EU Import One Stop Shop (IOSS) support

SimonBig
New Member
1 0 1

Has anyone implemented Taxamo with Shopify yet? We only have a small number of EU orders at the moment so this would be ideal for us.

tabishh837
New Member
7 0 0

I too have been asked to look into this for our ecommerce store. 

I have all the same questions as Max & Marshall. 

Would there happen to be an help on this?

 

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jestsanti
New Member
2 0 3

According to the source posted below, we are not REQUIRED to collect EU Taxes, it is more of a courtesy so our customers do not have to pay them themselves (like they always did). Since we are based in the USA with no stock stored in the EU, we have chosen not to register, our customers are used to paying the taxes, they know that and it is indicated at checkout on our website:

"It is optional but when a company is IOSS registered it must comply with IOSS rules. IOSS will enable non-EU sellers to register in just one EU Member State to centralize their VAT declaration and payments for all EU-bound shipments. If you decide not to declare the VAT centrally, the Member State of consumption (the destination country in the EU) will become responsible for collecting VAT on the goods. If you are not registered for the IOSS scheme and are not using any customs prepaid solutions, any import tax and customs duties in the EU country of destination will be charged to the EU shopper upon delivery of the goods. This would considerably impact the shopping experience for your customers based in the EU. For businesses outside of the EU, it is advisable to register under IOSS and appointing an EU-established intermediary to fulfil their VAT obligations under the IOSS scheme, unless the seller’s country has signed the VAT mutual assistance agreement with the EU (only Norway at the time of writing)."
My source is: Asendia, they won´t let me post the link here, but will post a screenshot.
 
So, we are actually NOT required to collect VAT Taxes in EU Countries (yes in the UK), it is optional. Here is the source: https://www.asendia.com/all-you-need-to-know-about-ioss-and-vat-rules
 
 
Max1957
Excursionist
24 0 19

I agree totally. I am a small business based in the U.K. that sells physical product worldwide with orders ranging from a few £/Euro to a few hundred £/€.  This is one of the reasons that I started this whole discussion. Despite having researched widely, One thing that I understood for the first time yesterday is that the U.K. DOES NOT have a mutual assistance agreement with the EU and therefore U.K. sellers must use an intermediary. This really complicates things for Shopify sellers. I use Royal Mail Click n Drop for postal service and the Shopify to Click n Drop integration is key to my business. How all of this is going to work in an IOSS scenario is a mystery to me. The Royal Mail advice is dubious, but alludes to future solutions. If anyone can shed any light on this please do. 

SarahFB
Excursionist
10 0 7

I'm in exactly the same boat, selling similar values and using Royal Mail Click & Drop. I'll keep waiting to hear more. I may have to temporarily stop EU sales or send DDU. 

I'm a sole trader, not registered for VAT in the UK as in nowhere near the threshold and I'm unsure accessing the IOSS means I'd have to register for VAT here too. 

Bibico_Admin
Excursionist
28 0 9

I recently found this company who  allow you to use their ioss number which means you don't have to register yourself and pay high reg fees. They charge per packet like taxamo but seem cheaper and the customer service is much more responsive.

https://www.crossborderit.com/ioss

I have not tested them out yet as I am still waiting to see if there are any last minute changes but they maybe a good low option to start with. If new options appear in the coming months at least you have not invested alot of money upfront.

 

 

 

SarahFB
Excursionist
10 0 7

Thanks, that looks interesting for sure.  Like you I am holding off signing up to anything in case anything is made clearer/easier for those of us in the UK.  It would be so much easier if we were permitted to access IOSS without using an intermediary.

There are a lot of IOSS pay-as-you-go businesses like this springing up. Don't forget that IOSS is not compulsory. You can still send DDP, but it is expensive, and likely to become more expensive. Using a Pay-as-you-go IOSS system at £2 a piece means that IOSS (using an EU intermediary) will be cheaper if you are sending (roughly) over 60 pieces a month. Hope that helps!

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SarahFB
Excursionist
10 0 7

Hi

Thanks for your input.  I just don't know what to do for the best right now, except suspend shipping orders to the EU until I've found the best solution for my business. 

I'm a sole-trader, there is no way I send more than 60 parcels a month to the EU.  This year to date I have only sent about 50 to the EU. Last year I sent 150 in total.  In the run up to Brexit I had a lot more orders from the EU.  My main custom is from UK, USA, Canada and Australia with Germany being the most consistent country sold to in the EU by a mile.

I am not familiar with dealing with VAT returns as I'm not VAT registered in the UK, my turnover is nowhere near enough and I can't find reference anywhere to whether a non-UK VAT registered business will have to register for UK VAT to submit EU taxes??! I don't want to risk sending parcels DDU as I am sure it will be a shocking experience for the customer with long delays and not knowing what the local postal service handling fee will be. In the UK it's £8 but I have heard some horror stories about huge fees for handling parcels in the EU.

I send all my parcels via Royal Mail Click and Drop, printing my own postage and customs labels.  Royal Mail are working on a DDP scheme but it's still under trial and won't be ready before the deadline of 1st July and I imagine it will be expensive.  I used to sell wholesale to some EU countries, mainly Germany, so I will have to use DDP for those wholesale orders above 150 Euro.

Foxxycarr
Tourist
6 0 2

Hi all, newbie here in the same boat as most of you.

One question I have before I rush out and sign up for anything in EU would be does the UK Limited Liability status for your company (if you are Ltd) stay in place legally if signing up in an EU country or do you all of a sudden become personally liable?

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