EU IOSS Signup

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

  1. schmexit

    schmexit UKBF Contributor

    101 17
    Ah, I see! I thought when you said, "removing any discount" that you would disregard it.

    That's great advice re: invoices. How do you ensure orders are under €150? Do you split them manually if they're over, ship them without charging the EU VAT, or do you prevent customers from ordering over €150?
     
    Posted: Jun 7, 2021 By: schmexit Member since: May 7, 2021
    #81
  2. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    My online store handles it for me. (Actually, I wrote a software module for our Magento 2 online store to handle it for me.) As soon as the order goes above 131 GBP (converted from 150 EUR), the checkout automatically removes the EU VAT element (or it will do once we can get signed up)
     
    Posted: Jun 7, 2021 By: Graham Wharton Member since: Apr 20, 2021
    #82
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  3. schmexit

    schmexit UKBF Contributor

    101 17
    That's nifty! Would you consider sharing or selling that module? I think it may be useful to a lot of small UK businesses running Magento 2.
     
    Posted: Jun 7, 2021 By: schmexit Member since: May 7, 2021
    #83
  4. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    github . com / gwharton / autocustomergroup
     
    Posted: Jun 7, 2021 By: Graham Wharton Member since: Apr 20, 2021
    #84
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  5. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    Be aware eBay have released their IOSS number, which you need to include in the electronic customs information that goes with any shipments for eBay sales. It is IM2760000742. This was communicated out to me Yesterday in a global eBay email.

    In addition, looks like the UK Government will be implementing an IOSS portal for UK businesses to register for IOSS.

    www . gov . uk / government / publications / eu-e-commerce-package / eu-vat-e-commerce-package

    states

    A business not established in the EU or Northern Ireland wishing to register for IOSS will be able to do so in any EU member state or in the UK. However, it is not expected that the UK IOSS registration portal will be available for use for the 1 July 2021 launch. Further guidance on this will be made available before 1 July 2021.
     
    Posted: Jun 8, 2021 By: Graham Wharton Member since: Apr 20, 2021
    #85
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  6. romeo b

    romeo b UKBF Contributor

    100 22
    Is this posted anywhere officially? We've had no email, and are a "top rated seller" with a shop for 10 years - also, unsure if this IOSS number somehow relates to you specifically or if it's applicable to *everyone* or maybe even specific people. Maybe they use different numbers for different shops/sellers etc?

    Either way, we've heard nothing yet.

    Where is this information passed on customs? We're only provided the customer information, unless eBay is telling Royal Mail Click & Drop to include that information automatically somehjw - Click/Drop doesn't show anything for an IOSS number yet either. Where is the number passed to? Talk about impossible to navigate.
     
    Posted: Jun 8, 2021 By: romeo b Member since: May 17, 2021
    #86
  7. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    Hadn't considered it would be custom to me, but I dont think it is. It was an email sent out by the eBay Developers Program. See below for a copy. I cant find the info on the developers website, but it is notoriously never updated.

    Dear Developer,

    Your immediate attention is required.

    Notice of EU changes to distance selling rules

    From 1 July 2021, the EU will introduce significant changes to how VAT is collected on imports into the EU, supplies within the EU by non-EU sellers and cross border supplies by EU sellers. eBay is obliged to collect VAT on goods sold through eBay to EU customers in the following circumstances:

    • Goods imported into the EU, with a parcel value of up to EUR 150. Note that there is no longer a VAT exemption for small consignments up to EUR 22.
    • Goods of any value sold by a non-EU seller and shipped from inventory stored in the EU. Sellers may still have EU VAT obligation and should consult their tax advisors for further information.
    • If an order fits either of these criteria, neither sellers nor carriers should collect VAT from buyers in the EU. eBay will collect the VAT from the buyer based on the country of delivery and remit it to the responsible tax authorities.
    Requirement of IOSS Number on EU Imports:
    Where eBay has collected VAT on your shipment to the EU (up to a consignment value of 150€), eBay will provide sellers with eBay’s IOSS number to use as part of the import information. Sellers should only use this number in connection with eBay transactions. Where eBay becomes aware of seller misuse of the eBay IOSS number, eBay will take necessary actions against the seller.

