How do ecommerce companies benefit from IOSS?
November 29, 2021
In July of this year the new electronic VAT rules came into force. Which affects the following businesses:
Sell or supply goods to customers in the EU who are not registered for VAT.
They make supplies of goods from the EU to customers not registered for VAT.
What is the Import One Stop Shop (IOSS)?
IOSS is a new way of managing VAT and other taxes due when importing goods into any EU country.
It allows businesses to collect, declare and pay VAT on low-value shipments (under €150) for all EU sales in an EU country. This system replaces the previous obligation to register in all countries where goods are sold in the EU.
IOSS also facilitates the process for the buyer, who is only charged at the time of purchase and therefore does not face any surprise fees upon landed.
IOSS representation of Crossborderit
Fortunately for Shopify merchants, Crossborderit CBIT is internalized with the app along with Shopify's tax and duty calculator that 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.
CBIT has it covered for you. 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 easy DDP for these solutions for a great, hassle-free customer experience.
Discover the power of Shopify and Crossborderit for IOSS.