And Shopify does not allow the application of VAT based on variant or “non-physical” attribute…
This is quite a nightmare.
I use a VAT app to get around this
Which one?
Hello Emilie,
We developed an application specifically for IOSS. Eurora also is the first EU IOSS intermediary.
If you are interested we are looking for some volunteers to test our Shopify APP for IOSS. This will help you to automate all your VAT reporting and calculation for correct VAT % so it will be fully automated with no excel upload or manual reporting. If you are interested please write to ioss@eurora.com and our team will give you further information.
Hello PEZ,
We developed an application specifically for IOSS. Eurora also is the first EU IOSS intermediary.
If you are interested we are looking for some volunteers to test our Shopify APP for IOSS. This will help you to automate all your VAT reporting and calculation for correct VAT % so it will be fully automated with no excel upload or manual reporting. If you are interested please write to ioss@eurora.com and our team will give you further information.
Crossborderit still has all of these options. We had some complaints early on about our billing. It was a bit complicated to be compliant. We now have very strong solutions and a very easy experience. I am happy to discuss as well if anyone has questions.
Hi Max1957,
I am sure you have had to educate yourself on the new regulation already and I hope you have managed to find a working solution. In case it is still current, just have a look at: https://apps.shopify.com/eas-eu-compliance
The single solution handles all EU VAT schemes, the 600k reduced rates, automates reporting and removes your stress. No-code onboarding and off selling you go. Without monthly fees.
Hope it helps!
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What if we are not vat registered as we don’t earn enough to be so? I am so confused.
I found this for you, hope it helps, you can just send the goods as DDU, your customer will pay the vat and duty when the get the goods,
Your clients sales would be zero rated exports, so would count towards UK VAT registration, but let us assume your client is still not liable to register for UK VAT as well under the £85k threshold.
IOSS is where the goods are not in the EU at time of sale (ie, UK to EU). Whereas One Stop Shop (OSS) mainly for where the goods are in the EU at time of sale.
IOSS is optional, in theory your client can continue to just sell as they are now and customer is liable for the duty/VAT, however, because your client sells via Etsy, Etsy is an Online Market Place (OMP), the OMP is liable for charging the VAT on sales where the seller is not VAT registered themselves, and the OMP is liable for declaring that VAT on their own IOSS VAT return.
So you may find your client lists a product on Etsy and Etsy will add VAT to that selling price so that the EU consumer buys goods with their local VAT charged…see the Etsy website
https://help.etsy.com/hc/en-gb/articles/360000337247-How-VAT-Is-Collecte…<>
“As of 1st July 2021, Etsy will automatically collect and remit VAT from EU buyers purchasing goods that will be imported into the EU where the physical goods are less than or equal to 150 EUR.”
So it may be your client has nothing to do other than revise their pricing model to make sure they remain competitive once you’ve factored in the French or Spanish VAT that Etsy will add to the selling price.
Goods over £135/€150 do not fall under IOSS, IOSS is only for under £135/€150, over that and its a zero rated export/customer liable for the VAT their end.
That sounds interesting if customers want to change transportation services but IOSS works regardless of carrier..good informative post
thx for this but sadly all too late to the party as I registered for IOSS with Avalara and use apps for the rest, still waiting on shopify to make reporting easier and more affordable on lower tiers…
Why would I want DDU and get customers to face fees at point of entry and slowed goods? IOSS is designed to get around this? I am all sorted on IOSS now as its been a while but thx for the input
Hi, I’m all sorted with IOSS via Avalara and use a sheet app in shopify
to create the return. Thanks for the info which may be of use to others
Because of merchants not having automations, calculations and reports EAS is having new customers constantly using the mentioned IOSS registration company simultaneously.
As a UK Shopify merchant, I must say that we are very happy with EAS Project. Their app works seamlessly in Shopify and at the end of each month, there is a detailed report of the sales for that month. Registration for IOSS went seamlessly with them and we have already seen a quiet return of the EU customers we had before so we are hopeful that the upward trend of returning EU customers will continue.
We do not have to download reports or anything to EAS - it is all done through the app and they help with the installation and integration.
We recommend them wholeheartedly.
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I’m sure everyone has already found a solution, but I want to say that I had to change several apps and now I use easproject app.
Interested to hear how it works. After my original post over 2 years ago, and the replies I gave up on implementing IOSS as it just seemed way too complex. I would be interested to hear how Shopify/Easproject handle the 150 Euro threshold - currently my website shows Euro prices without tax. How does that all change if the shopping basket is below or above 150??
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EAS works seamlessly with Shopify. They will do the integration themselves first time round. The €150 cut-off is implemented automatically and we have had no issues at all with customers except when the exchange rate £/€ went a bit high. But all good overall and excellent service with a detailed dashboard to generate reports for yourself, etc.
Celine
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As far as I understand, the change in the shopping cart will depend on the tax settings in the store and tax schemes (IOSS, OSS, etc.). But I immediately refused to dive into it, there are more important things to do, and I left the taxes to the professionals, especially since all the settings in the store were not made by me, but by them.
Its amazing you have addressed the vital changes in the EU’s tax regime for UK e-commerce distance sellers. Shopify is proactively updating its system to accommodate the new VAT regulations for sales below and above Euro 150, aiming to automate the VAT calculation and charge processes directly at the point of sale. This update is expected to facilitate faster delivery for sales under Euro 150 by allowing sellers to charge the destination country’s VAT rates, while for sales above Euro 150, VAT will not be charged on the platform, with customers settling VAT and any additional charges upon arrival in the destination country.
To ensure your store complies with these changes and to navigate this transition smoothly, we recommend staying tuned for official updates from Shopify and contacting our customer support for personalized assistance. They are well-equipped to guide you through this process and answer any queries you might have.