Thanks for such an informative reply. I have also had experience of EU postal authorities doing whatever they want with IOSS, and as you say, no recourse. Can only hope that the situation improves, I know there is also a lot of frustration within the EU from consumers about the way this is operating. I wish you the best of luck, with your scale of operations it must be more like migraine attacks than the headaches some of us are experiencing:-)
"-0 EUR items are a nightmare (we send out a lot of replacement stock). Don't forget that IOSS also deals with duty and a 0 EUR item still has an underlying dutiable value! CBIT simply can't deal with this because it works from the cart total not the underlying product value like Taxamo does. So, we now send out all replacements at a 90% off discount and manually capture 0 EUR payment so that we *can* pay duty"
But IOSS doesn't deal with duty. That's the whole point of the 150 euro threshold - it matches the ‘goods of negligible value' threshold for duty exemption. I'm not sure what you mean when you say "so that we *can* pay duty"?
Regarding replacements, I've only found one reference to replacement consignments in everything I've read on the IOSS:
"There are situations where the imported goods are defected, but the seller allows the importer to keep them instead of returning and then ships new ones.
From a customs perspective, there will be two CDs for release for free circulation as each of those cover different goods that will be released into the single market. The VAT procedure should follow the present situation for replacement of goods."
As to what that procedure is... I have no idea.
As a humorous aside this is forcing us to find out all about the nooks and crannies of the EU - we have a small number of orders from Reunion & French Guyana (Africa) and Guadalupe (Caribbean) and guess what? As French territories, all are part of the EU customs zone (duties) but NOT part of the fiscal territory (VAT/IOSS)... but of course none of the platforms (or shippers!) recognize or understand that so the orders end up exceptions requiring us to do rounds with Shopify, Recharge, CBIT, Landmark etc. I declared them all French and paid VAT just to get them shipped.
It also forced me to take a look at our global store clusters and actually figure out currency and language clusters for gAds targeting- it's pretty fascinating actually, totally on the edges of "useful" but now I know that if I target someone in Kirbati they transact in AUD or Gibraltar GBP *or* EUR so I can send them to the right store. I *never* would have bothered with this, but now I'm crazy optimized for the 100(?) orders a year we get from far flung regions so that's a... win?
We are a new startup and have the fortune of launching our business right in the middle of these huge VAT policy changes.
I have a quick question on Crossborderit, how is everyone's experience using Cbit and have your products gone through smoothly to customers?
We are registering (trying to, at least) directly with the UK for VAT, but still trying to find the best option for EU VAT IOSS. Taxamo, Avalara etc are all out of our price range
Any answers appreciated
The Crossborderit (CBIT) app is up and running.
Crossborderit charges €1 per shipment and $24 per month for access to our platform. ( + payment processing fees – depending on payment method)
To get you started with Crossborderit IOSS services, please follow the steps below:
Step 1: Add the Crossborderit app on Shopify APP store: IOSS and Landed Cost Service | Shopify App Store
Step 2: Register/ complete the registration for IOSS service on our site; https://cbit.crossborderit.com/merchant-onboarding,
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.
Hello. Where is the button to register please?
I'm stuck in a loop... installed the Shopify app. A link directs me to your website. Then when I click 'start' on your website it just sends me back to the shopify app store and tells me to install your app.
On the site I can login as an option, but not register.
Thanks a lot!
I had the same problem earlier today....when you click start on the website and it takes you to the App Store, press add app and it will open up the app in Shopify. Press the link in the app and it takes you to the correct page.