    • Sellers must provide eBay’s IOSS as part of the electronic export pre-notification documentation provided to carriers. If eBay’s IOSS is not provided correctly, then buyers may have to pay VAT again on delivery.
    • Developers should contact their carriers directly to receive carrier specific guidance on how to transfer the eBay IOSS during the electronic customs declaration between seller and carrier.
    eBay’s IOSS Number is: IM2760000742

    Please note: It can only be used for orders purchased from July 1st and beyond..

    API enhancements to support IOSS number: To help ensure imports into the EU have the required IOSS number, eBay will be modifying five (5) APIs to include this reference number starting on July 1st, 2021. The APIs being updated are:

    • Fulfillment API
    • Trading API
      • GetOrders
      • GetOrderTransactions
      • GetItemTransactions
      • GetSellerTransactions
    • Sell Feed API
    Fulfillment API (example):

    eBayReference":{
    "name":"IOSS"
    "value":"ebayTaxNumber"
    }

    Trading API (example):

    <eBayCollectAndRemitTaxes>
    <eBayReference name="IOSS">
    ebayTaxNumber
    </eBayReference>
    </eBayCollectAndRemitTaxes>


    Additional Improvements: We have also updated the above APIs to:

    1. Pass the associated tax reference number for imports into the UK (IOSS), New Zealand (IRD), Australia (ABN), and Norway(VOEC).
    2. The Buyer’s VAT ID will be included as part of the buyer details in cases of tax exemption
    3. We will also pass the IOSS number as part of address street 2 in API version <1211. Shipping address street 2 decoration will not be available for versions 1211 and above. After 1/31/2022, all shipping address street 2 decorations will be removed for all of the API versions. Note: When generating address labels, remove the decoration as it was added to help identify IOSS transactions.
    Sincerely,

    eBay Developers Program
     
    Posted: Jun 8, 2021 By: Graham Wharton Member since: Apr 20, 2021
    #87
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  8. Graham Wharton

    Graham Wharton UKBF Contributor

    50 25
    With regard to your second point, if you go into Trading Names on C&D, you can add the eBay IOSS number in there. (You can also add the eBay Norway VOEC and eBay Australia ABN too). Its the same place you add your EORI and VAT numbers. Infact if you import from both eBay and other marketplaces you can create a Trading Name for each marketplace. Set the correct IOSS number for each marketplace's trading name, then update each integration to use the trading name entry with the correct IOSS number. You will notice that once added, the correct IOSS number will be included on the CN22's on packages to europe that were imported via the eBay integration/eBay Trading Name.
     
    Posted: Jun 8, 2021 By: Graham Wharton Member since: Apr 20, 2021
    #88
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  9. fallschirmjaeger

    fallschirmjaeger UKBF Regular

    195 32
    I'm the same top rated seller for 10+ years and no email regarding this - looks like i will need to get a rubber stamp made up if there is just one IOSS number!
     
    Posted: Jun 8, 2021 By: fallschirmjaeger Member since: Jul 17, 2014
    #89
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  10. romeo b

    romeo b UKBF Contributor

    100 22
    Thanks for your replies - they are most helpful.

    I assume this is the field that's now appeared (hadn't noticed it before) entitled "Pre-registration tax schemes" and selecting "European Union" here would be the number eBay provide me?

    We are a non-VAT reg'd UK biz, sending stuff out to Europe (amongst the rest of the world) - import into UK doesn't come into it whatsoever for us, if that matters.
     
    Posted: Jun 9, 2021 By: romeo b Member since: May 17, 2021
    #90
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  11. romeo b

    romeo b UKBF Contributor

    100 22
    I phoned eBay about 3 weeks ago, was on hold for an hour, nobody had a clue. I even read back the bit from their news article about "Specify the IOSS number eBay provide to you" - which they hadn't, and eBay said they also had no idea, but would email me within 72 hours. That was 3 weeks ago.

    Please reply back if you hear off them!
     
    Posted: Jun 9, 2021 By: romeo b Member since: May 17, 2021
    #91
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  12. romeo b

    romeo b UKBF Contributor

    100 22
    Lastly, which I am sure the answer is probably now "yes", but we sell a fair bit of stuff overseas and recently it's done quite well.

