Ecommerce Challenges and Global Solutions
December 16, 2022
Today's ecommerce and online marketplaces face multiple challenges. Various regulations on cross-border trade make it difficult to sell and ship packages globally.
IOSS and VAT in the EU
Businesses shipping to the EU from July 1, 2021 can use the IOSS e-portal to fulfill their e-commerce value-added tax (VAT) obligations on distance sales of imported goods.
Therefore, all commercial goods imported into the EU from a third country or third territory will be subject to VAT regardless of their value.
IOSS allows electronic interfaces selling imported goods to buyers in the EU to charge, declare and pay VAT to the tax authorities, instead of the customer handling VAT at the time the goods are imported into the EU as before.
If the seller is not registered with IOSS, the buyer must pay VAT and usually a customs clearance fee charged by the carrier.
What is the Crossborderit (CBIT) solution?
CBIT offers its customers a fast range of services that make it easy to handle global regulations. This ensures that the marketplace customer can sell globally online without any problems.
Shipping to the EU will no longer be a problem, with Crossborderit (CBIT) it is easy to calculate, collect and pay taxes. Managed with a simple pricing structure, CBIT can take care of the IOSS for you, the landed will be like a domestic shipment.
In addition, CBIT integrates with the IOSS app along with Shopify's tax and duty calculator that allows merchants to calculate taxes at checkout, report shipments using your CBIT IOSS number and enter EU countries under the new "one stop shop" rules.
Don't wait any longer, contact the Crossborderit team and ship to the EU hassle-free.