Expand your E-Commerce sales by selling to Europe
December 16, 2022
As we are well aware since July last year the new EU VAT regulations came into force. This affects many companies in the B2C e-commerce supply chain that sell to consumers in the EU.
Luckily the EU created the Import One Stop Shop (IOSS) porting designed to simplify VAT compliance requirements for non-EU e-commerce traders and alleged suppliers (i.e. market facilitators) selling low-value products in the EU. All 27 EU member states are participating in the IOSS scheme.
New EU Policies help you grow your business
The main benefit of the IOSS scheme is that it gives companies access to all 27 EU member states with a single registration.
- Accelerated customs clearance: The IOSS system will help avoid delays at customs because VAT is collected at the point of sale.
- Simplified compliance for traders: E-commerce sellers and marketplaces can use a single IOSS registration to declare and pay VAT on all low-value shipments at €150.
- Simplified logistics: Goods listed on the IOSS with the appropriate HS codes can move freely within the EU, so they can be imported into any member state and then transported to their final destination.
This means that being registered with IOSS can help you grow your business, save you time and money, and make it easier to get your packages into the EU.
Customers pay Sales tax in the check out
If a company is registered with IOSS, customers will be able to pay the full price of the product plus applicable taxes. When products imported into the EU, customers no longer have to pay (value added tax or additional fees) as expected, it can improve the customer experience.
In case of not being in IOSS, your customer will pay VAT when importing goods into the EU, which will generate unexpected costs and claims for your company.
Companies like Crossborderit have developed a service to calculate taxes and duties. If added to the online store, it will allow full display of VAT and other taxes payable in the marketplace cart. The Crossborderit database includes VAT, tax rates, minimums and active free trade agreements for most countries in the world.
Shopify and WooCommerce apps
Now Shopify and woo-commerce retailers belonging to countries outside the EU can be on IOSS with the help of Crossborderit thanks to its IOSS representation. This will allow merchants to calculate taxes at checkout, report shipments using their IOSS CBIT number and enter EU countries under the new "Import One Stop Shop" rules.
Don't let your business be affected by Brexit and the new EU trade regulations, contact us and you will receive your IOSS number within a few days.
Get IOSS Representation with CBIT for your Shopify store (Sign Up)