    Ebay state:
    If you are an EU established seller and your business is trading over the legal thresholds defined by your home country or you sell more than EUR 10,000 in goods annually to buyers in different EU countries, you must ensure that you are registered for VAT. Your seller and VAT details must be updated in your eBay account.

    So if we're selling more than €10k (approx £8600) of stuff to overseas (all of Europe), we need to register for VAT in UK too now? Or is this asking you to use the IOSS method? Our overall turnover does not exceed the UK VAT threshold at present. We do not collect , charge or remit VAT at present. Our turnover is below the £85k for all combined UK and Rest of World sales. Hard to decipher what is required given eBay are sorting the VAT side of it all out from their point of view.

    (I'd say it's 70% eBay sales, 20% own website, 10% general sales - and this 100% is all split about 1/3 each to UK, Europe and Rest of World)

    This surely cannot be correct as every business in the UK doing £8600+ of overseas business would need to be UK vat registered. I am sure I read somewhere on the HMRC guidelines they are proposing something for this as to not cause a nightmare for small business registering for VAT.

    from HMRC:

    To ease the administrative burden of businesses having to register in each EU member state where they have customers, there will be a new opt-in online One Stop Shop (OSS) quarterly VAT reporting and payment system. This means that businesses falling in scope of the new rules will no longer be required to VAT register in each of the EU member states of their customers. A business opting to register for OSS will be able to do so once in any EU member state or in the UK, provided that it is VAT registered in the EU member state or is trading with the EU under the Northern Ireland Protocol.

    Once registered for OSS, the business must account for VAT on all its distance sales through that OSS. Businesses exceeding the £8,818 threshold that wish to use the UK’s OSS will be required to register for VAT in the UK if they are not already registered and will require an XI indicator. The requirement to VAT register will apply even if the overall turnover is below the normal UK VAT registration threshold of £85,000.

    HMRC is keen to ensure that VAT will not be due automatically on domestic supplies in these circumstances. Further guidance on this will be made available before 1 July 2021. A UK VAT registration is not required if the supplier registers and accounts for the VAT in each EU member state where the goods are dispatched to.
     
    Last edited: Jun 9, 2021
    Posted: Jun 9, 2021 By: romeo b Member since: May 17, 2021
    #92
  13. romeo b

    romeo b UKBF Contributor

    100 22
    Further to my post above, it appears that this €10k threshold applies to NI businesses now that I have re-read the guidance and also read a plethora of equally confused people's posts. Nothing is easily understandable and eBay are giving generic messages that don't apply to UK sellers.

    So it looks like a UK non-VAT reg'd business can still send to EU as we do now, under the UK VAT Threshold (£85k) as normal without registering for UK VAT. Or else all small business would end up registering for VAT. So that's one thing off my mind.

    So if we use the eBay OSS number (which they've not yet provided), the tax side of things is also sorted out for us there. It's just the duty itself we need to worry about (handling etc).

    One post I saw on an eBay forum said (in response to an equally confused person):

    You are not registered in Northern Ireland and I'm assuming you don't hold stock there. This means you don't need to worry about registering for VAT in the UK nor the EU provided your low value sales to the EU (those not exceeding £135/€150) are only conducted via eBay. The €10,000 threshold for (EU) VAT registration applies to intra-EU sales (including Northern Ireland); not sales into the EU from third countries.

    Items you sell into the EU that exceed the low value threshold will be treated as they are now; i.e. the buyer will still be responsible for paying VAT, duty, handling charges etc. on import.


    I haven't seen one person yet who has it all figured out and we're 3 weeks off the deadline.

    So just all the other stuff to sort out now.. like actually providing this illusive eBay OSS number that they're yet to email me about.

    <sigh>
     
    Posted: Jun 9, 2021 By: romeo b Member since: May 17, 2021
    #93
  14. ADC

    ADC UKBF Contributor

    158 23
    US customers don't mind because they don't pay any import tax unless they buy more than $800. From July the limit in EU wil be zero.
     
    Posted: Jun 9, 2021 By: ADC Member since: Jun 25, 2009
    #94
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  15. Spur Support Services

    Spur Support Services Full Member

    331 68
    The problem is, that the guidance hasn't been published yet.
    My gut feel is there is still a lot of discussion going on between the UK and the EU. Both parties will be trying to keep the process as simple as possible to encourage responsible tax collection.

