WooCommerce and Shopify retailers can be on IOSS thanks to the Crossborderit application

December 16, 2022

Online marketplaces are now treated as "deemed VAT suppliers" and are subject to VAT on the sale of B2C products they provide through their online platform in the following cases are subject to VAT on the sale of B2C products they facilitate through their online platform in the following cases:

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

2) 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 (IOSS) regime.

Goods imported into the EU must 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 cleared for free circulation in a different country

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

In fact, the responsibility in the country of destination may pass to the importer of record, and the 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 paying them when they buy the product. This second invoice and payment is not welcome. It can damage your brand and in the worst case, the customer will return the product or simply not buy from you again.

Crossborderit manages WooCommerce and Shopify merchants for IOSS shipments.

Crossborderit CBIT has developed a SaaS platform software that will allow you to upload your classifications, calculate the total import costs for the buyer, collect all fees and send them to the import agent, all together with all relevant master data, thus making a fully complete B2C customs declaration for a smooth cross-border entry in the destination country.

Crossborderit integrates with Shopify and WooCommerce apps along with the tax calculator, allowing merchants to calculate taxes at checkout, report shipments using their CBIT IOSS number and enter EU countries under the new "one stop shop" rules.

Damon Baca


Crossborderit (CBIT)