Handling fees to recipients despite IOSS use

[Morning]

It's come to my attention that Hungary Post will still be collecting fees before delivery, even if a package is sent with an IOSS number. 399-799 HUF (1.13-2.27 Euro).

https://posta.hu/vam2021

This goes against the intention of the new EU VAT rules (the customer pays no more than what they pay at checkout) but they've done it anyway.

Any other rogue fees that we know of?

 

[romeo b]

What?! Is that using your own IOSS then, or with eBay?

 

[Morning]

That's irrelevant. I've not had an IOSS order to Hungary yet. I was told by a Hungarian facebook follower, and given the link above which confirms it.

It's not a mistake with a particular IOSS consignment, it's the policy of Hungary Post. Apparently it did not go down well in Hungary. I've been checking other member-state postal service websites, but haven't found any other instances of this kind of thing so far. As I said, it's against the explicit intentions of the legislation.

 

[romeo b]

That's irrelevant. I've not had an IOSS order to Hungary yet. I was told by a Hungarian facebook follower, and given the link above which confirms it.

No, I was trying to see if it's merely via eBay or other marketplace. I have 2 orders for Hungary due to be sent today, both via eBay. I was trying to see if eBay had some better deal that's all, but IOSS should be uniform and like you say against the intention of it's purpose.

 

[Morning]

I was trying to see if eBay had some better deal that's all, but IOSS should be uniform and like you say against the intention of it's purpose.

Yeah I think that would be highly unlikely.

 

[romeo b]

Have translated that HU website - is it not just stating the factual changes? And those charges would apply if you sent items without any IOSS applied? Then again it does show a table item showing VAT paid at purchase. Hmm.

 

[Morning]

The second full row of the table refers to IOSS consignments.

 

[romeo b]

I was on the phone to RM C+D just now, for nearly an hour, and as it happens the lady I was talking to is Hungarian. I sent the link to her, she's going to reply to me soon. I'll let you know her reply. She said "that should not happen to an IOSS/paid item" so let me see what she says.

 

[Morning]

Polish Post (poczta-polska) are also collecting handling fees according to their website. 8.50PLN (1.88EURO) even for IOSS consignments.

https://www.poczta-polska.pl/inform...ugi-zgloszen-celno-podatkowych-od-1-lipca-br/

 

[romeo b]

what the..? What’s the point of IOSS then?! Ridiculous. Literally just bringing something into place to charge random amounts for.

How can this even be allowed? It completely defeats the purpose of sending stuff tax paid.

Is it the best explanation like a nominal fee now for clearing the (pre-cleared) item in addition to actually posting it? How can it be any different to clearing the item for post when it arrived pre-tax changes? Surely tax paid = nothing needs doing.

Why isn’t the news filled with raging business owners, customers and IOSS trauma?

How is anyone expected to realistically continue EU trade? I imagine when RM DDP goes live, this charge would be passed back to us (seller) at invoice time. Unless it’s a set amount per country that we are told in advance. Because we need to know this, right now.

direct from EU website:

What are the advantages of the IOSS?
The IOSS facilitates the collection, declaration and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. The IOSS also makes the process easier for the buyer, who is only charged at the time of purchase, and therefore does not face any surprise fees when the goods are delivered. If the seller is not registered in the IOSS, the buyer has to pay the VAT and usually a customs clearance fee charged by the transporter.

 

[Morning]

Don't have time to rage, just need to confirm which countries are not charging handling fees on IOSS consignments. Nothing I can do about it but find out the correct information for my customers.

So far I've confirmed (through checking postal service websites) no fees for IOSS consignments: Austria, Belgium, Denmark, Finland, Germany, Ireland, Italy, Netherlands, Spain, Sweden.

Countries confirmed for fees on IOSS consignments: Hungary, Poland.

Need to check France as I couldn't find the info I needed. I've checked a few others but need to do more reading on those sites. It's going to be a long day tomorrow.

