Brexit Phase II - IOSS

[Mantra]

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

[guccij]

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.

[Mantra]

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.

[GamesLore]

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.

[martindowling]

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.

[Josh Barling]

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

[GamesLore]

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.