All things Shopify and commerce
On the 1st July the EU introduces a new tax regime for UK e-commerce distance sellers selling into the EU. For sales under Euro 150, e-commerce sellers can opt to charge destination country VAT rates to speed up delivery. For sales above Euro 150, sales will continue to be VAT free with the customer having to pay VAT / charges when the package arrives in the destination country. Will Shopify be implementing this threshold so that VAT is included/excluded automatically, or will sellers have to process refunds above Euro 150 or use an external app? Any help on this would be appreciated..
My read of the new tax rule is that it applies to ALL non-EU sellers, not just UK. I have the same question as Max1957 and am somewhat distressed to see that there has been no response to his/her question in a week. Here is the link to the IOSS page
Further thoughts and questions: The new EU VAT regime (July 1, 2021) will affect all B2C sellers -- both EU and non-EU -- who sell cross-border. And as Max1957, this only apply to sales less than EUR 150. I can see that Shopify will allow one to set up a specific tax rate for each country, but I don't see a method to add VAT to only those orders from EU country X (at that country's rate) that fall below EUR 150. It looks like all sales amounts will have tax added or no sales will have tax added. Can anyone address this? Also, "Any businesses selling less than €10,000 per annum cross-border on B2C goods and services will be exempt from the obligation to complete an OSS return. Instead, they will be able to charge their domestic VAT rate and report the sales below this threshold in their regular domestic VAT return." Source: https://www.avalara.com/vatlive/en/vat-news/eu-2021-one-stop-shop-vat-return-for-e-commerce.html. Finally (for now), please share the names of any experts or companies with whom you have had a positive experience in r=deal with VAT issues.
Hi @MarshallF,
Tiia here from the Better Reports support team.
I believe our app Better Reports may be able to help. While we are not able to manage how taxes are applied to an order, we can create sales reports that list our standard sales metrics including gross sales, net sales, and total sales by country (either shipping or billing country). We can also create reports that show sales grouped by "Is in the EU" or "Is not in the EU".
Additionally, we can create reports that list all taxes that have been charged by order. These reports can be set up to show a summary by month or quarter and can also be scheduled to send your email or Google Drive at set frequencies (i.e. weekly/monthly/quarterly).
In addition to building custom reports to meet your specific needs, you'll also get access to 60+ built-in reports that cover many common use cases for merchants and all of the reports can be directly exported to Excel, csv, or pdf.
I encourage you to install Better Reports and start your free 14-day trial, and I'll be happy to set this up for you!
I appreciate all the discussion and helpful suggestions posted on this board, and I notice that most of you seem to be in the UK. I'm wondering if there are any participants who sell from the US, as do I? Our issues and solutions are slightly different (the commercial intermediaries suggested seem to only be able to work with UK based sellers) and I'm interested in learning what others (US) have discovered. Also, I'm a very small company and I have few sales to the EU and even fewer of less than €185. Anyone else dealing with a similar situation?
What if we are not vat registered as we don’t earn enough to be so? I am so confused.
Because of merchants not having automations, calculations and reports EAS is having new customers constantly using the mentioned IOSS registration company simultaneously.
As a UK Shopify merchant, I must say that we are very happy with EAS Project. Their app works seamlessly in Shopify and at the end of each month, there is a detailed report of the sales for that month. Registration for IOSS went seamlessly with them and we have already seen a quiet return of the EU customers we had before so we are hopeful that the upward trend of returning EU customers will continue.
We do not have to download reports or anything to EAS - it is all done through the app and they help with the installation and integration.
We recommend them wholeheartedly.
Why would I want DDU and get customers to face fees at point of entry and slowed goods? IOSS is designed to get around this? I am all sorted on IOSS now as its been a while but thx for the input
We have gone live with our IOSS app https://apps.shopify.com/duty-calculator
You can learn more on our product page. https://www.crossborderit.com/shopify
I too have been asked to look into this for our ecommerce store.
I have all the same questions as Max & Marshall.
Would there happen to be an help on this?
We are also in need of confirmation that the functionality will be implemented, so that VAT is only applied for EU orders under £135 and there will be an easy way to extract the sales and payment data for these orders. Many thanks.
It looks like the .gov website has been updated -
https://www.gov.uk/government/publications/eu-e-commerce-package/eu-vat-e-commerce-package
Interestingly it mentions a UK portal, but it might not be ready by the 1st July
“A business not established in the EU or Northern Ireland wishing to register for IOSS will be able to do so in any EU member state or in the UK.“
Anyone knows why shopify is still charging over the threshold? We followed all settings correctly, set up one stop shop.
Fully registered, all set up, but we keep charging customers over the threshold, so I don't know what to do, shopify support was mainly useless sent me few manuals
we read many times, not very helpful. Anyone have the same issues?
@Det742021 I have set my companies shipping rates to EU based on order value of a max of £130 - if an EU customer tries to order more it will not let them order.
**VERY IMPORTANT** If you do the above you have to change 2 error messages that Shopify displays (under languages) else Shopify will give the messages that you do not ship to the country they are trying to order from!
Hope this helps as it's working for us.
I need a solution that works properly for orders below and above the 150 Euro threshold, so I am going to wait for Shopify to fix things before I make what could be irreversible changes..
Just seen this morning that UPS are now requiring an IOSS number for european shipments, unless the value is over 150 euro or the shipment isn't going to an end consumer.
