Regarding VAT on shipping, yes in the UK it is a VATable service. Even prior to Brexit, shipping charges to EU customers were inclusive of VAT. It is also mentioned in the HMRC VAT guidelines. So Shopify and Amazon are correct to apply the VAT to the shipping charges. That’s how our pricing is set up in our shop.
So if using IOSS, then shipping to EU customers would have to include VAT.
So far Crossborder it upload file for two line is a disaster, what is funny, that I have downloaded their sample file and says the source country GB is invalid, so how come I used the sample file and GB as a source not valid.
I might have to look at others if this is so bad.
Had the exact same problem as above. Sample template doesn’t even work and the support team don’t reply to any emails.
Funny how they’re so active on this forum, yet don’t actually help anyone who signs up…
Yes maybe I look elsewhere
e.g.
To where are we supposed to pay the vat on the shipping if it’s not via IOSS? ..And you are confident that that if we don’t add the shipping value or vat to your upload file it will not result in the customer receiving a payment request notice?
There are some comments here about the sample upload file not working. I didn’t get that far yet because I’m scared to upload the wrong information.
Is there a section on your website where it explains the requirements for each column in the CSV? There’s too much unknown here. For example… In the sample csv some columns have the value “0” or are blank, and I don’t understand what the columns are actually relating to. For the transaction date, is that the date of the sale or the date of the shipping label purchase, as that is also a transaction?
Thanks
@Dbaca Thanks for your reply we have emailed that email address over a week ago without reply, sadly.
VAT is chargeable on shipping to the EU as you mention. Problem is Royal Mail does not populate the shipping cost on Click and Drop, just the product cost. Royal Mail also does not allow you to change price from £ to € for the CN22. It is these two things which will cause a mismatch with the data submitted by Click and Drop and the data sent to Crossborderit.
However, I have 3 shipments leaving for Europe today with IOSS, so will update on here how it goes!
Our first IOSS experience:
Can someone please provide a valid solution to this? One that doesn’t create an absolute nightmare experience for the customer or the business.
Thanks
Contact support@crossborderit.com
Also keep in mind we will have the Shopify app very shortly. This will get rid of manual uploads.
Emailed multiple times over a few weeks. Not a single response.
Email me directly and I will make sure that support helps. We are working very hard currently.
My understanding that IOSS is just a reporting facility the same we had to do with the EU sales reports online to HMRC.
Just because we can’t upload anything the parcels should still arrive with the incoterms, we sent them with.
We used the IOSS number so far for two weeks and all parcels arrived with no extra cost.
But many people maybe not aware of some fields on the couriers how to fill out the forms, because it can be difficult and
Maybe they don’t it correctly.
You can change the value on the click and drop royal mail, there are 3 tick boxes under each order, and you can over write them and save them if you like.
Contact me directly damon@crossborderit.com We have been helping hundreds of customers so I am not sure why you would not get a response.
I emailed today, didn’t get a reply
If you emailed me I am working on my mails. I am in California so I wake up and go through the list. If you sent a note to support that is in Sweden so we have some time zone challenges. We have 24//7 customer services but I would like to handle this myself.
@Det742021 Damon has recently mentioned that we need to do the IOSS daily because it has something to do with the clearance. That’s all I remember, would appreciate if he could now give a better explanation than I have.
@Dbaca you’ve mentioned to email support with these questions but if you could answer stuff publicly it would really help because it seems multiple people have the same issues / confusion (and there are also many people saying there are support delays). Surely a public reply will massively reduce your workload too.
@AnyDevil Totally agree. Our shipments are getting delivered though so IOSS number is working as it should, we haven’t uploaded anything yet as we still await answers. We have full records and we are ready to go with the uploads as soon as we get clarification on certain points, same as many others here.
I am still confused by the daily upload thing as VAT returns should only be filed monthly so why daily uploads needed?
The IOSS rules are different than the VAT rules and does not require you to collect VAT on shipping. I have a Swedish document that states that but I am going to translate it and get it on the forum.
The most common error people are having with uploading is the date format. The tax authority wants it to be in Year, Month, Day. This has caused a lot of confusion as this is not the standard in every country.
We have directions for the CSV file and our FAQs should be uploading all the questions.
Definitions and main customs concepts 1.3.1. Intrinsic value
The new VAT rules for e-commerce have introduced special schemes for the calculation of the import VAT for goods in consignments not exceeding 150€. The applied concept followed the threshold of the customs duty exemption for consignments of negligible value under the Duty Relief Regulation (Regulation (EC) No 1186/2009 – ‘DRR’). Besides, as of July 2021, the Member States will need to integrate a validation mechanism in the declaration processing system (National Import Systems) to check whether the customs declaration for release for free circulation of certain low value consignments (the H7 dataset in UCC-DA Annex B) is legitimately applied. Considering all the above, the customs legislation introduced a legally binding definition for this term that safeguards the harmonised implementation throughout the EU and builds on the approach that has been used for the customs duty exemption threshold. This definition applies for the implementation of the 150€ threshold both for customs and VAT purposes, regardless of the VAT scheme used. Article 1(48) of the UCC-DA provides that “intrinsic value means:
(a) for commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice, and any other taxes and charges as ascertainable by the customs authorities from any relevant document(s);
(b) for goods of a non-commercial nature: the price which would have been paid for the goods themselves if they were sold for export to the customs territory of the Union;
I hope this clarifies that VAT should not be calculated on Shipping.
Definitions and main customs concepts 1.3.1. Intrinsic value
The new VAT rules for e-commerce have introduced special schemes for the calculation of the import VAT for goods in consignments not exceeding 150€. The applied concept followed the threshold of the customs duty exemption for consignments of negligible value under the Duty Relief Regulation (Regulation (EC) No 1186/2009 – ‘DRR’). Besides, as of July 2021, the Member States will need to integrate a validation mechanism in the declaration processing system (National Import Systems) to check whether the customs declaration for release for free circulation of certain low value consignments (the H7 dataset in UCC-DA Annex B) is legitimately applied. Considering all the above, the customs legislation introduced a legally binding definition for this term that safeguards the harmonised implementation throughout the EU and builds on the approach that has been used for the customs duty exemption threshold. This definition applies for the implementation of the 150€ threshold both for customs and VAT purposes, regardless of the VAT scheme used. Article 1(48) of the UCC-DA provides that “intrinsic value means:
(a) for commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice, and any other taxes and charges as ascertainable by the customs authorities from any relevant document(s);
(b) for goods of a non-commercial nature: the price which would have been paid for the goods themselves if they were sold for export to the customs territory of the Union;