Ecommerce IOSS solution - EAS project. Any experience or advice?

[luluexpress]

After looking around, and reading almost the entire IOSS thread on here, there doesn't seem to be many affordable options that can be integrated with Shopify apart from EAS Project.

Their reviews seem to be really good, but I thought I'd ask around a bit more to see if anyone has been using them and how it's gone. Or if you're using another IOSS solution. I've seen a lot of responses from their employees/the owner, so I'd prefer actual clients.

I would have gone for Taxamo assure but no Shopify integration, and I don't believe I qualify for RM's DDP option since my volume isn't high enough. Apparently CrossborderIT was a decent solution until they raised their prices, and the app isn't compatible with my store so there's that.

Love how many easy, affordable options we have 2 years on, totally isn't still a complete pain in the ass just to research.

 

[Paul Carmen]

It's sounds more of a Shopify issue, there's options for WooCommerce and Magento as more people develop for them.

Do Shopify not have anything on their roadmap to deal with it?

 

[DefinitelyMaybeUK]

I don't believe I qualify for RM's DDP option since my volume isn't high enough

There didn't use to be a volume threshold for RM DDP - have you checked with your account manager? You do have to have the service granted for your account though, as the DDP charges are invoiced a good few weeks later and RM are liable up to that point so there's a degree of trust involved. TBH, we favour their MPR/DDP service over MP7/IOSS, and it's a great shame it's only available to limited number of countries (as yet). There is no €150 limit on the DDP service, the service is cheaper (especially to France), the DDP fee is cheaper than PAYG IOSS offerings and we've never had any customs issue apart from Ireland*.

* Ireland has a number for restrictions over and above the usual postal union items and An Post returns these parcels, whether sent DDP or IOSS. The same OTT restrictions have recently come in for France which is problem for IOSS courier shipment, but RM DDP is fine to them - go figure!

 

[LPB 123]

There didn't use to be a volume threshold for RM DDP - have you checked with your account manager? You do have to have the service granted for your account though, as the DDP charges are invoiced a good few weeks later and RM are liable up to that point so there's a degree of trust involved. TBH, we favour their MPR/DDP service over MP7/IOSS, and it's a great shame it's only available to limited number of countries (as yet). There is no €150 limit on the DDP service, the service is cheaper (especially to France), the DDP fee is cheaper than PAYG IOSS offerings and we've never had any customs issue apart from Ireland*.

* Ireland has a number for restrictions over and above the usual postal union items and An Post returns these parcels, whether sent DDP or IOSS. The same OTT restrictions have recently come in for France which is problem for IOSS courier shipment, but RM DDP is fine to them - go figure!

Do you mind me asking what prices you're paying for MPR to France as opposed to MP7? We found that MPR was always a little more expensive than MP7 for all countries.

For us to France MPR was about £6.36 whereas for MP7 was around £6.

The DDP element is cheaper than most PAYG IOSS offerings, but you do lose a few % as they're charging you VAT on top of the sale price through DDP rather than it being inclusive when sold through IOSS.

Take France sale of £100, they'll charge you £20 import VAT through DDP as they're charging 20% on top of the sale whereas with IOSS you'd only be paying £16.67 VAT. That's my understanding anyway and how we did the calculations.

 

[antropy]

It's sounds more of a Shopify issue, there's options for WooCommerce and Magento as more people develop for them.

Indeed and OpenCart has this: https://www.opencart.com/index.php?...info&extension_id=40383&filter_member=antropy

Paul.

 

[DefinitelyMaybeUK]

Do you mind me asking what prices you're paying for MPR to France as opposed to MP7? We found that MPR was always a little more expensive than MP7 for all countries.

Yes, you're correct - apologies for the mis-information. I was thinking back to when we moved MP1 to MPR. The MPR/DDP prices are all more expensive than the country priced MP7, but some are better than other. When taken as a whole using say Taxamo as the IOSS provider, then the overall postage+fee price looks to balance out.

