How do I obtain an IOSS number? US Seller here shipping to EU.

[RCG]

We are a US seller that needs to obtain an IOSS number so we can collect VAT for our international sales to the EU. Doing some looking around online and we find several sites that are hand-holders through the process and they want to be paid to walk us through it. We just simply need the site address where we register to get the IOSS number. We can't find the site. please help.

[aradanistudios]

We are a US based seller too. From what I can gather, you have to work with a EU based intermediary to actually file the VAT payments. I have been looking into this as well, and it seems impossible for small companies to be able to afford this.

Paul

[RCG]

The only site I am seeing that will help with this is ship24.com. There may be others but this was the only one I found that was ready to go and pretty easy to understand. As far as I can tell, they will set things up with the EU after an initial business filing with them. They charge about $60 per month, plus 1% of the declared package value. They want us to forward all the VAT we collect at checkout to them once per week via bank transfer (3% fee for credit/debit card). They will then dispurse the funds accordingly to the tax agencies in each country. We're in the process of setting up an account with them now. Unfortunately Shopify is being opaque on this whole thing and we can't find any other documentation or instruction/tutorials for small businesses like ourselves.

If anyone has a better site or a better solution please ping us here with the results. Otherwise it looks like many small businesses will be cut out and just not ship to the EU anymore. 

[aradanistudios]

So we can continue shipping to the EU via Delivered Duty Unpaid. In the
past, buyers didn't have to pay for customs if the total value was less
than 22 euro. Now they have to pay VAT regardless.

So the main difference is that now everyone will have to pay customs to
import instead of only those whose orders are above 22 euro. Not ideal, but
seems much more straightforward for smaller companies.

[RCG]

Yes but the VAT fees, at least in our experience, are higher now if you ship the old way. They want everybody on the new system and they're gonna make you pay if you don't comply.

Etsy takes care of all these fees for you if you sell and ship through them. Unfortunately not so with Shopify. We are still waiting and hoping that Shopify will work out a deal the same as Etsy. Otherwise we are hiring 3rd party apps and paying a minimum of $600/year + 1% of value fees. 

Shopify please build this in to your system for us.

[freedivebird]

It actually is amazing that this is not integrated deep into Shopify. Come on Shopify, if you want to earn the monthly subscription and the transaction fees I think it would be reasonable for you to provide some service too instead of requiring an app for everything!

[Dbaca]

You can download our app and sight up.. you will get an IOSS in a couple of days.

[TeemuEAS]

Shopify would have to become liable for VAT if they took the role of the Intermediary. That is not something that I see as happening. Like I mentioned, there are solutions out there without extensive costs or monthly fees. I might be biased but we are good, at least since we are getting constantly increasing number of merchants from all of the other 'service' providers. 

https://apps.shopify.com/eas-eu-compliance

[TeemuEAS]

The difference between Etsy and Shopify is that Shopify is not considered to be a marketplace. Becoming a marketplace (or "electronic Interface" as they are referred to in regulation) would push liabilities such as the mentioned to Shopify. If I were Shopify, I would avoid that at all cost. 

Solution is not difficult, however: https://apps.shopify.com/eas-eu-compliance

[TeemuEAS]

We do not recommend shipping DDU, ever. It is simply terrible customer experience and results in extensive returns and customer churn. It is the most expensive solution for you. At minimum get a DDP solution from your logistics partner. 

[Annieli]

Hey, RCG

Now you are able to have such apps in Shopify app store to solve IOSS related issues when you are sending the goods from US to EU end customer. EAS has created a tool just for your needs. We register you for IOSS, calculate taxes and create IOSS reports and file them.

Most importantly, EAS only charged per transaction, which means you only pay what you sell, and no monthly payment, it’s very ideal for the small business.

Book a meeting with us 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.

Best regards.

Annie

[Dbaca]

If you have not looked at Crossborderit we have a good Shopify app that can make this clear and simple for you. We have some updates to our service.

Crossborderit charges €1 per shipment and $24 per month for access to our platform. ( + payment processing fees – depending on payment method)

To get you started with Crossborderit IOSS services, please follow the steps below:

Step 1: Add the Crossborderit app on Shopify APP store: IOSS and Landed Cost Service | Shopify App Store

Step 2: Register/ complete the registration for IOSS service on our site; https://cbit.crossborderit.com/merchant-onboarding, 

Step 3: When completed both applications/ registrations, you will receive an invoice from Crossborderit with 3 months pre-payment for the IM number (IOSS number) application to the Swedish Tax Agency.

Step 4: When 3 months subscription payment has been paid, Crossborderit will apply for the IM number at the Swedish Tax Agency, where you are registered.( please allow 3-5 business days)

I’ve attached here a file that can help you sign up easily.

We will manage the rest from compliance and  reporting.

You will soon receive more information about our payment solutions and onboarding form for payment options.

[TeemuEAS]

The IOSS regulation does not, unfortunately, allow for non-EU companies to register for the new special schemes like IOSS. So there is not walk-through for it, the Intermediary must handle the whole process. The registration itself takes minutes, at least in the digitally more advanced countries which we recommend. 

The role of the Intermediary is a precarious one, they are jointly and separately liable for the reporting and VAT. And that is why the pricing for the service is quite imaginative. The IOSS number is tied to the Intermediary, not the seller, meaning once you want to change the service provider you have to re-register. 

We automate the calculation and report generation with our Shopify app. Because of the applications, we have much more knowledge of what is going on and we know the quality of data is top. Which is why we are registering companies for free. Our fee is based on usage, if you don't sell cross-border there is simply no charges. 

We wanted to make everything easy and affordable for merchants, regardless of how or where they are selling from. Which is exactly what we did. Oh, and we also handle UK, not just EU. 

App here: https://apps.shopify.com/eas-eu-compliance

More here: www.easproject.com 

If you are already convinced, just register to us at www.easproject.com/reg 

[Dbaca]

We also are an intermediary. With many customers on Shopify.

https://apps.shopify.com/duty-calculator

Find out more at
https://www.crossborderit.com/ioss