EU IOSS Signup

Discussion in 'International Business' started by Graham Wharton, Apr 20, 2021.

  1. Kate881

    Kate881 UKBF Newcomer

    10 0
    If you have an IOSS number you can use RM still just not via their PDDP solution, that's what I'm doing via Crossborderit, RM & UPS both allow me to enter my IOSS number when processing shipments.
     
    Posted: Jul 21, 2021 By: Kate881 Member since: Nov 27, 2018
  2. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    Wait what! So a GB seller, registered for UK VAT and IOSS, sells something to northern ireland, we now remit the VAT to the EU?
     
    Posted: Jul 21, 2021 By: Graham Wharton Member since: Apr 20, 2021
  3. RBH

    RBH UKBF Newcomer

    18 0
    And how do I get an IOSS number for less than an arm and a leg?
     
    Posted: Jul 21, 2021 By: RBH Member since: Jul 4, 2021
  4. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    This works for marketplace integrations as the IOSS number is obtained from the integration, and the trading names section is ignored.

    For non marketplace integrations its not so clear. If I create an order manually in C&D under the trading name then the IOSS number is included on both the CN22 and electronic data, but if I import an order from Magento under the same trading name, the IOSS number is not used.
     
    Posted: Jul 21, 2021 By: Graham Wharton Member since: Apr 20, 2021
  5. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    I've just done a bit more digging.

    I imported an order into C&D for a test parcel to belgium. I setup an IOSS number in the trading names section. If I placed an order for postage code IE1, the label did not have any IOSS indication on it at all. If I placed the same order under the code DE4, the label included an IOSS icon. The Royal Mail FAQ states you must use these codes. I'm sure this was mentioned previously in the thread but it passed me by, so here they are again.

    [​IMG]
     
    Posted: Jul 21, 2021 By: Graham Wharton Member since: Apr 20, 2021
  6. schmexit

    schmexit UKBF Contributor

    96 15
    By the way, when sending goods to the UK and declaring the value for VAT, should one include the postage charged or not?
     
    Posted: Jul 21, 2021 By: schmexit Member since: May 7, 2021
  7. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    If you are evaluating whether you breach the £135 threshold you do not include postage. That is the intrinsic value of the goods excluding postage. However once you have determined you need to apply VAT, you charge VAT on both the goods value and the postage.
     
    Posted: Jul 21, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  8. schmexit

    schmexit UKBF Contributor

    96 15
    I am not charging any VAT. I am sending goods over £135 to the EU and the recipient will be liable for VAT. When asked to declare the value of the shipment, do I include or exclude the shipping fee paid to me by the recipient, which is shown on the invoice?
     
    Posted: Jul 21, 2021 By: schmexit Member since: May 7, 2021
  9. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    You should declare the goods value and shipping separately. If you just leave the shipping off, or include it in a single price, then the receiving customs offices are likely (I have seen them do it to me) make up a value for shipping of their own (circa 100EUR) and add that to your declared value and then charge VAT on the whole lot. If you didnt charge your customer any shipping and shipped it for free, make sure it is clear that you are declaring zero for shipping. I always put Shipping £0.00 (included in product price)
     
    Posted: Jul 21, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  10. LHow

    LHow UKBF Newcomer

    17 6
    I spotted the info on the Gov uk site. We don't have an IOSS number ourselves (can't afford the intermediary costs) but I thought the info might be of use on here.
    I think HMRC might need to know your IOSS so as to avoid this situation occurring i.e. northern ireland VAT going to the EU.
    As many people have said the whole situation with EU VAT/IOSS is confusing already, & the rules for Northern Ireland seem to be different as they're still part of the UK.

    EDIT : from gov uk site
    If you’re UK VAT registered
    From 1 July 2021 if you’re registered for IOSS you must account for VAT on the sales of eligible low value goods in consignments not exceeding £135 in value into Northern Ireland on your IOSS return.

    If you make supplies of goods that are not covered under the IOSS scheme, you must account for VAT under the normal rules

    If you’re not UK VAT registered
    From 1 July 2021, if you’re a business in Great Britain (England, Wales and Scotland) you do not need to charge VAT on sales of low value goods into Northern Ireland.
     
