I'm not sure how to put in a features request - please can someone tell me if this way doesn't work.
I have been looking into how as a small business I can improve the experience for my EU customers of purchasing from myself, post Brexit as a UK business.
Royal Mail have recommended a company called Taxamo assure which acts as a IOSS. They calculate and charge the customer VAT and pay it to the EU on our behalf without us having to fill in the VAT return. They charge £2 for each transaction. It sounds like the perfect solution but unless you are a shopify plus business one cannot get access to the Shopify checkout and do the API integration. The irony is if you are a shopify plus customer you will be big enough and it will be more cost effective to set up your own IOSS.
I have spoken to support about this who have suggested that I put in a feature request. So here it is. If more people can also express an interest in this feature it may have more chance of being implemented and go somewhere to ease the Brexit headache of doing business with the EU.
Solved! Go to the solution
This is an accepted solution.
I understand that you don't have Registration Based Taxes setup on your store at this time. If you are selling to the UK/EU this will be an important step for you to complete. Depending on your tax setup you had on your store when we rolled this feature out, you may not have been automatically opted in for it. If that is the case you will want to contact our live support and let them know that you need to enable "Registration Based Taxes" on your store. From there, they can reach out to the appropriate support teams internally to get that feature enabled (Feel free to share this forum post for context). You can also see more information on this here: Manage Your UK Taxes.
To contact our live support please follow this link: Shopify Help Center - Contact Support, sign into your store account, search for your issue and use the contact support button at the bottom of the search results to see all our live support options.
As @Savvy_Paul shared in their screenshots, registration based taxes allows you to provide your tax registration ID for the appropriate countries/states/provinces you sell to and uses our automated tax system to check the appropriate tax and apply it at the checkout. After July 1st, this will be updated to include your OSS/IOSS registration information to capture taxes on orders that meet the specific threshold requirements put in place by Brexit.
In regards to the integration of an external services to work as your intermediary for businesses using the IOSS model, I want to reiterate that your feedback here is being shared with the appropriate teams.
I know that while IOSS registration is not mandatory, the simplification of the checkout experience it provides is definitely the ideal option for businesses with a lot of sales to the UK/EU. At this time, because IOSS is not a legal requirement Shopify does not provide a built in integration for an IOSS intermediary.
Based on the information that has been shared in this thread, Taxamo does offer an integration solution but that is restricted to our PLUS store plans as it requires access to the checkout API. If there are other options available for this integration, the ability to offer it is entirely in Taxamo's, or any external providers, hands to create. They have full access to our API documentation and can develop and list their app in our app store. If they require any support from our developers, that is something handled by a team outside of my own and I am not able to provide additional insight into that process on the back end. Shopify does not control the integration of third party apps and services and if you would like to have features provided by a third party company (Like Taxamo), you will need to contact them directly to ask them to create a suitable app integration.
I am going to mark this response as the "Solution" to make it easier for other merchants to see the information shared here. Please feel free to continue sharing your feedback and I will answer any questions I am able to.
It could be worse...but it could be a lot better.
Shopify is facilitating automatic calculation of VAT by individual EU destination, at checkout. That's a definite plus.
However, filing daily manual reports to an intermediary is not going to be a lot of fun.
If that continues, then I would expect clients to be demanding to look at other platforms.
At the time I didn't enable registration base taxes on my store because I am not registered in an EU country to collect VAT. The feature was completely redundant to my store. All I needed to do to be compliant on 1st January was to zero rate VAT to all EU customers. And now that I need to collect VAT for IOSS, I can't because there is no solution. Your solution is only for large stores that are using OSS and can afford to pay for an EU intermediary for IOSS, but for the rest of us it isn't.
So for a seamless integration of a DDP checkout we need to pay 2k USD a month? Yikes.
Kind of weird how a Shopify staff can mark their own post as a solution when the users clearly need something better.
I really urge the Shopify team to come up with something better, your competition has better offerings and my small business is heavily reliant on EU sales. As per this thread and others I know I am not alone.
@Shay As you can see, this isn't actually solved and this will continue until we all find a solution to the issue which is affordable to smaller UK merchants. Thank you for clarifying other points but as aforementioned, nothing has been 'solved' for anyone who has contributed to this thread thus far in relation to IOSS.