The DDP element is cheaper than most PAYG IOSS offerings, but you do lose a few % as they're charging you VAT on top of the sale price through DDP rather than it being inclusive when sold through IOSS.

Take France sale of £100, they'll charge you £20 import VAT through DDP as they're charging 20% on top of the sale whereas with IOSS you'd only be paying £16.67 VAT. That's my understanding anyway and how we did the calculations

I'm not sure I understand this - the RM £0.50 DPP fee and the Taxamo fee £2 are zero rated. The EU VAT that RM invoices you for (they call it "taxes") is outside the scope of UK VAT. I've looked at a couple of recent invoiced transactions and the amounts are within a few pence of what we charged the customer, most likely due to € to £ exchange rate calculations. The taxes charged are always at the in-country rate, i.e for the two I checked, Netherlands was 21%, Malta was 18%.

We don't use Shopify and can't say that RM DDP would be supported either at their checkout - you still need to calculate and bill the customer in a similar way as an IOSS solution, but without the interaction required to an intermediary like Taxamo. We use a custom solution via the API's for both RM DDP and Taxamo IOSS.

 

[LPB 123]

I'm not sure I understand this - the RM £0.50 DPP fee and the Taxamo fee £2 are zero rated. The EU VAT that RM invoices you for (they call it "taxes") is outside the scope of UK VAT. I've looked at a couple of recent invoiced transactions and the amounts are within a few pence of what we charged the customer, most likely due to € to £ exchange rate calculations. The taxes charged are always at the in-country rate, i.e for the two I checked, Netherlands was 21%, Malta was 18%.

For us using your two countries examples and a £100 sale for simplicity and ignoring the fee.

DDP - Royal Mail
Netherlands - RM charge us £21 VAT
Malta- RM charge us £18 VAT

IOSS
Netherlands - £17.36 VAT
Malta - £15.25 VAT

That's how Royal Mail charged us anyway with DDP. Hopefully that makes more sense of what I meant. Obviously you know your systems and calculations etc for your own business, that's just how it was for using DDP.

 

[DefinitelyMaybeUK]

IOSS
Netherlands - £17.36 VAT
Malta - £15.25 VAT

Ahhh, pretty sure that's not correct - I don't think the EU intended anyone to be given a VAT discount The EU VAT charged applies to the total of goods and shipping charges (in the DDP case for goods over €150, it also applies to any duty charged too) - does your examples include shipping, but only calculate the IOSS portion on the goods value perhaps?

Who is your IOSS intermediary? We use Taxamo as we don't have the volume to warrant otherwise and they have an API for custom sites like ours, unlike some other folk. With Taxamo you pay upfront automatically as per your cart calculation via their API. If you're being respectively billed by your IOSS provider, do those figures tie up with what you charged your customer? Or are you having to manually submit a spread sheet or form each month?

All RM DDP VAT payments are retrospectively billed - while you have to declare what duty and VAT has been paid in the RM customsDutyCosts API field to Click and Drop, it's not necessarily what you get billed, due to exchange rate variances it seems. IIRC, RM have said the amount you get billed is from the real customs authority request, and not based on the customsDutyCosts field which RM only use for some internal reporting.

EDIT: to avoid any doubt, your DDP example payments look correct to me assuming the £100 covers goods and postage charges and they would class the 'VAT' charges as out of scope

 

[DefinitelyMaybeUK]

Hopefully that makes more sense of what I meant.

OK, penny drops - your £100 sale example is gross not net? In which case the IOSS figures are fine For your DDP case, you must be declaring the total wrong to click and drop? The total submitted in the click and drop API is without duty and taxes. There should be sufficient information in the subtotal, shippingCostCharged and customsDutyCosts fields to work it all out separately?

 

[LPB 123]

Ahhh, pretty sure that's not correct - I don't think the EU intended anyone to be given a VAT discount The EU VAT charged applies to the total of goods and shipping charges (in the DDP case for goods over €150, it also applies to any duty charged too) - does your examples include shipping, but only calculate the IOSS portion on the goods value perhaps?

