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.
I have contacted Taxamo Assure and they have been hopelessly unhelpful!
They keep fobbing us off with links to 'guides' but cannot give any specific information about how to integrate with Shopify - it feels like Royal Mail have recommended them without actually checking that they can deliver the service/solution.
It would be AMAZING if the Shopify technical team could simplify this and help their users integrate Taxamo Assure - ultimately having this integrated will ensure sales to Europe don't drop!
I found taxamo ridiculously unhelpful as well when I contacted them, it's like they've invented a car but there's no fuel to put in it
Update on TAXAMO - 21 June 2021
I kept on asking Taxamo for specifics on integrating their solution - this is their latest response to my questions in case of use to anyone? They don't really say much of use, but someone technical might understand their response??
What isn't clear is HOW we integrate or HOW we use your service?
First you need to register and create an account. This will give you access to the Taxamo dashboard. Then you can integrate with Taxamo's service, either by coding directly to our API, or by using a plugin that connects your platform to our service.
We'd like to work with you but we can't see how we can do that...it's not clear anywhere how you integrate with Royal Mail? Is there an automatic integration in Click & Drop?
There's tons of technical information but it's not clear how your system and Royal Mail work together and how we as customers can use your service when shipping with Royal Mail.
Taxamo does not integrate directly with Royal Mail or other carriers as this is not necessary. You can continue with your existing connections to Royal Mail, and whichever payment processor that you use, and simply integrate with Taxamo for your tax calculation and reporting. In other words, you simply need to insert calls to the Taxamo service into your existing process. Taxamo will determine when we can take the liability (generally this is for parcels with a value under €150 within the EU). If we can then you will supply Taxamo's IOSS number to the parcel carrier.
SHOWING 'LANDED' COSTS
In addition, in case of use to others (UK based businesses) we have taken the decision to hold off registering for for IOSS in an EU member state in the short term. This is largely because we don't want to deal with an intermediary to file tax returns on our behalf and we want to see if HMRC go ahead with a UK IOSS portal (which the HMRC website hints is in the works but won't be ready by July 1st). We're also trying to workout how our accounts system can manage yet another VAT scheme on top of UK VAT and VAT MOSS.
If HMRC do have an IOSS portal then it may be possible to file our own returns in the UK etc. So, we have decided to go ahead and in the short term ensure that EU customers can see the extra import/VAT costs at checkout in the short term so they are fully informed and no nasty surprises, returned parcels etc. We'll also create a short video letting EU customers know, lots of signposting on the store etc. and update all T&C's to make sure people know about extra costs.
We currently use a combination of Easyship (a Shopify app) for our UPS shipping management and also Royal Mail Click & Drop.
Easyship integration helpfully provides a dynamic checkout for 'landed' costs and shows extra VAT/duty/import costs on all our UPS shipping options.
However, with RM Click and Drop we use the static Shopify shipping tables. So, digging into this it turns out that Easyship now integrates with Royal Mail if you are a Royal Mail OBA customer (Online Business Account). (Sorry if everyone knows this already, but we didn't as it wasn't available when we set Easyship up a year or so ago!).
The good news about the Royal Mail OBA integration is that Easyship say that once connected, Easyship will also present dynamic landed costs at checkout showing Royal Mail postage plus any additional taxes etc. So we're going ahead with integrating Easyship and our Royal Mail OBA account in the hope that we can present landed rates and all shipping options going forwards.
We did look at the app ZONOS on the Shopify app store which offers a way to present 'landed' costs but we're not happy about the extra fees - they charge a monthly amount which is fair enough but they also charge 1.9% of ALL your sales based on gross sales including VAT, shipping, products etc. Yes, you read that right - ALL YOUR SALES.
Anyway, just sharing this. info in case helpful in the interim to other stores.
Will update for anyone who's interested as soon as we get through the joys of RM and their OBA set up process!
I am also hoping to use Taxamo but their API option does not look possible with Shopify.
I will wait and see what Royal Mail PDDP cost are and maybe go with that for now - although I think it will be expensive, so EU shipping cost will have to go up until a better solution arrives.
I have been in a panic with the 1st July deadline in my head, but it seems even the EU isn't ready for the IOSS !:
"Germany has confirmed that its IOSS portal will be delayed until at least 1 January 2022, which may likely cause issues for suppliers, postal operators, express carriers, and customs agents established in the country."
So until the Royal Mail PDDP option comes up, we will keep EU orders open and just have to email them individually informing them of the cost before their order is shipped - not ideal, but less work then having to deal with refusals and returns.
Some alternative solutions/information we've looked into in case of interest:
AVALARA - spoke to a rep from this company. They already work with Shopify and are automatically part of the Shopify Plus plans. The rep I spoke with said he 'thought' that there were some discussions underway with Shopify about offering their solution to all Shopify plans in light of the July 1st changes - but he had no concrete info.
A question for @Shopify to confirm/deny...
Avalara can do the following:
IOSS registration for your business (you have to register via an intermediary), the ongoing IOSS intermediary work and ongoing compliance/monthly returns etc.
As an Avalara customer you get access to their Customer Portal, which centralises your VAT accounts. You will see a clear overview of what has been filed, which returns are due and how much VAT you have to pay to your IOSS registered tax office (they register in France I believe). You upload your data onto their secure portal. monthly, and their team will take care of the rest.
