Tax setting for IOSS is disabled

[rapidturtle]

Hello,

My business is registered in EU (France) and I'd like to register IOSS number on shopify tax setting.

However, on Shopify tax setting, the option to register for IOSS is blocked due to the following reason.

"This is turned off because you're located or collecting VAT in the EU"

I guess it's because my business is located in the EU.

However, my products are sent from outside EU to EU countries so I should be eligible for IOSS scheme.

I'm trying to do all this to use DDP so that I pay the customs and import VAT and my customers don't have to pay anything before receiving the product.

Your advice and help are greatly appreciated.

Thanks!

[Rostislav]

HI  Rapidturtle, 

Shopify somehow thinks that IOSS is not to be used by EU based companies.

There are 2 ways to solve the problem depending on how you want to ship orders over 150 EUR from abroad , your products scope and your Shopify plan 

A. If you want to use IOSS only and ship orders over 150 EUR as DDP .

This workaround requires a bit of work on your side. 

1. Disconnect Shopify payments .

2. Change shop address to one of the French overseas territories where EUR is used as the payment currency (Guadeloupe, Martinique, Saint-Martin, Saint-Barthélemy , Mayotte and Réunion etc.) 

3. Set up IOSS as ususal,

4.Change address back to Faance

5 . Reconnect  Shopify payments

This will allow you to use IOSS with EU registration .Orders over 150 EUR will be calculated as DDU (no VAT added) 

B. If you want to use IOSS for orders below 150 EUR and DDP for orders over 150 EUR 

Setting of the store will depend on your plan and scope of your products (you need to check/know if customs duties are collected for them)

I can advise you further for settings in this situation if you provide the following to my mail infor@easproject.com (for Rostislav) :

1. Your Shopify plan

2. Description of goods 

3. Assessment of medium normal value of orders coming over 150 EUR

Yours 

Rostislav