EU VAT declaration: CBIT makes it Easy

February 27, 2022

Trade between countries around the world and the European Union has slowed since 2021. Increased costs of doing business and, in many cases, unexpected value-added tax, customs and shipping costs are passed directly to the end customer.

As a result, many companies simply withdrew from Europe; but the European Union is still the main market and demand remains high.

Lack of transparency and clarity

The inability of businesses to give accurate upfront prices to customers is a major problem due to confusion between VAT and harmonized codes. VAT administration in the EU is difficult because businesses need a unique VAT number in each EU trading country.‍

However, there is still a lack of clarity regarding harmonized product codes, and if product documentation does not include the correct product code and/or description, tariffs will apply, resulting in an unexpected and unwanted bill to the end consumer.

Unexpected costs‍

Trade between the UK and the EU declined in the first three months of 2021 as Brexit and the Covid-19 crisis hit companies hard. One of the biggest problems is unexpected costs that ultimately affect the end customer.

No company wants to surprise customers with unexpected compensation; but tariffs, customs clearance, value-added tax and administrative costs add up. For small-value goods, additional costs for the end customer are not possible. Meanwhile, customers often pay the additional cost rather than refuse to receive the items they ordered. The consequences of these "hidden" costs are not only reduced sales in the EU, but also a very low final profit.

Despite this, demand from the EU continues

Crossborderit can take care of that with no problem‍

Fortunately for Shopify and WooCommerce merchants, Crossborderit CBIT is internalized with the apps along with the Shopify and WooCommerce tax and duty calculator, which allows merchants to calculate taxes at checkout, report shipments using their CBIT IOSS number and enter EU countries under the new "one-stop-shop" rules.

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

For more information visit this link

Damon Baca

Co-Founder

Crossborderit (CBIT)

www.crossborderit.com/IOSS