You can pay annually / twice a year or quarterly (below are annual payment costs)
One off fee for IOSS registration £415 + VAT
Annual payment intermediary services £768 + VAT per year
Annual compliance/returns services £1440 + VAT per year
So ignoring the registration fee, it's £184/month +VAT
Minimum contract term is 12 months
They also sent this link - haven't watched it but in case of use I'm sharing
Guy I spoke to is UK based and called Zavier Bailey firstname.lastname@example.org
We have also requested information from another UK company called VAT Digital who offer IOSS services - https://www.vat-digital.com/service/import-one-stop-shop/
Waiting to hear back from them with pricing - will update when we know more.
I would also request Shopify to have developers make the Taxamo integration into Shopify.
I use Royal Mail, and they are recommending us Uk sellers to use Taxamo.
but it seems there is no proper integration done between Shopify & taxamo.
I am sure there are many small UK businesses like me, who really need this integration to happen.
please Shopify, can you respond to this demand?
I am in the same boat as you. Taxamo appears to be the only suitable and affordable option for small UK merchants wishing to continue selling in the EU
Yes, We have no contract.. If you change your intermediary you can change to someone esle. There is no obligation. We only charge if you use our service.
I emailed your company earlier in the week with no reply, can you please clear a couple things up for me?
You state pricing "starts" from €1, can I please see a more transparent pricing structure?
What is your cancellation policy for this service?
Yes we are a little overwhelmed with actually getting people signed up. Make a request for more info and I will give you my number.. We can have a brief chat and you will be clear on how we are working.
We’re a UK business exporting snacking items to the EU.
We would like to register under IOSS via you as an intermediary to provide our customers with a seamless experience when ordering from the EU.
Please can you give me a quick call to discuss how this will work as I have a few questions before signing up.
Is the 19.99 a month required? I wanted to use taxamo because it didnt look like there was any monthly fee just a fee for each parcel. I dont know how much i will sell to eu each month and for small business like me 19.99 is quite alot if i dont end up sending a lot one month.
We have worked through the Taxamo API connection for both Plus and non-Plus stores across 4 our EU Plus stores. It's pretty complex but doable if you have a good developer that supports Shopify. It's kind of crazy that Taxamo chose to support Magento and *not* Shopify!
I might be able to provide the API configuration as service to other stores but I don't see us going through a formal App process. Also, we could probably set up CBIT too but haven't looked at it yet. Damon let me know if you want to chat about help with your API (you've chatted with several of my eCom friends this week but we were already deep into the Taxamo rabbit-hole!)
Hi Kevin, so are you saying that it is possible for a developer to access the cart to make the necessary adjustments for Taxamo even if you aren’t on Shopify Plus?
I would be really surprised if this is the case for non Shopify Plus stores. (Adding Taxamo) Shopify are notorious for keeping their checkout "locked down" and when I spoke to PayPal about this a while back they weren't optimistic at all about it. Lots of options including Taxamo on Woo Commerce stores but as always, UK/EU stores always appear to be a sideshow to Shopify, I'm daily fielding emails from customers in Channel Islands or IOM being told that their postcode is not a UK postcode and they can't place an order.
I've literally been banging my head against a brick wall trying to get this sorted. I didn't realise it wasn't actually possible yet!
I'm all signed up to Taxamo. Is there a way to use their services and manually entering the information until we get some sort of integration?
If you would offer that service in the near future of connecting Taxamo for non-plus stores, I would be interested to hear about it.
I am only a small business, like a lot of us here and it would make a big difference to not commit to monthly fees and Taxome seemed like a very good alternative for that.
no mention of 9.99 a month when i signed up for taximo. I signed up then found out it is useless to me as i cannot afford shopify plus to use the api
Yup i just only started reading up on how we will need IOSS from july and wanted to use Taxamo since i dont have an EU established intermediator but alas i cannot find out how to connect to my shopify, and so i stumbled upon this post. How annoying! I alrEady have a bunch of EU pre orders i cannot send until Late july or august so i am just going to have to send them and the customer will be forced to pay DDU 😞
Agreed, this is something we really need. Royal Mail are pushing it in the UK as a suggested route but whats the point if it doesn't integrate with the largest eCommerce platform around.
Does any one know any pay as you go alternatives to Taxamo? I only sell a few products abroad and it is not viable for me to subscribe to a service which is going to cost thousands a year.
Taxamo is a pay as you go service - £2 per transaction, no subscription but I do not know of any others. I guess if an integration app is developed then that will be another monthly fee... A developer has contacted me regarding this post and I've asked them to have a closer look at how it can be integrated with shopify, they are suggesting it may not need access to the checkout so fingers crossed. I will update this thread once I have heard back from them,
I had contacted Taxamo also but I could not link it with my checkout. Taxamo is €2 per transactions
I have found an interim option Crossborderit. Their IOSS registration is €19.99 per month plus €1 per transaction and they do the submition monthly on your behalf. It took only 1 working day for them to get back to me with the IOSS number. Their plan is for a minimum of 3 months.
The other option, i found was shipping with SAMOS they offer a great price if you are shipping multiple parcels per week. They are flexible for those who do not have an IOSS. They will still need to collect VAT from the sale.
As a result to be compliant we needed a VAT number, an EORI number and now an IOSS number. I relly hope everyone finds a solution to suits their needs.
Crossborderit will have a Shopify app for customers very soon. We will roll it out to all users after that but will begin with our current customers.
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