I see the Shopify IOSS setup is including the shipping fees in the EU VAT calculation (the higher the shipping fee, the more VAT you pay). Does anyone know if that’s correct?
You only need to register for one country and the intermediary handles all others.
Your e-mail may be wrong in the system
Yes, shipping is vatable, as you are selling a service.
Post and shipping, parking is vat free in the uk, as soon as you sell these, it is vatable by law, and also vatable in the EU.
Just like before Brexit,
Ok I have to check this out then
I am not sure how Shopify is handing this but IOSS demands VAT just on the product.
One change for IOSS though is that you only need to charge duties on the product. This is a positive change.
Uploading will be gone once the APP is in production.
We do offer another service outside of the IOSS for above €150.
Crossborderit has a Duties and tax service above €150 globally as well to get rid of this float that many carriers use.
Send me a mail at info@crossborderit.com and we can arrange a chat.
@Dbaca Can you please advise when uploading to you guys do we put the Gross price our customer has paid which includes the applicable VAT rate or the NET price (excluding VAT)?
I ask as I have been stung before when we were told to put the Gross total of the order then it got presented to Customs by the courier and they then added VAT on again to the Gross price thus two lots of VAT added to the order.
The figure you enter in the ‘sales amount’ column excludes VAT.
Crossborderit are requesting for amounts to be in EURO but we charge in POUNDS. Not sure how this is accounted for?
Email support@crossborderit.com to make sure this is done correctly.
Thank you,
Damon
It is up to the customer to perform the conversion of currency before they report it to us in the upload. We will relay that it is the accurate conversion for that date.
is there any possibility that our delivery can be rejected or more tax added (resulting in fees for the customer) if the customs looks at the Euro data we gave you and the GBP data we sold the item with, and they decide they don’t match?
Because Royal Mail is submitting the electronic data in GBP and you are submitting in EUR, so there’s going to be a discrepancy.
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This is a question we do not know yet but if you convert on the day of the shipment we will defend the amount and believe it will be fine.
Some things are just ambiguous at the moment.
Hi Damon, I’m trying to complete the CSV but I’m struggling. Earlier I asked a question about vat on the shipping amount and you mentioned:
“I am not sure how Shopify is handing this but IOSS demands VAT just on the product”
Indeed, on the Royal Mail labels it does NOT display mention the shipping amount on the shipping label (perhaps they do upload it into the electronic information, I don’t know).
However, on Shopify and on Amazon, they ARE adding VAT on the postal amount, so it would suggest it does need to be submitted and someone else advised me in this thread that vat is chargeable on postal costs. So there areconflicting realities here. Can you help demystify this?
If we only provide the product cost to IOSS, is there, therefore, a very real chance that our customers will be charged import fees due to the missing shipping VAT? Because surely this VAT is due to the recipient country and not the UK?
These other platforms may be doing it but you do not have to. They probably are just not doing it right at the moment. Contact support@crossborderit.com for help on the CSV file. The Shopify app will be out very soon.
Thank you,
Damon
Thanks Det742021 (regarding how the shipping amount is VATable). Would appreciate your input on the response I’ve received from Damon from CrossBorderIT to this post, because they are advising that VAT on shipping is not included in the IOSS submissions and that the likes of Shopify/Amazon are probably not doing it correctly at the moment. All I care about is that I’m doing this correctly and therefore my customers won’t get penalised, but there is no clear consensus on what is correct and what isn’t! To my thinking, if the shipping is indeed VATable for EU sales and it’s not being included for IOSS, then the shipping VAT is floating around without a recipient and it’s going to make financial accounts incorrect as a result. If it isn’t VATable, then great, but it’d be a huge mess-up for the likes of Shopify and Amazon to have got this wrong.
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