Who is your IOSS intermediary? We use Taxamo as we don't have the volume to warrant otherwise and they have an API for custom sites like ours, unlike some other folk. With Taxamo you pay upfront automatically as per your cart calculation via their API. If you're being respectively billed by your IOSS provider, do those figures tie up with what you charged your customer? Or are you having to manually submit a spread sheet or form each month?

All RM DDP VAT payments are retrospectively billed - while you have to declare what duty and VAT has been paid in the RM customsDutyCosts API field to Click and Drop, it's not necessarily what you get billed, due to exchange rate variances it seems. IIRC, RM have said the amount you get billed is from the real customs authority request, and not based on the customsDutyCosts field which RM only use for some internal reporting.

EDIT: to avoid any doubt, your DDP example payments look correct to me assuming the £100 covers goods and postage charges and they would class the 'VAT' charges as out of scope

It's not that they are receiving less (nor should they) It's the fact that the value that the tax is being applied to is different so hence a different VAT amount is charged.

To take the above example again.

Netherlands - £100 on CN22 so £21 charged.

With IOSS the £100 is inclusive already of the 21% VAT so the CN22 would only have £82.64 on it as that's the ex Netherlands VAT figure.

So this is why £21 would be charged on the DDP amount but only £17.36 through IOSS as DDP is charging 21% on a higher amount so obviously creates a higher figure.

Another example which will be even easier is the French as they have the same VAT rate as us. With IOSS you can charge the same amount as a UK sale.

DDP

For DDP to France if you sell for £100, you'll get billed £20 import VAT, yes? Which leaves you with £80 with the VAT taken off.

IOSS

For IOSS you can sell £100 France the same as you would in the UK as you'll receive £83.33 with VAT taken off.

The £3.33 difference is the fact the 20% VAT is being applied to £100 for DDP and only being charged on £83.33 with IOSS.

Hopefully this makes sense.

 

[LPB 123]

OK, penny drops - your £100 sale example is gross not net? In which case the IOSS figures are fine For your DDP case, you must be declaring the customs total wrong to click and drop? The total submitted in the click and drop API is without duty and taxes. There should be sufficient information in the subtotal, shippingCostCharged and customsDutyCosts fields to work it all out?

Ah you got it.

You can't do it ex of VAT to click and drop (we use a different order management system) as you've not collected VAT if using DDP.

It would be wrong to tell declare the sale as £83.33 not £100 as what you've collected for DDP isn't VAT. So you would need to declare the true value of £100 what you charged.

 

[DefinitelyMaybeUK]

It would be wrong to tell declare the sale as £83.33 not £100 as what you've collected for DDP isn't VAT. So you would need to declare the true value of £100 what you charged.

Not sure that's right though, if only because the customs declaration CN22/CN23 is for goods only - your saying it should list an "EU VAT" line in order to balance the monies paid, but at the same time you're being billed incorrectly, in effect paying EU VAT on EU VAT already paid?

 

[LPB 123]

Not sure that's right though, if only because the customs declaration CN22/CN23 is for goods only - your saying it should list an "EU VAT" line in order to balance the monies paid, but at the same time you're being billed incorrectly, in effect paying EU VAT on EU VAT already paid?

In theory you're being billed EU VAT on EU VAT and it seems unfair but technically you didn't collect EU VAT.

You collected an amount equivalent to what you would be billed but it wasn't EU VAT you collected and therefore that figure should be included in the declaration and import costs charged including that figure.

 

[DefinitelyMaybeUK]

You collected an amount equivalent to what you would be billed but it wasn't EU VAT you collected and therefore that figure should be included in the declaration and import costs charged including that figure.

...but whatever it is, it isn't "goods" and certainly isn't being shipped, so needn't factor into the customs declaration for the package which is subsequently being charged VAT (and potentially duty) on We've only done a couple of UPS DDP shipments, and they're billed as expected (ignoring the hideous disbursement charges). I think RM has it right in this case - being taxed on tax already paid is a no-no, even for the EU surely?

