Global expansion, localizing content, and selling in multiple currencies and languages
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.
Shay | Social Care @ Shopify
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Just a quick FYI - I had the date format wrong. I'm sure you will spot this when you upload but the format needs to be yyyy-mm-dd
Hi @LauraECY ,
Yes thank you. After a bit of fiddling it is finally uploaded successfully. Thank you for your help! If you didn't send that screenshot I would still be completely lost. You're a star!
Is the IOSS symbol generated automatically if we enter our IOSS number on click and drop? Sorry, I may have missed this info earlier in the thread.
Yes if you enter your IOSS number into your Click and Drop account under the setting section called 'Trading Names' it should automatically print an IOSS symbol on your postage labels. I would recommend checking each label to confirm as some people on here have mentioned it not showing up on some occasions.
Has anyone run into trouble with 0,00 EUR transactions? We ship ~5-10 replacement units a day at no cost to the customer and since pre July 1 they were under the 22 EUR threshold they just went DDU. A twist in IOSS is that it's not just collecting VAT, it's collecting duty (HTS) as well so even a 0 EUR item still has underlying "value" that could be dutiable. What's happening is that neither Taxamo nor CBIT (we use both... long story) can process IOSS for a 0 EUR transaction so the orders ship DDU and some customers are getting charged really high amounts and getting justifiably annoyed (remember this was already a customer with a problem!) What are we supposed to do in this scenario?
@Candi_Q Sure, that's OK for one's and twos but it's probably not compliant- it's not actually a sample after all. Fact is, our 3PL tells us that no one is really sure what is (or is not) compliant so maybe I'll just go ahead and do it. What a mess
If we were to build a plugin that integrates Taxamo with your Shopify store, whereby you're able to just input your Taxamo details and have it automatically integrate with the Taxamo system would this be of interest to anyone?
We'd probably have to charge $5 / month or something similar to cover our development costs - separate to the costs form Taxamo. Would this be of interest to anyone?
Yes, definitely! ASAP please!!
YES!!!! That would be amazing...
We'll be interested in this solution to use our already registered Taxamo service.
Good luck with that. Taxamo has *extremely* strict requirements and won't use Shopify/Avalara data for tax calculation *or* display. Also, as currently built, it doesn't work at all with discounts (although that's coming). I've been deep deep down this development rabbit hole. Happy to chat if you'd like (PM me) but don't get it in your head that you are just going to pull Shopify/Avalara tax data (which is easy and what CBIT does). It's a non-starter for Taxamo for compliance/liability reasons (their legal interpretation of compliance differs greatly from CBIT's- I'm not going to opine on that but Taxamo is very firm on it).
That’s because Taxamo are a ‘deemed supplier’ like EBay or Etsy rather than an Intermediary. If the VAT collected isn’t right, only Taxamo are liable. Do they have a method of recouping under-collected VAT from their sellers?
Speaking of incorrect VAT amounts, I got a reply from the Swedish Tax agency. They confirmed the VAT must be collected on goods and shipping for IOSS consignments, as expected. Crossborderit are registered through Sweden, so I guess we're getting different advice. Weird huh.
"That’s because Taxamo are a ‘deemed supplier’ like EBay or Etsy rather than an Intermediary. If the VAT collected isn’t right, only Taxamo are liable. Do they have a method of recouping under-collected VAT from their sellers?"
Ohhh that's super interesting and makes a lot of sense. Taxamo only collects and remits VAT based on *their*