VAT and ecommerce in the EU: what obligations do I have to comply with?

December 16, 2022

The new special VAT regimes OSS and IOSS focus on the member state of identification / registration the fulfillment of tax obligations for online sales that are territorially relevant within the Community.

In particular, the online seller declares and pays all tax to the member state of identification which then transmits the periodic declarations and payments to the relevant country of consumption. The latter is responsible for the control phase by applying its own legislation.

Operators making intra-Community distance sales of goods

Online sales of goods are now subject to VAT in the country where the recipient of the goods is domiciled. To facilitate the management and settlement of the tax, it is possible to use a one stop shop (OSS) system that allows VAT on all intra-Community distance sales to be declared and paid in a single Member State.

Operators making distance sales of goods imported from third countries

This is a special regime for the taxation of distance sales of goods that are shipped from the territory of a third state.

For goods that are imported from outside the EU and have a shipping value not exceeding €150. Marketplaces will be treated as "deemed VAT suppliers" and will be liable for VAT on the sale of B2C goods that they provide through their online platform.

If you are a Shopify seller CBIT is here to support you

Crossborderit (CBIT) integrates with Shopify. The Crossborderit app, along with Shopify's tax and duty calculator, 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.

The current Crossborderit application allows automatic reporting of IOSS shipments. Future versions will allow VAT collection at checkout.

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.

Simply sign up and let Crossborderit take care of the rest.

Damon Baca


Crossborderit (CBIT)