EDIT: Just seen RM DDP is now available to

• Switzerland
• Luxembourg (PDDP service only available up to 150 euros)
• Norway
• Sweden (Coming soon)

Woohoo, if only for Norway and Switzerland which aren't covered by IOSS

 

[LPB 123]

...but whatever it is, it isn't "goods" and certainly isn't being shipped, so needn't factor into the customs declaration for the package which is subsequently being charged VAT (and potentially duty) on We've only done a couple of UPS DDP shipments, and they're billed as expected (ignoring the hideous disbursement charges). I think RM has it right in this case - being taxed on tax already paid is a no-no, even for the EU surely?

Again your logic is correct but technically it wasn't tax paid. You haven't collected any tax or disbursed any. You have charged an amount to your customer roughly equivalent to what you will be billed from RM.
It is goods and it is shipping, as the amount you've charged is the percentage on both. You've split it up with your tax calculator by charging this separately for your own billing purposes but it should be included on the customs declaration as its not a collected tax and can't be excluded on the declaration.

Obviously discuss with your accountant as is a live question for you and no longer applies to us but it was one of the reasons we switched. If we do have a sale above the IOSS limit we do submit the total value on CN22/CN23 like I've said.

 

[Customs Geek]

I can’t comment on the mechanics of how operators manage each scheme however I can comment on how goods are valued for customs purposes.
There are strict rules set down for valuation of goods being imported into the EU.
The full rules don’t apply to low value goods so I will comment on that first.

IOSS is applicable to goods with an intrinsic value of €150 or less so excluding any shipping or tax elements.
similarly imports outside of IOSS with an intrinsic value of €150 are not charged import duty only import VAT.
Article 1(48) of the Regulation (EU) 2015/2446 sets out the definition of the term 'intrinsic value'.

Intrinsic value for commercial goods is the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice. Any other related costs, that do not reflect the value of the goods in themselves, must also be excluded from the intrinsic value, whenever they are separately and clearly indicated in the invoice (e.g. tooling costs, license fees, tax, etc.).
So you can separately identify amounts charged to cover tax .

Customs value and value for VAT is a huge topic but you want to read up on what is included and what can be excluded from customs value HMRC publish good guidance on the .gov website.
I can’t add a link so search - working-out-the-customs-value-of-your-imported-goods

Whilst this is UK guidelines it pretty much replicates EU rules

 

[DefinitelyMaybeUK]

Customs value and value for VAT is a huge topic but you want to read up on what is included and what can be excluded from customs value HMRC publish good guidance on the .gov website.
I can’t add a link so search - working-out-the-customs-value-of-your-imported-goods

Thanks for your import. I think you're thinking of this section:

Valuing imported goods using Method 1 (transaction value)

How to use Method 1 to work out the customs value of your imported goods if you're an importer or clearing agent.

www.gov.uk

 

[Customs Geek]

Thanks for your import. I think you're thinking of this section:

Yes thanks for posting the link.
There are 5 other methods but most sellers only need to consider method1.

 

[LPB 123]

I can’t comment on the mechanics of how operators manage each scheme however I can comment on how goods are valued for customs purposes.
There are strict rules set down for valuation of goods being imported into the EU.
The full rules don’t apply to low value goods so I will comment on that first.

IOSS is applicable to goods with an intrinsic value of €150 or less so excluding any shipping or tax elements.
similarly imports outside of IOSS with an intrinsic value of €150 are not charged import duty only import VAT.
Article 1(48) of the Regulation (EU) 2015/2446 sets out the definition of the term 'intrinsic value'.

Intrinsic value for commercial goods is the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice. Any other related costs, that do not reflect the value of the goods in themselves, must also be excluded from the intrinsic value, whenever they are separately and clearly indicated in the invoice (e.g. tooling costs, license fees, tax, etc.).
So you can separately identify amounts charged to cover tax .