 

[romeo b]

My fear is that as soon as one does it, they all do it. But how they can do it legally speaking makes no sense, like you say it’s against everything the IOSS serves to sort out.

 

[Morning]

Despite the EU VAT rules being EU-wide, they still had to be put into law at member-state level. I guess not all countries did this equally. Czechia haven't even completed the process yet.

I doubt they'll all end up charging fees - this legislation was written by EU states, so some of them will want to abide by the intention of it, at least.

 

[Mr Dibb]

Magyar Posta is a private company, so they can charge fees if they like. Of course it is possible Royal Mail will use GLS instead of Magyar Posta so fees may not apply.

This is why I have not jumped in on IOSS. If they had half a brain, the EU would have started the scheme and ironed out the teething issues before removing the 22EUR exemption. But since when have the EU done anything with common sense.

 

[Morning]

Royal Mail list Magyar Posta as their Hungary delivery partner and Poczta-Polska for Poland. That's for tracked items at least.

I've checked postal service websites for all member-states and confirmed that the following *don't* apply fees to IOSS packages: Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Ireland, Italy, Lithuania*, Luxembourg, Malta, Netherlands, Portugal, Spain, Sweden

The rest are either explicitly applying fees, or I've been unable to determine if they intend to or not.

*Lithuania will introduce a 1 euro fee from October 1st.

 

[romeo b]

Royal Mail list Magyar Posta as their Hungary delivery partner and Poczta-Polska for Poland. That's for tracked items at least.

I've checked postal service websites for all member-states and confirmed that the following *don't* apply fees to IOSS packages: Austria, Belgium, Bulgaria, Denmark, Finland, France, Germany, Ireland, Italy, Lithuania*, Luxembourg, Malta, Netherlands, Portugal, Spain, Sweden

The rest are either explicitly applying fees, or I've been unable to determine if they intend to or not.

*Lithuania will introduce a 1 euro fee from October 1st.

Thanks for your continued posts and help.

 

[ADC]

UK should threaten to do the same to EU retailers from January, if they don't drop the fee.

 

[Morning]

Here's a weird one: a German customer was charged a 2 euro fee on delivery (not VAT, just a fee) on an Etsy IOSS VAT-paid package. No idea why, they don't know either. There's nothing on Deutsche Post's website about 2 euro fees. 6 euro fees, yes - for non-IOSS consignments as expected. But nothing about 2 euro fees. And Deutsche Post is one of those postal services that says there won't be fees on IOSS consignments.

 

[romeo b]

Here's a weird one: a German customer was charged a 2 euro fee on delivery (not VAT, just a fee) on an Etsy IOSS VAT-paid package. No idea why, they don't know either. There's nothing on Deutsche Post's website about 2 euro fees. 6 euro fees, yes - for non-IOSS consignments as expected. But nothing about 2 euro fees. And Deutsche Post is one of those postal services that says there won't be fees on IOSS consignments.

which service was it dispatched with?

 

[Morning]

International Standard.

 

[romeo b]

International Standard.

OLA or DE4? I was told to stop using OLA and swap to DE4 since 1st, as OLA is not IOSS compliant. When generating labels, it does not show the IOSS logo. But DE4 does. So irrespective of the tax paid, if the “service” isn’t compliant it’ll get charges still.

You do have to send using “large letter”, but it’s still cheaper than OLA.

I’ve sent loads using DE4, no issues so far, Germany included.

But if you sent via DE4 then not sure and needs investigating..

 

[Morning]

I'm not an OBA C&D user; pay as you go C&D users don't get a choice of service code. But C&D have told me the services I'm using are IOSS compliant.

But anyway, the package must have been accepted as IOSS compliant, as they didn't charge the customer VAT, just a 2 euro fee. If they had charged VAT as well, the fee would have been 6 euro.

2 euro fees are not mentioned at all on Deutsche Post's German language site. It seems the postie just pulled it out of their ass.