IOSS: an expansion opportunity for online retailers

Until July 1, all orders under EUR 150 arriving in the European Union from other countries were exempt from customs clearance. As their value was very low, they could circulate without any problems.

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But the rules have changed and all online purchases made from a third EU country to EU member countries will have to pay VAT on each product, a tax from which they were previously exempt.

The aim is to allow companies inside and outside the EU to compete on a level playing field, bearing in mind that production costs are very different, especially when compared to those in Asian countries. Products purchased in the EU will not be subject to any surcharge, with the aim of protecting European stores in the competitive international trade.

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Implementation of IOSS

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The Import One Stop Shop (IOSS) was created to facilitate compliance with e-commerce VAT obligations on distance sales of imported products.

The IOSS allows suppliers and electronic interfaces selling imported products to EU buyers to collect, declare and pay VAT to the tax authorities, instead of the buyer paying VAT at the time of importing the products into the EU.

Plus if you are a merchant on Shopify, CBIT integrates with the app along with Shopify's tax and duty calculator which 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.

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Sign up with Crossborderit and ship hassle-free.

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Damon Baca

Co-founder

Crossborderit (CBIT)

www.crossborderit.com/IOSS

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