Five things to know about shipping to the EU

December 16, 2022

As of July 1, 2021, a new law on the application of VAT on low-value goods imported from non-EU countries came into force in all EU countries.

This means that retailers when selling goods to their customers in the EU must calculate, charge and pay VAT on all packages shipped, regardless of their value.

Unfortunately, retailers are not clear that they must also pay VAT on all additional costs associated with the sale. And if they make mistakes in the calculation, retailers must be held accountable.

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What do you know about shipping to the EU?

European one stop shop

Online sellers, including online marketplaces/platforms, can register in an EU Member State and this will apply to the reporting and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU.

The European Union has created a new special regime called Import One Stop Shop (IOSS) for distance sales of low value goods imported from third countries. If your company is not based in the EU you will need to appoint an intermediary (such as CBIT) to be responsible for VAT collection and compliance for you.

Being on IOSS greatly simplifies the collection, declaration and payment of import VAT on behalf of customers. However, if a supplier is not registered with IOSS and does not notify its customers about possible fees, it can increase customer dissatisfaction and the risk that they will not buy from your online platform again.

Harmonized codes

The HS Code is an international nomenclature for the classification of import and export products, with a standardized numerical method, which allows countries to classify traded goods on a common basis for customs purposes.

To ensure that your products reach international customers efficiently and quickly, you must do everything possible to ensure smooth customs clearance for your products. That's what the HS Code is all about.

Seamless customs clearance

Online marketplaces must be aware of the different rules specific to each EU country they ship to, their tax and customs regulations. (These rules are always changing). Unless your company has a department that monitors these issues, this can be a major obstacle to selling to EU countries.

In addition, all goods entering the EU, regardless of their value must be declared. Therefore, when you sell to customers in any of the 27 EU member states, you must file a customs declaration.

Luckily for Shopify merchants, 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 "import one stop shop" rules.

Get IOSS Representation with CBIT for your Shopify store (Sign Up)

Market expansion

The European e-commerce market is huge and is expected to continue to grow in the coming years. Being limited to only selling locally can be a big disadvantage, even for small sellers.

That is why the main benefit of e-commerce is the possibility to reach customers all over the world and with the help of CBIT being present in the EU market will be much easier.


Last year, the European Union initiated new trade regulations. This directly affected all companies importing their products into the EU. Sellers are now responsible for collecting VAT on all goods and declaring each package, as the Low Value Item Exemption (€150) has been abolished.

Don't let these changes limit your expansion to the EU, make Crossborderit your IOSS ally and leave these problems behind.

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

In addition, Crossborderit (CBIT) offers duty and tax calculations, HS code assignment and even electronic declarations, saving companies headaches.

Register with Crossborderit and ship hassle-free.

Damon Baca


Crossborderit (CBIT)