Shopify and IOSS: Shopify retailers can now be on IOSS

November 1, 2021

Marketplaces will be treated as "deemed VAT suppliers" and will be liable for VAT on the sale of B2C goods they facilitate through their online platform in the following cases:

- The sellers are outside the EU, but the goods being sold are already in the EU.

- The goods are imported from outside the EU and have a shipping value not exceeding €150, and the marketplace is registered under the new import one stop shop regime (IOSS)

Goods imported into the EU will have to be declared through the IOSS. If the online marketplace does not opt for IOSS, the customer must be responsible for paying VAT and import duties.

Goods released for free circulation in a country other than the country of destination

In the case of goods of shipments exceeding 150 euros would no longer be used IOSS, after being sold, they are put into free circulation in a country other than the country of destination before being delivered to the final customer.

In fact, the responsibility in the destination country may pass to the importer of record, and additional VAT will have to be registered there. It is essential that the online marketplace has information not only on the products sold, but also on the logistical details after the sale.

Taxes in most countries range from 18-25% and customers are used to having them paid when they buy the product. This second invoice and payment is not welcome. It can hurt your brand. In the worst case, the customer will return the product or simply not buy from you again.

CBIT manages Shopify merchants for IOSS shipments

The current Crossborderit application allows automated reporting of IOSS shipments. Future versions will allow for VAT collection within the payment.

Crossborderit's Shopify application costs $24 per month. When this fee is charged on Shopify, it will replace the $19.99 fee Crossborderit charges for access to the CBIT system. This access includes all reporting, compliance and system access.

Sign up with Crossborderit and make your shipments hassle-free.

Damon Baca


Crossborderit (CBIT)