    Last edited: Jul 21, 2021
    Posted: Jul 21, 2021 By: LHow Member since: Jul 13, 2021
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  11. LHow

    LHow UKBF Newcomer

    17 6
    There's interesting discussion on community dot shopify dot com - search "EU-Import-One-Stop-Shop-IOSS" - on page 28 the rep Dbaca from Crossborderit states that "The IOSS rules are different than the VAT rules and does not require you to collect VAT on shipping. " In a further comment he quotes from EU regs under
    "Definitions and main customs concepts 1.3.1. Intrinsic value
    This definition applies for the implementation of the 150€ threshold both for customs and VAT purposes, regardless of the VAT scheme used.... “intrinsic value" means:
    (a) for commercial goods: 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."

    Can anyone confirm that under the IOSS scheme no VAT is chargeable on shipping goods from UK to EU?
    (I'm aware that if no IOSS or if goods value is over £135 threshold then VAT would be charged in the EU country to the customer on shipping as well as goods value)
     
    Posted: Jul 21, 2021 By: LHow Member since: Jul 13, 2021
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  12. Morning

    Morning UKBF Regular

    80 38
    Yeah, he's wrong. Shipping costs are liable for VAT, but (as Graham Wharton has said) they don't count towards intrinsic value.

    Page 69 of the Explanatory Notes: "To be noted that VAT is applied on the total value of the sale (e.g. the EUR 160 value of the goods and the transport charges."

    This is from a bit explaining how to calculate intrinsic value - 140 euro goods, 20 euro shipping, 32 euro VAT.

    Another reason to avoid Crossborderit.
     
    Posted: Jul 21, 2021 By: Morning Member since: May 14, 2021
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  13. LHow

    LHow UKBF Newcomer

    17 6
    Thank you @Morning for confirming that VAT is chargeable on both goods & shipping whatever the circumstances - IOSS or non-IOSS, I have now found the info on Page 69 of the Explanatory Notes as you quoted. I thought it would be peculiar to treat VAT differently in the 2 scenarios, this situation is complex enough as it is!
    Can anyone who is signed up to Crossborderit point them to the correct info?
     
    Posted: Jul 21, 2021 By: LHow Member since: Jul 13, 2021
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  14. Morning

    Morning UKBF Regular

    80 38
    Pretty sure this is the document that the Crossborderit guy quotes (page 10): https://ec.europa.eu/taxation_customs/system/files/2021-06/guidance_on_import_and_export_of_low_value_consignments_en.pdf

    However, page 19 and 20 detail how to calculate the VAT 'tax base' - the 'intrinsic value' plus the 'transport and insurance costs to the destination'.

    Page 20 also includes a whacking great table of examples which clearly have VAT applied to 'transport fees'.

    So he basically didn't read the whole document.
     
    Posted: Jul 21, 2021 By: Morning Member since: May 14, 2021
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  15. Vikkkkki

    Vikkkkki UKBF Newcomer

    7 0

    Have you solved the issue now?
     
    Posted: Jul 22, 2021 By: Vikkkkki Member since: Jul 22, 2021
  16. schmexit

    schmexit UKBF Contributor

    96 15
    I see, thanks! Some courier websites ask for a mandatory HS code for each line, what should I pit for shipping?
     
    Posted: Jul 22, 2021 By: schmexit Member since: May 7, 2021
  17. JPMiddleton

    JPMiddleton Contributor

    323 64
    What courier is that? Sounds like that courier is as professional as CrossborderIt.

    HS codes are used to define and classify products, and that's it.
     
    Posted: Jul 22, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  18. LHow

    LHow UKBF Newcomer

    17 6
    Thank you for the further information & also for forwarding the info to Crossborderit via the Shopify forum. I will keep an eye on further developments!
     
    Posted: Jul 22, 2021 By: LHow Member since: Jul 13, 2021
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  19. schmexit

    schmexit UKBF Contributor

    96 15
    I thought so.

    Any parcel broker online asks you to declare each product, quantity, price per unit and the HS code. The total must match the declared value. There's no option to enter the shipping cost.
     
    Posted: Jul 23, 2021 By: schmexit Member since: May 7, 2021
  20. whatsoccurring

    whatsoccurring UKBF Newcomer

    22 4
    I see there's a lot of us posting both here and that Shopify thread ;)

    In case you want to put a bit of pressure on HMRC to pull their finger out, there's an IOSS thread on the HMRC forum that's become a bit of a train wreck. They're really not on top of things.

    Can't post the link because I'm 10 posts away from having a high enough standing here to do so.
     
    Posted: Jul 23, 2021 By: whatsoccurring Member since: Jan 4, 2010
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