If any other UK merchants find an alternative solution to this please post here.
This is useful info although dated now as we are just looking into this for our store. We hear CrossBorder has still got a lot of teething issues? Has anyone tried Ship24?
Or any easy to integrate app for a small business?
That's good to hear Boo14. How long have you been using it? How many orders do you ship to the EU per month? Any issues so far with payments and charges? Just calculating fixed monthly costs for the App to justify integrating it. But I guess it gradually will balance off as EU sales grow.
When you calculate the tax and duties at the checkout @Dbaca you must require the HS codes for our products. Where does your app get this from?
Please can someone advise we are set up on shopify with cross border and all automated.
However if a business customer purchases for item under €150 is there any way they can enter their VAT number so that VAT does not need to be applied and they are resposible for paying the import taxes.
I have just had a sale and now have to refund the VAT we collected, and then go through Cross border to amend
Hey Dbaca, just reading your charges:
Thank you for your help with the IOSS initially when we needed one. I cannot fault the service and in particular your customer service and response time. However, as our store isn't open all year round, we are not able to take the increase when not selling anything. No one would be expected to pay for a service they were not using, and, as a small business we can't. Once again thank you for your help and support with the IOSS.
EAS. Do you work with sole traders or only limited companies ? I ask because your registration process requires a copy of company registration documents, seemingly ruling out sole traders. I'm also asking here because you have not replied to this question on your chat box despite leaving email address, twice now. Think you have to do better.
We DO work with sole traders!
Apologies for missing your questions. We will do better.
What is required is UTR, I think SA302, anything that identifies you as a business. IOSS is B2C scheme so that is what we have to show.
Deloitte is far too expensive if you only sell a small amount of items to the EU each week. There is a £300 joining fee then a yearly charge from £2000, whilst this is a good option for larger merchants, it is not really something I would even consider as we are a small business.
We have closed our store as we are re designing it and we may have to close our orders to EU customers when we re launch, this is not ideal, but if customers are having to pay the VAT and any customs duty to have their £25 tee shirt released from customs, we will have a great many items returned to us. We had hoped by now that Shopify would have catered for all its UK merchants so that we can simply integrate an affordable system where EU customers can pay for their goods, including the VAT at POS to avoid extra charges at customs and delays in delivery.
As a platform that provides a base for merchants I am so suprised nothing has been done and we only have 6 days until the new regulations are implemented.
If shopify do not act on this they will lose many of their UK merchants who will have no choice but to move to a platform that has the seamless requirements in place already.
Taxamo is only charging £2 per parcel sent to the EU, they file the VAT to the EU on your behalf AND you use their IOSS number, sounds very simple and affordable to UK merchants.
shopify you really need to get your developers on this pronto please.
Desperately echoing the thoughts of all other posters - the Taxamo integration would be a huge boon and reduce what is currently a massive headache for any Shopify sellers who export from the UK to the EU. We need this soon!
If folks are looking for a simple solution that is easy to calculate https://www.crossborderit.com/ioss . We offer IOSS services with a flat fee of 1€ per transaction. There is a ton of ambiguity on the topic and I worry that people are overcomplicating this and that tax services are under complicating it. I am happy to help or answer questions.
Hi Dbaca (Crossborderit)
Can you confirm how long it usually takes to get an IOSS Number through after registering with you please? Also from a manual submission of the information (as most of us won't have access to our Shopify checkout's for API integration) can you provide any information on how this would need to be submitted to you?
It takes 1-3 days to get a number. You will receive a message from the Swedish tax authorities. There will be a manual upload for the short term into our system but we have a Shopify extension in beta right now so hopefully it can go automated in about a month.
I looked at this and was quite alarmed to see two false statements in the first paragraph, I stopped reading here as I lost complete faith in your product. I suggest you fix this
I see the confusion and will fix the web copy but to clarify.
The idea of the IOSS is that the merchant collects the taxes on behalf of the customer. So it can be paid in the buying country. Yes, that is confusing and I will clarify it.
The second statement I will also modify. The meaning here is for IOSS of course there are both duties and taxes for high-value shipments but it falls out of the IOSS Protocol.
