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
Hi
You will need an intermediary company, they are mostly in the Eu. Within the UK KMPG and Delloitte offering services, but they charge massive amounts..
We registered here with CrossborderIT, we received our IOSS number within a day so we can continue trading.
They are based in Sweden.
I attached where to add the IOSS number, so Shopify then correctly will deal with the VAT.
It is under
-Settings
– Tax
— EU—Manage
-----Shipping to the EU section!
Insert you IOSS number here and also the country where you are registered with your IOSS number with
Ie us for example Sweden
Then SAVE and it should work
There is also a company called Samos here, who were very helpful, they also do shipping for you if you need them.
Registering with each country, or with you is really difficult, we got rejected by Ireland, they don’t give you IOSS number for example, only if you offer services not goods.
If you go back few pages on this forum, there is a support guy and his email.
You can also book a demo on their page.
They charge 19.99 euro per month plus some smaller extra fees, I guess we will have to increase the carriage, to recover the cost on these at our end
Over the threshold you cant use IOSS, we ship worldwide every day, so orders over the threshold left us and we sent them with Fedex.
Fedex then will collect the VAT and duties in the related country.
The problem now that most customers are not aware that they may have to pay extra duties, so it can be a shock..
We use the commodity codes/tariff numbers for each line
We get special rates from Fedex. Within EU we use DPD, Royal mail or DHL, sometimes Parcelforce.
We now started emailing customers before we send the goods out.
Customers will not get the goods until they paid the VAT and duties, we use DAP incoterms.
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.
Maybe just use Royal mail, that is simple and see what happens.
Many people are not aware of the rules, or Brexit and it is a shock when they get the fees…
We lost many customers.
Thanks very much for this! I removed my direct EU VAT numbers and now Shopify allows me to use its IOSS functionality. I think that’s forcing businesses to break the law if they want to get EU orders, but hey.
Interestingly, I had a chat with the Royal Mail Click and Drop team and they said that, despite Shopify insisting it is not a marketplace or a facilitator, they know that it definitely does have an IOSS number, that we are all supposed to be using.
We will also be using Crossborderit. You mentioned you will be looking at doing your first upload soon - FYI my understanding from them is that with the manual uploads we need to do them daily, it’s something to do with the customs clearance.
Re Crossfitborder IT,
Since yesterday I had no instructions, and I don’t think they replied to anyone here, and not sure if anything worked..
So I would not be able to upload my file, as had no instructions until lastnight.
I think crossborderit took about a week to provide the IOSS number.
Over the threshold is rare for us, it’s probably a business order. We will probably pre-pay the VAT using the option provided by DHL, or the Royal Mail option of their DDP service is out and supports that country.
You don’t need to provide an IOSS number, Royal Mail won’t care, but you’ll regret it when the customer has to pay an e.g. 15-30 Euro import fee.
It sounds like Royal Mail’s DDP service would be better for you, but Royal Mail hasn’t released it yet and all mail is being charged packet rates as large letter isn’t supported yet. If you are only just launching I would say it’s better to not stress about it and just focus on your domestic market for a few months and let this drama unfold.
I’ve had no instructions either, I saw them posting here that it’s really rather simple. I think we are supposed to figure it out for ourselves by looking at their website. I am figuring it out tonight, looks like a lot of manual CSV work.
You need an intermediary to sign up for IOSS. We have a Shopify app being tested with customers now. But we can handle under €150 and also have a platform for above €150 outside of the IOSS. This wll be in version 3 of our Shopify app. www. IOSS
