1 members
• New GS1 standards to further
facilitate online retail
© GS1 2020How we want to achieve this
Communicate value of
Influence CEN
GS1 standards
Standardisation work
GS1 standards to include SSCC
implementation for
Last Mile delivery
Create pilots to
demonstrate value of
GS1 standards
© GS1 2020 12We are making progress
S NL D
40 city hubs
© GS1 2020 13What may help us accelerate GS1 adoption
customs
VAT 2020
© GS1 2020 14Matching data
© GS1 2020 15Setting the scene-
What is the new EU VAT Ecommerce Regulation?
Understanding the GS1 opportunity
Jaco Voorspuij; Senior Manager Transport & Logistics
30th November 2020; Global Industry & Standards Event Brussel
© GS1 2020Global Trade – striking the right balance
How do I collect tax
and safeguard
security?
How do I deliver
my parcels?
© GS1 2020 17Parcelisation/Digitalisation of Global Trade
Digitalisation is a pre-requisite:
• for VAT, customs, safety, IPR,
to stop illicit trade
• All commercial items sent
across-borders require
electronic pre-declarations in
advance in the global Postal
network (70% of all
Ecommerce!) -> Common
denominator set by UPU-WCO
• National (regional) legislation
is (mostly) aligned to the UPU-
WCO model
Slide courtesy Walter Trezek (Ecommerce Europe) © GS1 2020 18Challenge - Matching Unit ID & Content
Based on ONE unique item identifier, customs, transport and inland revenue
aim at electronic advanced data (EAD) to know what is in the shipment,
its value and related lifecycle management
Declarations shall be lodged by
Status Quo representatives
Non- EU EU-
Consignor Consignee
-Guarantee paid to Customs
Most of the Customs
non-EU
No individual to cover taxes (incl. VAT)
receives person lodges
suppliers do not -Taxes are paid in advance on
lodge import NO DATA an Import
the import declaration
from the declaration
declarations -Consignee pays taxes to
sources him/herself
themselves
distant seller as part of Sale
© GS1 2020 19Customs may be overwhelmed with
a flood of diverse data
This is my Check
data
This is my data
This is my
data This is my This is my
data
This is my data
data
This is my
data
© GS1 2020 20What does this mean for standards?
• Unique Transport ID (barcode on the package / parcel)
• Unique Transactions ID all data available at the point of sale
• Linking the item ID (GTIN, HS Code) to the ID on the box
• Import duties & Customs fees: ID of the fiscal representative
• Event tracking & tracing of the box
-> enabling transport optimisation
& facilitating delivery preferences of recipients
© GS1 2020 21EU VAT Legislation
Game changer for International Ecommerce
EU targets Import Low Value e-Commerce Consignments
• Low Value Consignments imported into EU • Customs submissions increase
(European Union) enjoy simplified border 15-FOLD*
procedures; Regulations are often abused -
• Marketplaces/Webshops deemed Seller
Billions of Tax revenue lost to Member States
• Submission must be electronic
• 1st July 2021:
EU implements VAT e-commerce package • Submissions per Sales Transaction
requiring ALL items to be declared and • Globally Unique ID Keys for
taxes to be paid Sales Transaction (ISO 15459),
• EU commission LVC working group aims to Parcel (ISO 15459),
prevent incidents in 2021 EU IOSS Number (new EU Tax ID)
• GS1 is member of this group • GS1 ID Keys comply
*Just for FRANCE the new regulation means handling 350 million parcels versus 12 million today
© GS1 2020 22© GS1 2020
Innovative choices to fulfil the new VAT and
Customs obligations for Low Value Consignments
Impacts on customs of the new VAT rules
• An electronic customs declaration for all goods imported from a third
country
• Two new optional taxation schemes for VAT :
Import One Stop SHOP (IOSS) / Special Arrangements
• Customs obligations in case of use of the IOSS :
⇒ customs authorities check on the validity of the IOSS VAT identification
number in a shared European database for IOSS ID numbers.
