Yes IOSS will be for just those shipments under 150€. Shipments above that will require classification, Duties, Taxes, and full clearance fees. If you are shipping from the EU to the EU you do not need to work in the IOSS. It only matters for products entering the EU from outside the Common Market.
If you want to manage true DDP above €150 you certainly can use Crossborderit but it has different requirements.
This will be possible in a few weeks but not from day one. We have the functionality in the system we just need to make sure it works with the tax authorities. Stay tuned on this.
The crossborderit original solution was not for IOSS. We are doing true DDP so we pay the carrier. If you are interested in this reach me on our website. We are a little slammed with IOSS at the moment but this challenge is our core business. Contact me offline and our Shopify app which will be available soon covers this true DDP model.
This IOSS is very confusing. Each country in EU has its own VAT rate. Also, how about duties? Do we need to charge customer’s duties for less than €150 as well? For the shipment over €150, what if I want to do DDU which is less harassments for us. It makes everything so complicated now.
IOSS will not require duties up to 150€ only taxes (VAT) This is actually a good thing because before you were paying Duties and VAT from around 22€ plus. So with IOSS there are not duties from 22€ to 150€ this helps your company it is more simple.
Duties are only going to be levied on items above 150€
I hope that helps
How about freight charges then? Do I have to charge EU VAT on this as well?
Registering is not mandatory for lower sales to the EU however having an IOSS will make the transaction and delivery far easier for customers, otherwise they will be hit with the VAT and any handling fee once their item arrives in their country and I can see this potentially resulting in many refusals and therefore returns. I think many UK merchants simply want to make the whole transaction as transparent and seamless as possible. We only sell a small quantity to the EU so we didn’t need to register but personally I think it will make things far easier in the long run to have an IOSS and Royal Mail specifically ask for our IOSS number on their click and drop system so that this can be made visible of CN22 customs declarations.
Yeah. Since Royal Mail is asking for this IOSS number, I think it’s better to have one. I understand the customers will not be happy when they are being hit by the VAT and admin fees before receiving the parcel so trying to make things as clear as possible.
@Dbaca - Can you also confirm when your PayPal onboarding will be happening please? I’m assuming we should not be adding our IOSS number to our shipping documents yet until we have completed the PayPal onboarding?
We already have a business paypal set up for our store. Will there not be issues in setting up another one with all the same set up info? Can we use our existing business paypal account in some way? Or we can use shopify reports to extract all EU sales which would be simpler.
The onboarding is with PayPal. I believe you can use the same account.
In the Shopify settings if you enable collection taxes for the EU Shopify will apply the country specific VAT in the checkout. So Shopify holds and maintains all the relevant tax rates for all 27 countries.
Is there any way in the theme code / liquid code to access these tax rates? This will mean that we can show customers the relevant tax rate, and the total price including country specific VAT before they go to the checkout.
Applied for our IOSS number Monday morning via Crossborderit, they submitted details to Swedish authorities, had our number arrive this morning. Incredible service and now no issues for us tomorrow going forward.
Made our announcements to our many thousands of EU customers this afternoon so very very relieved!
Can I ask if your number came from the Swedish tax authorities or from Crossborderit? The crossborderit website has absolutely no details that I can find about who they actually are/postal address/company registration etc/etc that you would expect to see from a financial company.
@Max1957 We looked up Crossborderit on the Swedish business register and they are duly registered with all the details. You can also download annual reports, and other documents. We also wanted some assurance regarding the company listing and it seems popular with investors in Sweden.
We just got ours today from the, within 2 days, this was really fast.
It came from the Swedish tax agency, see below
Now I have to figure out the following (im an accountant and traded with every country via our business for many years, but now I don’t really understand anything:)
So how this threshold will work in Shopify?
1.) we have exemnify because we sell uk, and worldwide and had to show both prices on the site,
I guess now I can remove exehmnify, because they removed the vat at checkout of the country was outside the uk
2.) then how will there threshold work, how do I know what other admin charges we have to pay for couriers?
how does anyone know what duties customer will pay above the threshold, when then goods arrive.. I know that is not related to loss…
I will book some sessions but had no time yet, meanwhile we are shipping on daily basis…DPD already blocked anyone who has no IOSS nu so you cant use them without it
Kind regards,
The Swedish Tax Agency
International Tax Office Stockholm
SE-171 94 SOLNA
Sweden
skatteverket@skatteverket.se
Telephone: +46 8 564 851 60
@Det742021 Many thanks. I am going to wait a month before applying to see how this company’s solution actually works. I use Royal Mail Click n Drop for 95% of my orders and UPS for the other 5%. UPS aren’t blocking deliveries if you don’t have IOSS number. Any feedback on how you get on with crossborderit would be gratefully appreciated
@Det742021 Shopify has already made the necessary changes for this setup. We received another email on whether we wish to upgrade the EU tax settings on Shopify as they would need your IOSS number. Please note that once you change to the IOSS system on Shopify, you cannot revert back apparently. It should cater for the £135/EUR 150 threshold too, so orders under £135 will have VAT included, orders over £135 will be without VAT.
HI Matt
When did you recieve this email? I just checked the backend of shopify and could not see any info on this change.
Thanks
@Max1957 Swedish tax authorities. When you sign up with Crossborderit their T&C’s etc are very comprehensive as is their portal. I had a few doubts to start with but I have none now tbh. They have been very good throughout the whole process.