European VAT and IOSS for businesses in the rest of the world
December 16, 2022
If you have an eCommerce business, you may also want to sell your products to consumers in the European Union. The EU e-commerce market is a huge market and is expected to continue to grow in 2022. The main benefit of selling online is to reach customers all over the world. But to do that, you must be on IOSS.
Moreover, to sell to the European Union you must be aware of local trade regulations and VAT obligations.
Failure to comply with the new e-commerce VAT obligations may result in fines and bans.
Crossborderit's tax representation can help you overcome this change and save you headaches.
What are the regulations for importing into the EU?
Sellers in the rest of the world must charge VAT on all products they sell to EU customers. VAT rates vary by EU member state. Therefore, you must determine the VAT rates of the product for all EU countries to which you are shipping.
In addition, you must customs declare all goods entering the EU regardless of their value. Therefore, when you sell to customers in any of the 27 EU member states, you must file a customs declaration.
Crossborderit can help with these EU restrictions
Crossborderit (CBIT) integrates with Shopify. The Crossborderit app, along with Shopify's duty and tax calculator, 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.
The current Crossborderit application allows automatic reporting of IOSS shipments. Future versions will allow VAT collection at checkout.
Crossborderit's Shopify application costs $24 per month. When this fee is charged on Shopify, it will replace the $19.99 fee Crossborderit charges for access to the CBIT system. This access includes all reporting, compliance and system access.