What you need to know in order to sell to the European Union

December 16, 2022

As of July 1, 2021, a new law on the application of VAT to low-value goods imported from non-EU countries came into force in all EU countries.

In the past it was possible to buy a product from China at a low price and not have to pay VAT, this is no longer the case.

However, the duty exemption is maintained for purchases up to and including €150.

The current cross-border experience needed an overhaul: selling internationally should be easier, better and more efficient, and as simple as selling domestically.

Can all companies obtain an IOSS VAT number?

The IOSS VAT number is only applicable to companies based outside the Member States and without representation in the EU. Businesses not based in the EU will need to appoint an intermediary Like Crossborderit in order to apply for the IOSS and for that entity to file the periodic VAT return on their behalf with the EU tax authorities.

That's why Shopify together with Crossborderit have created a new solution.

In the past, there was no direct way to pay VAT to the European authorities. Shipments were held up and customers were frustrated with double invoices and costs that were not calculated in the checkout process. Customers were expected to pay duties and taxes on products over €23.

Access the Shopify application and setup instructions.

Damon Baca


Crossborderit (CBIT)