The EU just made it easier for e-com merchants to sell in Europe
December 16, 2022
Businesses shipping to the EU a since last year can use the IOSS electronic portal to fulfill their e-commerce value-added tax (VAT) obligations on distance sales of imported goods.
Therefore, all commercial goods imported into the EU from a third country or third territory will be subject to VAT regardless of their value.
This is now much simpler thanks to the Import One Stop Shop (IOSS) which allows electronic interfaces selling imported goods to buyers in the EU to charge, declare and pay VAT to the tax authorities, instead of the customer handling the VAT at the time the goods are imported into the EU as before.
In case the e-commerce does not register with IOSS, the buyer will be responsible for paying VAT and customs clearance fees.
Luckily for Shopify merchants, Crossborderit (CBIT) can integrate with Shopify's tax and duty calculator, thus allowing merchants to calculate taxes at checkout, report shipments using their CBIT IOSS number and enter EU countries under the new "one stop import" rules.
Create your largest sales market
If you have an e-commerce business, you may also want to sell your products to consumers in the EU. The EU e-commerce market is a huge market and is expected to continue to grow in 2022. The main benefit of selling online is to reach customers all over the world. But to do that, you must be on IOSS.
Make sales transparent
If a company is registered with IOSS, customers will be able to pay the full product price and taxes. When products are imported into the EU, this means that the shipment will be in your hands without any complications.
If you are not IOSS-registered, your customer will be responsible for paying VAT, which will result in costs, shipping delays and customer complaints.
Increase customer loyalty
No one wants to surprise your customers with additional invoices and extra costs for products they already paid for. A second invoice is not welcome, customers will simply decide to complain or go elsewhere where they can be offered a solution.
The transparency provided by IOSS will help you generate loyal international customers and ensure that most shipments never stop at the border. Deliveries will be landed as a domestic shipment.
The Import One Stop Shop (IOSS) is here to help e-retailers with their EU sales, and with the help of Crossborderit's IOSS representation (CBIT) this will be very easy.