Announcement

Collapse
No announcement yet.

Brexit Phase II - IOSS

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Brexit Phase II - IOSS

    We've navigated Brexit Phase 1 - base VAT has been resolved and EU VAT is being charged, customs fees incorporated into the Shipping so that we can ship DDP into the EU via those couriers who support the operation, or at least those for whom it has been cost effective too. After a very slow start with the couriers packages are now being delivered (mostly) in a pretty timely fashion and the reject / return rate is back to a more or less acceptable level though some backlogs are still occurring.

    However, as of July 1st 2021 we now have to deal with the implications of the IOSS scheme. Orders up to 150 euros we can continue to treat as DDP, though there is plenty of contradiction over where the import declaration should occur - orders above that seem to have to be processed as DDU.

    Has anyone worked out how to implement this within Sellerdeck yet and is there any guidance around this? I've searched the forums but not had any success in finding discussion on this.

    For those who don't know about this and it's going to affect you then the start point for this might be: https://ec.europa.eu/taxation_custom...r-ecommerce_en. Note that lots of other companies etc are offering 'advice' in this area.

    #2
    Thanks for the post, its good to hear directly from merchants their individual experiences.

    We've been and are still learning about IOSS and trying to understand the impact on merchants and the technology requirements.

    From our understanding of IOSS, the two key points are:
    - DDP for orders under 150 euros and one quarterly VAT return for the entire EU through IOSS
    - No import duty paid on goods under 150 euros

    There are clear benefits for IOSS; however we believe there will be issues with it as well.

    Having a VAT rule change based on cart value can be a bad experience for the customer, especially when you do not know their location until the checkout; I'm certain it will create confusion, resulting in more returns and customer service enquiries.
    If you have the same VAT and Import Duty approach on all orders (DDP) and therefore a consistent message to the online browsers, then you will need a separate VAT registration with each EU country when accepting orders over 150 euros – therefore, more than likely, making the main purpose of IOSS redundant.

    Right now, you can setup a maximum value threshold based on the location. So you could change your VAT settings to match the requirements for IOSS and limit order value to 150 euros (converted into pounds). However, that would mean you couldn’t accept online orders over that value – in our opinion that is not the best way forward.

    At the moment, Sellerdeck Desktop cannot change the VAT rules based on cart value and location. That is a major development in a complex and risky area of the software.
    We have not agreed a way forward just yet, but have been speaking directly with customers to better understand their scenarios.

    I’m keen to learn more, from our customers. If you are open to sharing your situation and thoughts I’d love to setup a call. Please drop me an email.

    Thanks, Josh
    Josh Barling
    CEO | Sellerdeck Ltd

    josh.barling@sellerdeck.com

    Comment


      #3
      Apologies if this is going off topic.

      We are not VAT registered but are considering registering with IOSS to be ready for the changes in July. Has anyone done this - if so could you explain the process please? According to this page
      https://ec.europa.eu/taxation_custom...ss/vat/ioss_en
      you need an EU intermediary to do this which makes us wonder if it is worthwhile at all for relatively low volumes of EU sales.

      I suspect that we might find it better to abandon EU sales altogether, but it is worth looking into I think.

      Comment


        #4
        Hi Josh,

        I haven't responded yet because we and the couriers we're talking to still don't fully understand how this is going to be implemented within the EU and the reality is many countries and the couriers do not appear ready for this change from countries outside the EU.

        One of the key points is whether you can continue to offer delivery duty paid B2C both above and below 150 euros and to continue payment via the couriers thereby cutting out the need to register for IOSS altogether. The sticking point for this is that the couriers would typically clear in France, Belgium or Holland and use the default VAT rates there but some countries seem to expect the clearance to happen in their jurisdiction rather than somewhere within the EU and the couriers don't seem to have planned for the correct country VAT rate to be used.

        Although those conversations continue we have signed up to IOSS as a defensive measure.

        So many unknowns, so little time remaining.

        Rgds, Paul.

        Comment


          #5
          Originally posted by martindowling View Post
          We are not VAT registered but are considering registering with IOSS to be ready for the changes in July. Has anyone done this - if so could you explain the process please? According to this page
          https://ec.europa.eu/taxation_custom...ss/vat/ioss_en
          you need an EU intermediary to do this which makes us wonder if it is worthwhile at all for relatively low volumes of EU sales.

          I suspect that we might find it better to abandon EU sales altogether, but it is worth looking into I think.
          We have low volumes of EU sales and the products we sell are mostly low value jiffy packet size so we use Royal Mail as the most convenient and economic delivery option but they do not appear to offer a Delivery Duty Paid service for exports to the EU but if anyone knows any different I would be interested to know.