I will fix the web copy. Thank you for calling it out.
it was the use of the word 'require' that is incorrect - it is optional to use a IOSS
the second incorrect statement is that you state there was no taxes charged on shipments under 150 euros prior to July 1st when in actual fact the threshold was 22 euros up until July 1st - so there was VAT charged on sales under 150 euros.
I would not trust a company who's supposed to be an expert in these matters and has got the above two points wrong. I didn't read any further so I don't know if there were any other incorrect details
I just got this from TAXAMO:
At this moment, there is no integration between Shopify and Taxamo.
Our developer's team is currently working on the integration with Magento; their efforts are concentrated on this and we expect to launch this plugin in the coming weeks. We are aware that other plugins would benefit from a direct integration; you can be reassured that we will let you know when this specific plugin integration will be launched.
Having said that, you can build a custom integration by using the Taxamo API; for that, you would need to avail yourself of the services of a developer of your choice.
- Does this mean it is possible to integrate if we use a developer?? Or is that what was mentioned before: can you only edit API if you are on a shopify plus plan?
Crossborderit looks like it might be the answer for us. We've had a look at the terms of service, which seem onerous which is understandable and had a couple of questions.
1. The Power of Attorney (appendix 3) is a strong legal document please this will only relate to EU customs duty and tax payments and has no authority over UK VAT etc.
2. In the event of cancellation (5.1) it seems reasonable that CBIT has the right to invoice for services rendered but what does the 100% cancellation fee mean? 100% of what?
Thanks for your help.
Not sure why but DPD is already requesting the number for european sales for certain countries over the last couple of days.
We have signed up with crossborder and have our IOSS number and have been able to enter it.
My only issue is why is it a requirement by DPD already and now that I used the number how do I notify crossborder as they have not been touch for any payment or how to upload spreadsheet.
The actual sale was on Amazon but still needed a number to process as Amazon not issued theirs yet.
How soon after receiving the IOSS number does a company have access to payment and uploading shipments into your system?
We've received our IOSS number but have no instructions on how to implement orders and make the relevant payments through your site.
Have received the email with instructions, but I don't see the "Upload" tab in my Crossborderit CBIT account? Is anyone else having this issue or is it not quite live yet?
A quick update in case others are having the same issue...
We have an IOSS number from CrossBorderIT and I logged in to Shopify to try and update the tax settings to account for it.
I was following this information from Shopify help but we do not have these settings.
I had a long discussion with Shopify support, including setting up a new shipping zone called European Union but our Tax regions only show a full list of countries rather than the shipping zones and specifically not one for European Union. I asked if we needed to set up Registration Based Taxes and the support agent couldn't say if that would fix the issue. We decided to go ahead with that but I am still waiting for an email to allow us to make that change as I am not the store owner.
I will update as I make progress through the process!!
A quick update on where we are up to.
Having the "Registration based Taxes" authorised gave me the correct settings for collecting tax on EU orders below 150EUR. I entered our IOSS number provided by CrossBorderIT and tested a few addresses in our drafts. The taxes appear to be being applied correctly. I will be attempting to upload a couple of orders to CBIT this morning.
We have also realised that we can't continue to use the Post Office Drop and Go service as they have no way of processing IOSS post, so have had to set up Click and Drop with Royal Mail instead.
It does feel like we are making progress!
How has the exporting to Crossborderit gone? I am considering this option.
It seems the only potential solution for Taxamo is to pay a shopify expert to integrate it. I imagine this won't be cheap.
Thank you for your quick response!
Okay, sounds pretty good so far.
I am already on Royal Mail Click and Drop but just doing pay as you go. Hopefully this won't be a problem.
I thought commercial invoices were optional but I will look into doing this as never done one before.
Seems like this is the only viable option for a brand new and very small business.
Thanks again and I hope it goes smoothly for you!
Thanks for your updates, Laura. They have been very helpful! I have just uploaded our IOSS number from CBIT today and am on a 'chat' with Shopify at the moment to make sure that all is set up correctly. Having read your latest message, it looks as though we are going to have to change from Drop and Go, too! I will have to look into this now. Good luck, everyone!
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