Customs value and value for VAT is a huge topic but you want to read up on what is included and what can be excluded from customs value HMRC publish good guidance on the .gov website.
I can’t add a link so search - working-out-the-customs-value-of-your-imported-goods

Whilst this is UK guidelines it pretty much replicates EU rules

This would indicate that you can exclude transport costs from the customs valuation, which you can't? The only shipping costs that can be excluded are shipping costs that are after export which wouldn't be applied to any courier / RM shipment.

"The value of goods used for customs purposes is usually the transaction value, that is the price actually paid or payable for the goods. This is the invoice price plus the cost of transport and insurance. It also includes any other payments made or to be made for the imported goods."

https://www.revenue.ie/en/customs/b...ue of goods used,made for the imported goods.

VAT / Duties can be excluded from the invoice if that's what has been collected. However that's not what's been charged in my opinion. You did not collect the tax and you do not disburse it to the relevant countries tax authority.

"EC Duties or Taxes: Customs duty or other taxes may be deducted from the price paid to calculate the customs value if they are included."

See here 3.8: https://www.revenue.ie/en/tax-professionals/tdm/customs/valuation/valuation.pdf

Obviously you can come to your own interpretation of what you have charged, but I disagree with the deduction you're making.

It would be interesting to know how you get on with exports to Portugal, Spain and Sweden where they usually always ask buyers to send them proof of payment so that it matches the customs value they're presented with. Do you have any issues with shipments using DDP to those countries?

 

[Customs Geek]

This would indicate that you can exclude transport costs from the customs valuation, which you can't? The only shipping costs that can be excluded are shipping costs that are after export which wouldn't be applied to any courier / RM shipment.

"The value of goods used for customs purposes is usually the transaction value, that is the price actually paid or payable for the goods. This is the invoice price plus the cost of transport and insurance. It also includes any other payments made or to be made for the imported goods."

Yes that is correct for determining normal customs value for goods over €150.

You will see however I mentioned separately the specific intrinsic value definition for low value imports and also stated that the normal rules do not apply.

I certainly did not say transport costs can be excluded for customs value for shipments over €150!
The value for customs in the EU is the cost of the goods plus transport and insurance up to the border of the EU. There are also a long list if items that must be added or can be deducted when using method 1. CIFprice.
the value for VAT is the value for customs duty plus the duty plus any costs such as transport to the destination.

Customs valuation rules have been around many many years before IOSS and these principals and procedures are well established and tested.
Prior to IOSS it was generally impossible for an overseas seller to actually charge any EU taxes as the only body permitted to calculate duties and taxes were the customs or border authorities in the country of destination. It is still the customs authorities that must calculate the import duty. It is therefore impossible for a seller to actually charge and remit customs duties to the tax authorities.

It is well therefore understood that under a DDP transaction that adjustments to value can be made as it is a post CIF value and that amounts for border and duty charges not yet paid are included. These are recognised as deductible for customs duty but not VAT.


I won’t argue that some countries have different interpretations and procedure in place to prevent and identify undervaluation in low value shipments that are not subject to import duties.

 

[LPB 123]

Yes that is correct for determining normal customs value for goods over €150.

You will see however I mentioned separately the specific intrinsic value definition for low value imports and also stated that the normal rules do not apply.

I certainly did not say transport costs can be excluded for customs value for shipments over €150!

Transport costs can't be excluded for shipments under 150 euros either though.

See here example 2:

Buying goods from outside the European Union (EU), including the UK

This page outlines the type of customs charges you may have to pay when buying goods online from outside the EU

www.revenue.ie

If transport costs weren't included there would be nothing stopping a company charging a £100 product as £1 with £99 shipping.

 

[Customs Geek]

The starting comment was about intrinsic value which is defined in EU law and is used only to determine whether the goods sit above or below the €150 threshold for IOSS and low value imports.

The example on the link you attached shows there is zero duty based on intrinsic value ( excluding transport) . So exactly what I have been saying.

In none of my comments have I suggested transport is excluded when valuing for vat or charging VAT .

