Crossborderit (CBIT) Helps you to expand to the European Union (EU) smoothly

November 1, 2021

On July 1, 2021, the EU VAT e-commerce package came into force to facilitate cross-border trade within and into the EU. By requiring fully digital handling of customs and VAT on all transactions, and with import VAT due on every shipment to the EU, it has already impacted all B2C e-commerce stakeholders, both in Europe and globally.

An important aspect of the new package is to simplify VAT payment schemes for two main use cases: importing shipments into the EU and cross-border distance sales within the EU:

- Importing shipments into the EU: the new changes make all imported shipments subject to tax, which generates many new transactions in the low-value area. To simplify the payment of VAT on these shipments, the EU introduced the Import Single Window (IOSS).

- Distance sales within the EU: The threshold above which the Supplier must apply the VAT rates of the destination country (where the buyer is located) and register with the tax authority of the destination country has been significantly reduced. To avoid the cost of registering in more than one EU country, the EU has introduced the One Stop Shop (OSS).

IOSS has created a process that helps traders collect VAT and pay it through an intermediary such as Crossborderit.

The Crossborderit Shopify app makes these processes simple and effective. By leveraging Shopify's tax and duty calculator, merchants can calculate taxes directly at checkout and add the €1 fee for Crossborderit's services, so customers have a clear idea of what they are paying.

CBIT handles payment, compliance and reporting with access to our platform for only $24 per month.

Simply sign up and let Crossborderit take care of the rest.

Damon Baca

Co-Founder

Crossborderit (CBIT)

www.crossborderit.com/IOSS