          I checked an EU Intermediary online and found that they charge 7.50 per package for the service which I expect is an additional cost to the normal postage / shipping costs and then there would be additional administration needed to interface with the EU Intermediary System, report and account for EU VAT.

          From my point of view it is looking like continuing with EU sales for low volumes is no longer economically viable.

          Comment


            #6
            Solitions are available and integrations also. See https://www.taxamo.com/taxamo-assure-rmg/integration and https://www.royalmail.com/import-one-stop-shop-ioss Unforunately none of these works for us. We will simply add a note to EU orders explaining that they will have to pay VAT and possibly import duties on delivery.
            Reusable Snore Earplugs : Sample Earplugs - Wax Earplugs - Women's Earplugs - Children's Earplugs - Music Earplugs - Sleep Masks

            Comment


              #7
              Originally posted by guccij View Post
              Solitions are available and integrations also. See https://www.taxamo.com/taxamo-assure-rmg/integration and https://www.royalmail.com/import-one-stop-shop-ioss Unforunately none of these works for us. We will simply add a note to EU orders explaining that they will have to pay VAT and possibly import duties on delivery.
              - see latest update concerning Postal Deliver Duties Paid (PDDP) from Royal Mail Business:

              https://www.royalmail.com/business/i...ties-paid-ioss

              I would be interested to learn from anyone that has explored these options.

              We have suspended exporting to EU pending a solution to avoid potential problems with delivery delays, returns etc. - still seems more trouble than its worth for small low value packages!

              Martin
              Mantra Audio

              Comment


                #8
                After Brexit phase 1, it has taken nearly six months for our EU customers to get used to paying there own governments taxes, so the thought of complicating the matter again with IOSS made me also want to throw in the towel with Europe.

                Then I read the DPD issue on the requirements for IOSS. and after the depression of the first 7 pages, page 8 gave me the words I was looking for, " Whilst IOSS is not a mandatory scheme, there are many benefits of registration" .

                That statement was music to my ears and will do just nicely. I will just keep doing what we are doing now and forget IOSS.until the next hurdle is erected.

                Dave

                Here is the document: EU_Vat_Doc.pdf

                Dave O'Neill
                O'Neill Vintage Ford

                Comment


                  #9
                  We are mainly using royal mail and send packages both above and below the 150 euros limit. Royal Mail are suggesting using their PDDP (postal delivery duty paid) service when it is ready. It uses Aura API by Hurricane in the checkout to calculate correct tax and duty (if any). Royal mail would bill us later for the tax and duty along with 50p per package handling. Is this something that can work with Sellerdeck?
                  Mark Faulkner


                  Comment


                    #10
                    I'm sure it can work but will probably need some development effort.

                    The Aura API will need the product details including HR6 code which I don't think is normally available in the checkout, plus you're going to need some way of feeding the resulting charge back into sellerdeck that it's happy with and doesn't try to override.
                    -----------------------------------------

                    First Tackle - Fly Fishing and Game Angling

                    -----------------------------------------

                    Comment


                      #11
                      Will the Aura API be integrated with Royal Mail Click and Drop?

                      Royal Mail Click and Drop appears to be integrated with many online selling market places but Sellerdeck does not get a mention - so has any development taken place to address this?

                      I understand Royal Mail Click and Drop can be used to produce CN22 and CN23 custom declaration labels from interfaced data tables as well as postage address labels and Sellerdeck BREXIT patch releases now includes product variables for HR (tariff) codes and country of origin to show on EU Invoices and guidance has recently been given on how to set different VAT rates that apply for various EU member states so it appears that all the data fields likely to be needed to produce name/address labels, EU VAT Invoices, CN22/CN23 customs declarations, EORI numbers etc. are already catered for.

                      The Aura API development for PDDP by Royal Mail looks promising and I would be interested to know if Sellerdeck or perhaps Codepath are considering developing an 'add on' to interface with Royal Mail Click and Drop/Aura API?

                      Comment


                        #12
                        Originally posted by sulis View Post
                        We are mainly using royal mail and send packages both above and below the 150 euros limit. Royal Mail are suggesting using their PDDP (postal delivery duty paid) service when it is ready. It uses Aura API by Hurricane in the checkout to calculate correct tax and duty (if any). Royal mail would bill us later for the tax and duty along with 50p per package handling. Is this something that can work with Sellerdeck?
                        Mark Faulkner

                        Royal Mail PDDP appears that it may not cater for B2C packages below 150 Euro limit - see link below:

                        https://www.royalmail.com/business/i...ties-paid-ioss

                        Comment

                        Working...
                        X