EU IOSS Signup

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

  1. japancool

    japancool UKBF Legend

    5,170 1,188
    I think you'll find that everyone exporting to the EU has this problem, it's not just the UK.
     
    Posted: Sep 7, 2021 By: japancool Member since: Jul 11, 2013
  2. schmexit

    schmexit UKBF Contributor

    101 17
    Well, we did not have this problem before Brexit. We certainly would not have this problem had we stayed in the free market or if our government had negotiated a good deal for its small businesses.
     
    Posted: Sep 7, 2021 By: schmexit Member since: May 7, 2021
  3. DesignElektronik

    DesignElektronik UKBF Newcomer

    1 0
    Maybe any kind of lubricant will fall foul of the An Post Prohibited Item List, where one line says:
    • Liquids of any kind including water, alcohol, gels, creams, aftershaves and perfumes
    I suspect most lubricants are (or might readily be interpreted) as liquids, if gels or creams are defined as such.
     
    Posted: Sep 9, 2021 By: DesignElektronik Member since: Sep 9, 2021
  4. schmexit

    schmexit UKBF Contributor

    101 17
    https://www.reuters.com/world/europe/exclusive-britain-no-longer-top-10-trade-with-germany-brexit-bites-2021-09-08/

    "Britain is on course to lose its status as one of Germany's top 10 trading partners this year for the first time since 1950, as Brexit-related trade barriers drive firms in Europe's largest economy to look for business elsewhere.

    For many small British firms, Brexit meant losing access to their most important export market... It's like shooting yourself in the foot. And this explains why German imports from Britain are in free-fall now."
     
    Posted: Sep 9, 2021 By: schmexit Member since: May 7, 2021
  5. LHow

    LHow UKBF Newcomer

    19 8
    I had heard that Germany would not be ready to handle IOSS until October at the earliest?

    Also, I found the following at https tamebay com slash 2021 slash 07 slash ioss-ddp-dap-sos-what-you-need-to-know.html

    3. DDP – Delivered Duty Paid

    This is very similar to shipping DTP, in that the seller pays all Duties & Taxes so the customer doesn’t have to. However, there is a significant difference – DDP requires the sender to be the Importer of Record, which is the person officially responsible for making sure delivery is compliant with all legal regulations in the destination country. However, the Importer of Record also often needs to be tax-registered in the destination country. Some carriers have created their own services whereby the receiver can be the Importer of Record, however this is not a standardised service offered by all carriers.

    What’s the catch?
    If you do not have an intermediary in the destination country, your parcels may be rejected at the border. Germany, for example, is especially strict in enforcing this and will not clear any parcels sent DDP if the sender is not tax-registered in Germany. Often, sellers make the mistake of thinking they can send parcels DDP to account for Duties & Taxes but find they cannot be cleared at Customs because they are not tax-registered in the country.

    Does anyone know if the Royal Mail is able to be "the Importer of Record" ? What about other carriers?
     
    Posted: Sep 10, 2021 By: LHow Member since: Jul 13, 2021
    • Thanks Thanks x 1
  6. japancool

    japancool UKBF Legend

    5,170 1,188
    I suggest you look beyond the EU for new markets.
     
    Posted: Sep 10, 2021 By: japancool Member since: Jul 11, 2013
    • Thanks Thanks x 1
  7. schmexit

    schmexit UKBF Contributor

    101 17
    What the? So does this mean that even if one succeeds in registering for IOSS, there will be problems if you're not VAT registered in the destination country? That does not make any sense.
     
    Posted: Sep 10, 2021 By: schmexit Member since: May 7, 2021
  8. LHow

    LHow UKBF Newcomer

    19 8
    I have no idea, sorry. It sounded like it could perhaps be one of the reasons why @NWH had so many German parcels being returned (either that or that Germany was not ready for IOSS). I found the article on Tamebay while trying to figure out the IOSS situation with DAP & DPP. I thought "What the?" too, which is why I was asking here if anyone knew if the Royal Mail would be classed as "the Importer of Record" because that would solve the issue if you ship via Royal Mail .
     
    Posted: Sep 10, 2021 By: LHow Member since: Jul 13, 2021
  9. schmexit

    schmexit UKBF Contributor

    101 17
    What a mess. What's the UK government doing to help us small businesses navigate this?
     
    Posted: Sep 10, 2021 By: schmexit Member since: May 7, 2021
  10. Morning

    Morning UKBF Regular

    81 40
    @schmexit: That quote has nothing to do with the IOSS. https://tamebay.com/2021/07/ioss-ddp-dap-sos-what-you-need-to-know.html

    I'd read that too, on Avalara or somewhere like that? I *think* it refers to the use of the H7 customs declaration, around which the IOSS was designed. But IOSS packages can still be declared using other customs declaration methods. Germany is definitely able to accept IOSS consignments.

    Please note, I'm talking about the customs declarations made by postal services, not something senders need to worry about.
     
