how long it will take in general to receive the code? I applied on 27th but it still says “We have recieved your request for an IOSS number and are working to get it ready for you as soon as possible. You will be notified when it’s available.”
Topic summary
UK and non-EU e-commerce sellers face challenges implementing the EU’s new IOSS (Import One-Stop Shop) tax regime, effective July 1, 2021. The system requires charging destination country VAT rates on sales under €150, while sales above this threshold remain VAT-free until delivery.
Key Technical Issues:
- Shopify’s native functionality initially lacked proper €150 threshold implementation
- VAT must be applied only to orders under €150, but early implementations charged VAT on all orders or none
- Configuration requires adding IOSS number under Settings > Tax > EU > “Shipping to the EU” section (not within EU section)
- Debate exists whether shipping costs should include VAT in IOSS submissions
Registration Challenges:
- UK sellers cannot register directly with EU tax authorities due to lack of mutual assistance agreement
- Must use EU-based intermediaries (CrossBorderIT, Taxamo, EasyProject mentioned)
- Ireland rejected some UK applications; Sweden appears more accessible
- Registration fees and per-transaction costs vary significantly
Intermediary Solutions:
- CrossBorderIT offers IOSS number provision and Shopify app integration
- Concerns raised about their support responsiveness and unclear documentation
- Daily/weekly reporting requirements create manual workload
- Payment processing fees and multiple invoices increase costs
Current Status:
- Shopify eventually released IOSS functionality (April 2021)
- Royal Mail exploring DDP (Delivered Duty Paid) alternatives
- Some sellers avoiding IOSS registration, letting customers pay import fees
- EasyProject/Avalara mentioned as working solutions with automatic threshold handling