Expand your ecommerce to the EU easily with the help of CBIT
December 16, 2022
Although the new special regimes aim to simplify the formal VAT obligations for e-commerce operators, in order to make use of them from the outset, it is necessary to comply with a series of complex identification and registration obligations.
Those regulations are changing and e-commerce platforms must adapt quickly if they don't want to lose customers. One of the best examples is the new import requirements and the creation of IOSS that occurred last year.
VAT is now required to be charged on all packages entering the EU (regardless of value). The EU VAT rate depends on the customer's country. Therefore, you must specify the VAT rates of the goods for all EU countries to which you ship.
To simplify matters the EU has created the Import One-Stop Shop (IOSS) portal that businesses can use from July 1, 2021 to fulfill their VAT e-commerce obligations on distance sales of imported goods. It also facilitates the collection, declaration and payment of VAT without the need to register separately in each country.
This means that being registered with IOSS can save you time and money, making it easier to get your packages into the EU.
For non-EU sellers you must appoint an IOSS representative such as Crossborderit to register on your behalf.
Crossborderit will execute your IOSS entries and fulfillment without managing a complicated pricing structure and evasive integrations. In addition, Crossborderit (CBIT) integrates with Shopify allowing merchants to calculate taxes at checkout, report shipments using their CBIT IOSS number and enter EU countries under the new "one stop shop" rules.
Crossborderit (CBIT) is here to help - find out more about our IOSS service!