 

[LPB 123]

The starting comment was about intrinsic value which is defined in EU law and is used only to determine whether the goods sit above or below the €150 threshold for IOSS and low value imports.

The example on the link you attached shows there is zero duty based on intrinsic value ( excluding transport) . So exactly what I have been saying.

In none of my comments have I suggested transport is excluded when valuing for vat or charging VAT .

We've been talking about goods valued under 150 euros so no duty is involved anyway.

The disagreement is about whether the total value charged to the customer should be included in the declaration and therefore liable to VAT (I think it should be) or whether the extra charges to cover VAT should be deducted as @DefinitelyMaybeUK thinks.

 

[DefinitelyMaybeUK]

It would be interesting to know how you get on with exports to Portugal, Spain and Sweden where they usually always ask buyers to send them proof of payment so that it matches the customs value they're presented with.

Of those mentioned, the RM PDDP offering only includes Portugal at the moment - while we have shipped there, it's not by any stretch as common as say France, however, no customs issues have been reported by those customers (or indeed any RM DDP customers in the other countries).

Just for clarity @LPB 123 , I believe you're saying that for IOSS sales, it's acceptable to only declare net customs goods because either (i) an EU VAT intermediary is (by definition) facilitating the sale, or (ii) that the seller is themselves EU VAT registered. In contrast, even though DDP intercoms may have been agreed, any reference to VAT in a sale should not be recognised even though it's against the spirit of the terms?

 

[LPB 123]

Yes, I think there can be no argument that when using IOSS that VAT has been collected on behalf of relevant countries tax authority and will be disbursed accordingly. You have a number that means you can collect and remit tax.

You can make your own judgements on whether your charges do fall under taxes and are therefore eligible for the deduction. I do not think you have the authority to collect VAT using DDP so therefore isn't eligible for the deduction in the declaration.

 

[TeemuEAS]

I sense some confusion here

IOSS threshold calculation is 0% VAT cost of goods alone.

For shipments of all values, VAT is charged on all related costs, including shipping and insurance.

With IOSS the collection of VAT is done by the seller, invoiced by the Intermediary and payment of VAT is done by the Intermediary - at least in our case EAS Project. Payment and reporting is monthly.

For DDP we configure stores to collect VAT and duties when applicable. The difference is on who pays the VAT and where: Your logistics partner pays the VAT and duties at destination country customs and invoices you for them. But, you should have collected them because you will pay them.

I hope this helps!

 

[FelixMarvin]

After looking around, and reading almost the entire IOSS thread on here, there doesn't seem to be many affordable options that can be integrated with Shopify apart from EAS Project.

Their reviews seem to be really good, but I thought I'd ask around a bit more to see if anyone has been using them and how it's gone. Or if you're using another IOSS solution. I've seen a lot of responses from their employees/the owner, so I'd prefer actual clients.

I would have gone for Taxamo assure but no Shopify integration, and I don't believe I qualify for RM's DDP option since my volume isn't high enough. Apparently CrossborderIT was a decent solution until they raised their prices, and the app isn't compatible with my store so there's that.

Love how many easy, affordable options we have 2 years on, totally isn't still a complete pain in the ass just to research.

Your Research on Affordable IOSS Solutions for Shopify Integration

It appears that you’ve invested significant effort in researching an affordable IOSS (Import One-Stop Shop) solution that seamlessly integrates with Shopify. Navigating the multitude of available options can indeed be daunting, especially when considering specific factors like integration compatibility and pricing.

While the EAS Project has garnered positive reviews, I understand your desire to hear directly from clients to gain a clearer understanding of their firsthand experiences. Unfortunately, other potentially suitable alternatives, such as Taxamo Assure and CrossborderIT, fall short of meeting your criteria due to integration limitations or pricing adjustments.

The quest for the right IOSS compliance solution can be both intricate and frustrating, particularly when balancing affordability and functionality. By actively seeking insights from fellow users, you’ll be better equipped to make an informed decision that aligns with your needs and budget.

 

[fisicx]

@FelixMarvin - did you use CHatGTP or similar to write that post?