Customs solutions (for authorities and economic operators)
• Implement the new electronic customs declaration named
“H7 declaration” with a super reduced dataset (Annex B, UCC DA)
• Amend or create a new electronic customs clearance systems to support
hundreds/tens of millions of declarations*
*Just for FRANCE the new regulation means handling 350 million parcels versus 12 million today
© GS1 2020 24EU VAT: Options for low value consignments
1. Special Arrangements: The courier collects VAT is collected and pays Customs
PROS: No change for the e-commerce platform
CONS: delivery delays at customs, multiple submissions in each EU country, platform
could be liable if discrepancies at customs*, no price transparency -
Consumer may end up paying much more** than she bargained for
2. Import One-Stop Shop (IOSS***): Marketplace collects taxes from the buyer
upon purchase and courier handles customs declaration
PROS: Price transparency, efficiency, not error-prone, centralised EU submission
CONS: Higher display prices (including tax)
EU Customs recommend IOSS solution
*depending on contract with courier – or if marketplace does delivery
**In Sweden, many Consumers would have to pay more than twice the price on the marketplace as a result of VAT collection upon delivery
***IOSS= Import One Stop Shop- Some marketplaces are building their own IOSS and pushing for IOSS to be mandatory (avoid unfair competition)
© GS1 2020 25Import One-Stop Shop (IOSS) - Definition
Facility whereby the marketplace/webshop
can fulfil all the VAT obligations
(reporting and payment) in one Member State
either by himself or through an intermediary appointed for this purpose.
The VAT paid by the consumer to the marketplace/webshop
at the time of sale
is declared and paid on a monthly basis
directly by the marketplace/webshop or his intermediary.
Hence, import of the goods into the EU is exempted from the VAT
© GS1 2020 26Process Overview – Export/Import
Stakeholders and Information Exchanges
2. Shipment handover 9. Cross Border Transport Instruction
Origin
Cross Border Transport
Carrier
Service Provider
6. Customs Confirmation II
7. Despatch Information I
3. Shipping Notification I
10. Consignment
Web
Information
Shop Logistics
8. Despatch Information II
5. Customs Confirmation I
Destination Destination
Carrier 4. Shipping Notification II
Customs / Tax
1. Order & Invoice Payment Clearance directed to tax authorities
Information In some MS linked to periodic tax declaration
Periodic Tax
IOSS intermediary Declaration Customs / Taxes
© GS1 2020 27
and Payment for IOSSChallenges in establishing visibility
Container Inland Inland Container
Production Inspection Wrapping Transshipment Warehousing Transshipment Customs Ship loading Ocean shipping Ship unloading Customs Inspection Warehousing Picking Delivery
Vanning transportation transportation Devanning
Production plant Warehouse Container Yard Vessel Container Yard Warehouse
© GS1 2020 28Our Vision: Common ID and label end-to-end
- used by ALL to access the information they need
Created & attached by
Seller SHIPPER at origin Buyer
HOMES
PICK-UP POINT
AUTHORITIES E-FULFILLMENT © GS1 2020
CENTRE
ONLINE STOREHow to comply?
Goods
e-fulfilment
e-fulfiment Origin Cross
Cross BorderTransport
Border Transport Destination
Destination Carrier Drop-off/Pick-up
Drop off/Pick up
Online Origin Carrier
company
company Carrier ServiceService Provider
Provider Carrier point
point
retailer/
Seller
Marketplace
Customs / IOSS
Data Taxes intermediary Customs / Taxes for
IOSS
© GS1 2020 30Global Data Standards included in H7
The Source – ISO 15459
• ISO/IEC 15459-1:2014 specifies the identification of individual
transport units.
• ISO/IEC 15459-6:2014 specifies the unique identification of
groupings of products, product packages, transport units
and items.