    Posted: Sep 10, 2021 By: Morning Member since: May 14, 2021
    • Thanks Thanks x 1
  11. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    According to my account manager, Royal Mail DDP is now live for the following countries only.

    Germany, France, Netherlands, Malta
     
    Posted: Sep 10, 2021 By: Graham Wharton Member since: Apr 20, 2021
    • Thanks Thanks x 1
  12. LHow

    LHow UKBF Newcomer

    19 8
    The Gov keep saying its down to the EU! i.e. no help at all.
     
    Posted: Sep 10, 2021 By: LHow Member since: Jul 13, 2021
    • Thanks Thanks x 1
  13. schmexit

    schmexit UKBF Contributor

    101 17
    It's not down to the EU. Our government has not negotiated a mutual assistance VAT deal that would allow us to register for IOSS in the EU.
     
    Posted: Sep 12, 2021 By: schmexit Member since: May 7, 2021
  14. NWH

    NWH UKBF Newcomer

    23 9
    While I continue my search to find IOSS support for my small start-up company, I came across the name Desucla. They can be found easily via a web search browser. They are UK based and appear to be a dream answer to our needs for VAT representation in the EU and further afield. Before I make contact to find out more about them and importantly, the cost! Has anyone heard of this entity please?

    They state:
    Desucla is a UK headquartered company that was founded by tax and technology entrepreneurs who wanted to disrupt the antiquated world of fiscal representation and cross-border VAT payments.

    We built proprietary technology and risk management systems to standardize fiscal representation across 35 key markets, minimizing the need for bank guarantees or bank deposits and leveraging our online platform to enable self-service and keep costs to a minimum. In addition, we built an integrated VAT payment portal to save our clients time and money when making their VAT payments.
     
    Posted: Sep 22, 2021 By: NWH Member since: Jun 29, 2021
  15. LHow

    LHow UKBF Newcomer

    19 8
    They are a new name to me too. I had a look & via the Desucla site, go to "services" & then "ioss" & you will find pricing. They have different pricing tiers from uppermost Tier 1 at 20,000+ shipments per year.
    down to the lowest volume price tier at Tier 5.
    Tier 5 information :
    No. of IOSS shipments per annum 0 – 2,499
    One-off Registration Fee £12
    Annual Up-front Fee £475
    Monthly VAT payment Fee £5

    Cheaper than something like Avalara, but more expensive than Crossborderit (£19.99 per month) for up to around 24 or 25 shipments per month at, I believe, roughly £1 per shipment.
    (£19.99 + £24 =£43.99 or £19.99 + £25 =£44.99 per month)
    For Desucla £39.58 fees + £5 for VAT Fee = £44.58 per month.

    How are other people getting on with Crossborderit?
     
    Posted: Sep 22, 2021 By: LHow Member since: Jul 13, 2021
    • Thanks Thanks x 1
  16. Morning

    Morning UKBF Regular

    81 40
    I’d contacted Desucla a while back, before they’d confirmed their Intermediary costs. They sent me that info later, but it’s was a bit too much for me, not knowing how many EU sales I’d get even with VAT collection at checkout. However, they phoned a few weeks back and mentioned they’d have another, cheaper tier coming in October. Hopefully that might be comparable to CBit in cost, and a hopefully a lot more competent.
     
    Posted: Sep 22, 2021 By: Morning Member since: May 14, 2021
    • Thanks Thanks x 2
  17. LHow

    LHow UKBF Newcomer

    19 8
    I would be interested to hear about the cheaper tier, as & when it happens.
     
    Posted: Sep 22, 2021 By: LHow Member since: Jul 13, 2021
    • Thanks Thanks x 1
  18. Melody Lewis

    Melody Lewis UKBF Newcomer

    4 0
    Hi all. Up until now, we have not considered signing up for IOSS due to the huge costs. Our European sales outside Amazon are low. However, we have had huge issues and have not been able to get any samples through to Europe so have decided to go ahead. I have noticed that since the start of this thread, prices have come down hugely - I am seeing sign-ups for £100 and ongoing charges of £40-50 per month. Does anyone have any recommendations please for intermediaries - both cost and service? Thanks
     
    Posted: Sep 22, 2021 By: Melody Lewis Member since: Jul 14, 2021
  19. schmexit

    schmexit UKBF Contributor

    101 17
    Taxamo seems to be way cheaper than any of these options for small to medium-sized online businesses at £2/parcel and no upfront or monthly costs.
     
    Posted: Sep 22, 2021 By: schmexit Member since: May 7, 2021
    • Thanks Thanks x 2
  20. TKJ-London

    TKJ-London UKBF Newcomer

    7 6
    Have you tried using Taxamo? The problem for me is you need to integrate their software into your shopping basket, and there isn't currently an integration plugin for Woocommerce, which is what I use. Thanks.
     
    Posted: Sep 23, 2021 By: TKJ-London Member since: May 20, 2021
    • Thanks Thanks x 2