How do the new VAT changes affect ecommerce?
Published 17 June 2021

Those in the e-commerce supply chain will be affected by the VAT rules on cross-border e-commerce activities, from online sellers (both inside and outside the EU), to postal operators.
What should ecommerce do?
From July 1st of this year all low value shipments (150euros) imported into the EU from a third country will be subject to VAT. This creates an obstacle for retailers shipping B2C within the EU to declare and charge VAT.

To address this problem the EU has created the Import One Stop Shop (IOSS), which will allow buyers in the EU to charge, declare and pay VAT to fulfill their e-commerce VAT obligations.
But what about companies that are not based in the EU?
If this is the case they will need to assign an IOSS representative to take responsibility for filing VAT returns and payments. The representative must be registered with the tax authorities in their country of establishment to obtain an IOSS VAT identification number to be used in customs clearance processes. 

One of the advantages of these is that by already having an IOSS identification number you will be able to use it in the rest of the EU member countries.
How Crossborderit can help you
A CBIT integration can provide the total cost at destination at checkout. We can collect and pay duties and taxes for both low-value and high-value IOSS.

We offer a SaaS platform software where our solution allows you to upload your classifications, allows you to calculate the total import costs for the buyer, collect all fees and forward them to the import broker, all this together with all relevant master data, thus making a fully complete B2C customs declaration for a smooth cross-border entry in the destination country.

Learn more about Crossborderit's IOSS representation.
Contact the Crossboderit team to get the advice you need on the new IOSS and also be your IOSS Representative.

CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.

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Damon Baca
Crossborderit (CBIT)