The new EU VAT rule has been formally effective on July 1st 2021, all the packages ship to EU countries need to pay VAT, have you registered IOSS or find agent to help you pay VAT so you can sell in EU countries?
No, I am waiting for the services to mature. I have switched off EU orders. Since BREXIT has happened big orders have slowed from the EU so it's no huge loss for 1 month.
For small businesses who use Royal mail.
Taxamo is working with the Royal Mail on the IOSS where they will provide the seller with an IOSS number to display on the shipping label and they charge £2 per shipment. They also pay the EU VAT on the seller behalf. https://www.royalmail.com/import-one-stop-shop-ioss
I spoke to Taxamo just now and they said we need a programmer to add/program a 'code' in Shopify for Stripe and Paypal. https://www.taxamo.com/taxamo-assure-rmg
Taxamo integration process: https://integrate.taxamo.com/docs/integration-steps
I wish Shopify had studied this and listed step by step how to do it so that I could do it myself.
Reply from Taxamo:
Hope this email finds you well,
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.
Setup simply requires registering for a sandbox account which will give you access to the Taxamo dashboard and an API token so that you can integrate your checkout into our API. Once you have completed that, you just need to switch to a production account.
The system integrates seamlessly within your existing checkout process regardless of the payment platform you have integrated with your system. This allows providing real-time compliance without delay or disruption to the customer journey.
Taxamo Assure is designed to be self-service, because of this we are happy to share with you all material available, including our developer guide, FAQs, and API reference.
Shipping & Returns
TAP requires you to be integrated with the merchant’s website. If a merchant sells through a Marketplace (EG: Amazon, Etsy, eBay) Assure physical is not for them
Regarding marketplaces (Amazon /eBay)
our solution has been designed as direct integration to a merchant's own website, because of this if you sell to your customers through a marketplace like Amazon or Etsy, our solution is not for you.
Taxamo costs £2 per transactions. I have opted for Taxamo but there are no vides or tutorial for an integration.
It is so fustrating there is no help on how to actually set up. But I have requested the help of Shopify developers to see if they can help with the integration.
We had to stop EU sales from the 29th June as senders where refusing parcels without the IOSS number. They may create an APP for Ecommerce in the future.
AVALARA / DELoite
I have spoken with both companies andthe set up costs £2500 with Avalara and £2000 with Deloite plus monthly fees for the submissions. I am VAT registered and I have never had to pay this much for tax filing. This is crazy that this compliance costs so much.
Nothing so far...
As a small business, I'm literally lost on how to proceed with EU sales. I had to suspend it, and it highly impacted on my sales.
It's just unbelievable that Shopify didn't provide any integration for small businesses, only for the Plus plans, while other platforms did.
Still trying to find a way to integrate Taxamo or any other solution on my website but haven't find it yet. Seriously thinking about moving from Shopify, it's very disappointing.
"I spoke to Taxamo just now and they said we need a programmer to add/program a 'code' in Shopify for Stripe and Paypal."
Sorry. Not the way it is..
The changes you are talking about only possible in Shopify Plus, (think @£2000 monthly)
For the rest of us peasants, not possible to modify checkout in this way.
I found out that if you are selling via marketplace like Etsy, eBay and Amazon. They will provide you an IOSS number, collect VAT for you AND pay the VAT for you. With Shopify, you have to register IOSS yourself, and report your sale/VAT to EU like every 3 months. (this is the info I've learned please correct me if Im wrong) With other marketplaces you basically don't have to do anything...the only thing you got to do is ship from the marketplace, since that's how they includes their IOSS. I'm seriously consider open another Etsy shop because what they provided, even tho I don't like how they set up their store. So just an idea for anyone is looking for an alternative solution. It maybe pain in the ass to set up an Etsy shop but it's probably worth it to look into it.
You just need an intermediary and we do all of the reporting. Look at the Crossborderit app it is simple and easy when you turn on the Shopify VAT calculator.
IOSS is actually a very good thing because it creates a simple way to expand into the EU.
I hope you can take some minutes to stop by the Shopify app store, and check out EAS EU Compliance. What you need to do : 1. register with EAS; 2.download the application; 3. integrate it and 4. start using it.
EAS have no monthly payment and transaction based! Pretty ideal for small business!
If you still have further question, book a meeting here (link: https://meetings.hubspot.com/robert662/30-min-demo ) or check out EAS EU VAT automation (link: https://apps.shopify.com/eas-eu-compliance ) at Shopify App store.
I hope this is helpful for you!