So much for IOSS registration being optional.....
@Dbaca When uploading the file, does the SalesAmount include the shipping cost? Also should the VatAmount be included in that figure too? It's hard to figure out from the example you provided in the uploading instructions. I can't see how the VatAmount in the example can be 33 when the vat rate for Sweden is 25%. 25% of 123 is 30.75.
@Dbaca I have sent you a private message for my ioss number but haven't heard back from you, not sure whom I can get in touch with for this issue? It has been more than a week we applied for the iOSS but so far not received anything.
@Dbaca I have now signed up with you guys and have my IOSS number. But question for you, and I ask here, as I suspect others may also want to know. We have two webs shops in Shopify. But both owned by one limited company, so one UK VAT account and one company number. So can I use the IOSS number in both websites? Your online application form only allows for me to add the one web shop.
Thanks!
Did you receive their reply? Are you able to start shipping with the code now? I tried to contact them both on this post and on email regarding how to pay VAT and their service charge, but so far received no reply.
@frasers Nope! Absolutely nothing at all. I emailed Monday and as yet zero response. I am shipping currently using the number they supplied, but tentatively, as I want to see if goods make it through or not.
But they were so active on here promoting themselves, then literally they vanished. I have the exact same issues as you. Nowhere to pay, and no response. Hence I am looking now at Taxamo. But I cannot see if this will link to Shopify or if I am just jumping out of the frying pan and into the fire!!
each one has different conditions, we ship mostly from US and China by many different carriers, different lines. It's not possible to use your service.
We emailed to you here privately and emailed to support@crossborderit.com, info@crossborderit.com
No one reply. Really annoying that we get the IOSS code but no one can let us know how to use!
In exactly the same position. Have received the IOSS code but no instructions from crossborderit, despite numerous emails....
You've already posted this many times, this is becoming spam.
@SamosEcommerce How do you access your shipping? I use Royal Mail Click and Drop for all my parcels at the moment as it's a solution that totally suits. How would you ship EU parcels for me? Thanks 🙂
No, you're not alone. I tried a while back and it wasn't possible to get across that this has absolutely nothing to do with Brexit 1st January changes. Like with many of the feature releases, the US is the focus.
I can't even get as far as you have, because I have direct VAT registrations in two EU countries (which EU VAT law still requires for each country in which a non-EU based seller is using Amazon fulfilment warehouses).
The Shopify system won't let me use IOSS because "If you're located in the EU or you collect VAT on sales within the EU, then collecting VAT when you ship to customers in the EU from outside of the EU isn't supported."
https://help.shopify.com/en/manual/taxes/eu/eu-tax-reference#one-stop-shop-schemes
So, to get around this to be able to ship to EU-based customers, I will have to remove my EU VAT numbers and go via IOSS. But we're not allowed to pay those countries VAT via IOSS, because we have a direct VAT registration with them, meaning that even though we're a UK business shipping from the UK, VAT on our Shopify sales to customers in those countries must be reported and paid in the normal pre-IOSS manner.
There must be so many other UK-based Amazon sellers in this position. Can anyone advise what they're doing here, please?
I got rejected by Ireland for IOSS, but you say that you are now registering for one stop shop - can you advise how you are going to do this.
Did you need to change any settings to get it to work, or it's a matter of them having put through a fix?
Also, is your pricing now different depending on the country?
I'm yet to switch on IOSS but I'd really like the price to be the same no matter the country (i.e. whether the VAT rate is 20% or 25%, it still charges the same, other than currency exchange difference). With the direct VAT registration option, that's how the pricing is handled by Shopify.
I have added our IOSS into shopify Tax settings, our website didn't work correctly, because I followed their manual and added the IOSS within the EU Section.
Go to
-Settings
-- Tax
--- Choose EU from the list, next the the EU you can click on manage
----Ignore shipping within EU, you have to chose the section SHIPPING TO THE EU
-----Add you IOSS number and the country you received this registration from. This is only valid for the IOSS number.
Then save and that is it.
If you want to collect the VAT from all Eu AND you also want to collect above the 150£ threshold (collect VAT above threshold is optional), you can also do this, but then you have to fill out the IOSS details inside the SHIPPING WITHIN THE EU section.
This is what I have done wrongly. So our website was charging everyone VAT.
Shopify programmed correctly all the VAT rates for each country, it works.
Then we have to report these transactions with Crossborder IT. I will start doing this tomorrow as they had technical difficulties and just received their manual.
you can email me if you need help, or even call us, if you like, pm me
I think I understand. I will contact CrossborderIT to find out how much it would cost.
Or is there a CrossborderIT rep in this chat who could speak to me briefly?
Thank you for the extra information. May I ask what you have put in place to deal with orders over the IOSS threshold?
Thank you for explaining.
I am still a very new small business looking to launch next month. I have decided to keep it simple for now and use royal mail for my UK, EU and US orders.
I am so overwhelmed and confused as to whether I should sign up for IOSS now, so I can provide a better customer service experience for my customers Or wait till I've grown more as a business.
We recently spoke with Zopi developers @Zopi about how dropshipping businesses can enha...
By JasonH Oct 23, 2024A big shout out to all of the merchants who participated in our AMA with 2H Media: Holi...
By Jacqui Oct 21, 2024We want to take a moment to celebrate the incredible ways you all engage with the Shopi...
By JasonH Oct 15, 2024