    The Duty question is only for "Consignments" over €150 (UK £135).
    Similarly Ebay's responsibility for using their OSS will only be for consignments up to the above.
    Therefore, limiting your basket size (including shipping costs, insurance costs etc) for overseas customers to £135 (or €150) on all platforms and websites, may mitigate against this risk.

    If you have Shopify or other direct sale sites, with low overseas activity, I would advise blocking sales to overseas customers until the rules and guidance are finalised (leave overseas sales open on Market Places such as Ebay, Amazon, Etsy, etc) .

    Also ensure that you retain sufficient detail on orders, so that you can identify sales to each country and the EU/NI as a block.
    This may require regular download of detailed order reports into CSV/Excel format, to ensure that you retain a full audit trail.

    It is frustrating that no clear message and guidance is available. I think its still very much a moving target, but the clarity on the online marketplace sales has helped remove a massive amount of the risk.
     
    Posted: Jun 9, 2021 By: Spur Support Services Member since: Aug 21, 2020
    #95
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  16. ADC

    ADC UKBF Contributor

    158 23
    Bit of an update for you, last month i sent the following email to EU direct contact centre:-

    "I wonder if you could help me with a problem? I would like to know if the EU and the UK has a Mutual Assistance Agreement for the recovery of VAT? If you have a look at page 1091 of the trade agreement it seems there is. We are a UK company who wishes to apply for the new IOSS (Import One Stop Shop) and we have been told by the French & Ireland Tax authorities that we can't apply without having a fiscal representative based inside the EU as the UK doesn't have a mutual assistance agreement for the recovery of VAT.

    Are they mistaken? If so, please could you contact them and let them know. If they aren't mistaken please can you tell me what page 1091 of the trade agreement is for?"

    Today I got a reply from them:-

    "The new rules on VAT ecommerce (Directive (EU) 2017/2455 as regards certain value added tax obligations for supplies of services and distance sales of goods) will come into force on 1 July 2021. To make use of the special scheme for distance sales of goods imported from third territories or third countries, traders established in third territories or third countries must appoint an intermediary established in the European Union as the person liable for payment of the VAT under the IOSS.
    Indeed, pursuant to Article 369m of the VAT Directive, there is no need to appoint such an intermediary if the trader is established in a country with which the Union has concluded an agreement on mutual assistance similar in scope to Council Directive 2010/24/EU and Regulation (EU) No 904/2010.

    However, for the full implementation of Article 369 m, the Commission shall establish the list of third countries with which the Union has concluded an agreement on administrative cooperation and recovery assistance, similar in scope to the legislation in place among the Member States. That is why the Commission has proposed a Council Decision with the list of such countries which is currently in the process of adoption. The adoption of the decision is foreseen by the entry into force of the new VAT rules (at the latest by the end of June).
    We will be in a position to provide you with more information after the adoption procedure is finalised."
     
    Posted: Jun 9, 2021 By: ADC Member since: Jun 25, 2009
    #96
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  17. romeo b

    romeo b UKBF Contributor

    100 22
    So, basically, nobody knows, and it's all up in the air still.

    Lots of long words, confusing literature and stuff that's not easy for someone running a business to understand. Most of the stuff I have understood has been written here. I don't have a tax degree. It sounds very much like we're all trying to run small/medium businesses and the advice is just all over the place.

    Basically: headache. That's all they had to say. Headache.
     
    Posted: Jun 9, 2021 By: romeo b Member since: May 17, 2021
    #97
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  18. schmexit

    schmexit UKBF Contributor

    101 17
    That's fantastic, thank you so much! I will check it out!
     
    Posted: Jun 9, 2021 By: schmexit Member since: May 7, 2021
    #98
  19. schmexit

    schmexit UKBF Contributor

    101 17
    THIS! Exactly this.

    When they sent that response to me, I had to email them back and ask what it actually meant.
     
    Posted: Jun 9, 2021 By: schmexit Member since: May 7, 2021
    #99
  20. ADC

    ADC UKBF Contributor

    158 23
    I think it means they are going to decide whether UK companies need an EU representative in a meeting before the end of June.

    Probably depends on whether todays negotiations with the EU about where we can stick our sausage goes well or not :)
     
    Posted: Jun 9, 2021 By: ADC Member since: Jun 25, 2009
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