Until Crossborder it makes clear how their advisors came to the conclusion that VAT shouldn’t be collected on shipping, I don’t see there being much debate.
It may be the case that as EU states transition into the new rules, certain customs declarations may not result in the shipping cost part of an IOSS consignment being transmitted to the central Suveillance system that collates VAT due. However, if the consignment is declared using the H7 dataset around which the IOSS was designed, it is very clear that both the goods value and shipping cost value will be transmitted and the VAT will be due in both. That’s clear from the document that Dbaca selectively quoted to assert that VAT wasn’t due on shipping.
If Crossborderit can guarantee that no IOSS consignment - in any of the 27 member states - will be declared using the H7 data set, then maybe there’s a case to say that VAT doesn’t need to be collected on shipping. But how can they guarantee that, especially going forward as new systems are put in place?
And there the fact that it is the clear, obvious, explicit intention that VAT is due on both goods and shipping. Even the Swedish tax agency, though which Crossborderit are registered as an Intermediary, confirmed to me that VAT is due on goods and shipping for IOSS purposes.
Crossborderit doesn’t want to keep discussing this, but if they’re going to assert something against all available evidence, they need to tell their clients why.
@Morning Thank you for this information about VAT being charged on shipping charges as well. We did not know that.
Currently in the shopify tax settings there is an option to turn on automatic VAT collecting based on the buyers address. Do you know if this is implemented into their software?
We are still in limbo as far this whole thing goes and we no longer ship to the EU at all. We would like to be able to ship to the EU like we have for many years, but due to the opacity and vagueness of the whole transition, we’ve switched to a system where we use a distributor based in the UK.
Dan here from Vevol Media - Shopify Experts, I’ll explain what we did for one of our clients based in the UK and how we helped them regarding the price displaying issue.
We’ve added a dropdown on their Home Page that allows the visitors to switch between seeing the prices with VAT and without VAT. See attached file.
This has to be done by editing your theme’s code. Feel free to get in touch with us if you need help on this.
Hi @Rosemary_MYndM , depends on a few factors, like the apps you are useing, theme, theme’s code. Happy to give you a quote and discuss more. Feel free to email me at: hello@vevolmedia .com Thanks!
Hi Damon, please can you provide an update on this. Do you have any better idea of when the public app will be approved?
You mention you stopped sending out the private link when Shopify expedited the approval - that created a single point of failure that assumed them actually meeting that timescale. Shopify are well known for taking a long time to approve apps by requiring amends to be made to meet their satisfaction. In the meantime, your business seems to not be responding to requests for the private link - I emailed 2 weeks ago, no reply. I also emailed you 10 days ago, no reply.
What’s the latest plan, please? We’ve had an issue now with Swedish customers receiving a letter that they might have to pay VAT pending further investigation. That is correct, because we haven’t submitted the data, because we were waiting to be given access to the app.
Yes we have had a challenge with the Public app.. We are working on it. Shopify is saying the end of the month. We will have another version of the private app this week that can be installed in the short term.
Step 3: When completed both applications/ registrations, you will receive an invoice from Crossborderit with 3 months pre-payment for the IM number (IOSS number) application to the Swedish Tax Agency.
Step 4: When 3 months subscription payment has been paid, Crossborderit will apply for the IM number at the Swedish Tax Agency, where you are registered.( please allow 3-5 business days)
I’ve attached here a file that can help you sign up easily.
We will manage the rest from compliance and reporting.
You will soon receive more information about our payment solutions and onboarding form for payment options.
It is great to see you guys have created an app for Shopify.
Please can you elaborate on “( + payment processing fees – depending on payment method)”?
We use Shopify’s Payment gateway + Paypal to collect payment, which if we have understood correctly we would need to pass the relevant VAT amount to you. Are you going to charge us for sending you the VAT payment??? Sorry its been a long day, but we can’t see how we can afford this if you are going to charge a monthly fee + per shipment fee + a fee on the money we pass to you (which you ultimately pass to the authorities).
We are working on several payment systems, One is direct credit card, one uses PayPal Brain Tree. These are still in the making. We are also working to get Shopify to accept VAT payments directly.
At the moment we invoice customers VAT and Fees outside of the APP however the payment will be displayed there and you can collect it. We just need to bill you weekly after the fact. This is the last piece of automation we are working on.
I hope that answered your question.
Thank you for your swift response. No not really. As far as I can see we will be paying for:
the app (to you)
shipment (to you)
stripe fees (to shopify) or paypal fees (to paypal)
payment fees (to you) for the VAT part of the payment
Can you please confirm if we have understood correctly? and if yes for point 4) is there anyway we can negate these fees ie pay via bank transfer? or which one has the least percentage charge and what charge is it?
@Pauline_Millwar I have issues with the payment system too. I signed up as soon as I could to CBIT, but the fees are beginning to stack up. Everything seems to be on separate invoices. The 3 monthly fee was on one invoice, the €1 fee per transaction is on another invoice and then the VAT invoice is on yet again another one. Now when a UK bank charges £15 to make an international transfer, that’s £45 to start, just on those 3 invoices. Not to mention that the €1 fee per transaction invoices and VAT invoices are payable weekly, the bank transfer fees make this unviable going forward unless a new payment system is introduced.
If you use transferwise or now wise you pay peanuts.
Wise is brilliant, we use them in our business for many years, and we can transfer to any country in any currency wihin minutes and not to mentione it is like 1£ not 45£,
Just if you want to save money:D
We also are in want of confirmation that the functionality might be carried out, in order that VAT is best appliedhere for EU orders under one hundred twenty$ and there might be an smooth way to extract the income and fee information for these orders.