GS1 ID Keys comply with this ISO standard
© GS1 2020 31Import One-Stop Shop (IOSS)
Matching data
Product
Product Sales transaction
• Value
• Price per GTIN Tax
• # GTIN Transport Transport
Transport declaration Transport
HS code • Customer unit GSIN unit
unit unit
RECIEVED
• Delivery address
SSCC
• Seller
GSIN IOSS Number
GTIN • IOSS number GSIN
GSIN SSCC SSCC
Customs
declaration
SSCC
GSIN
IOSS Number
BRAND MARKETPLACE SELLER CARRIER TAX CUSTOMS CARRIER CUSTOMER
OWNER AUTHORITY
© GS1 2020 32Import One-Stop Shop (IOSS)
Matching data
Product
Product Sales transaction
• Value
• Price per GTIN Tax
• # GTIN Transport Transport
Transport declaration Transport
HS code • Customer unit GSIN unit
unit unit
RECIEVED
• Delivery address
SSCC
• Seller
GSIN IOSS Number
GTIN • IOSS number GSIN
GSIN SSCC SSCC
Customs
declaration
SSCC
GSIN
BRAND MARKETPLACE SELLER CARRIER TAX CUSTOMS CARRIER CUSTOMER
OWNER AUTHORITY
© GS1 2020 33Import One-Stop Shop (IOSS)
Matching data
Product
Product Sales transaction
• Value
• Price per GTIN Tax
• # GTIN Transport Transport
Transport declaration Transport
HS code • Customer unit GSIN unit
unit unit
RECIEVED
• Delivery address
SSCC
• Seller
GSIN IOSS Number
GTIN • IOSS number GSIN
GSIN SSCC SSCC
Customs
declaration
SSCC
GSIN
BRAND MARKETPLACE SELLER CARRIER TAX CUSTOMS CARRIER CUSTOMER
OWNER AUTHORITY
© GS1 2020 34What will GS1 do to support
Industry and Authorities?
Frits van den Bos; Project Lead Last Mile – GS1 in Europe
30th November 2020; Global Industry & Standards Event Brussel
© GS1 2020Implementation Support for
Economic Operators
• Standards and guidelines developed by CEN
• Harmonised Parcel Label TS 17073
(available since 2017)
• Electronic Advance Data exchanges ((TR 17535 / 17536);
Covers semantic specifications for EAD exchanges among all
stakeholders from Seller through to Customs/VAT authorities.
Completed June 2020
© GS1 2020 36The European Harmonised Parcel Label
FprCEN/TS17073
S10 as
worldwide Consumer
postal item
Drop off/Pick up
identifier point
or carrier
ISO licence
plate…. Government
an..35 Parcel Online e-fulfilment
integrator retailer company
Manufacturer
© GS1 2020 37Our Vision: Common ID and label end-to-end
- used by ALL to access the information they need
Created & attached by
Seller SHIPPER at origin Buyer
HOMES
PICK-UP POINT
AUTHORITIES E-FULFILLMENT © GS1 2020
CENTRE
ONLINE STOREScan4Transport label
• Connecting the GS1 SSCC with GS1 Digital Link it to the internet
• Provide basic information as backup within barcode using GS1
Application Identifiers
• Advantage:
- Shipper can communicate real time with stakeholders on what to do
with the scanned consignment
- no need to share all data upfront to all partners
- Mobile phones can be part of the track and trace environment
Scan4Transport session Wednesday 2nd December
from 12:00 – 13:00 CET
© GS1 2020 39Implementation Support for
Economic Operators
• Standards and guidelines developed by CEN
• Harmonised Parcel Label TS 17073
(available since 2017)
• Electronic Advance Data exchanges (TR 17535 / 17536);
Cover semantic specifications for EAD exchanges
among all stakeholders
from Seller through to Customs/VAT authorities.
Completed June 2020
© GS1 2020 40© GS1 2020 41
Next steps
• Marketplace Advisor Team to support this project
• GS1 description of the guidelines to be validated by the marketplaces
• Communicate the availability of the guideline with the help of our members
© GS1 2020 42We need support from different MOs
Who do we need?
people who will be active in standardisation work (e.g. under CEN mirror
committees, relevant ISO work groups and writing GS1 guidelines)
people who will actively work with their local industry and set up projects
to pilot or implement the GS1 based approaches
people willing to represent GS1 during international conferences/events
and present about the new Regulations and how GS1 can help.
© GS1 2020 43Thank you!
© GS1 2020Questions & Discussions
© GS1 2019 45Close
© GS1 2019 46Thank you all for being here
• Thursday morning 07:30 – 08:30 we will repeat this session LIVE
• Tuesday morning 07:30 – 08:30 we will have a session titled
“GS1 in Maritime – Full steam ahead”
repeated live Thursday afternoon 14:15 – 15:15
• Tuesday afternoon 12:00 – 13:30 we will have a session titled
“GS1 – Shaping future Digital Logistics Networks globally”
• Wednesday 2nd December 12:00 – 13:00 we will have a session titled
“Scan4Transport – Transforming supply chain operations”
• Hope to welcome you there again
• But for now enjoy your break
© GS1 2018 47You can also read
