EU IOSS Signup

[romeo b]

Surely they can track which consignment matches which IOSS? They've had all this time to figure this out? It would be the best way of preventing fraud. Essentially just a digital check of "IOSS matches the parcel tracking/serial no". Simples <shrug>

What is actually to stop me dispatching everything from my website using eBay's IOSS number? Who will ever know if that's the case of items aren't cross referenced? Something must be in place?

If they are embedding the IOSS within the QR code somehow, why have it on the form if it's scanned by machine?

If it's not scanned by machine, it needs to be visible to a human eye, therefore on the CN22?

But regardless, there is a box on the CN22 for the IOSS to live on. And from what I am seeing, it's not really secret if it's being added to people's parcels and visible to the eye. They surely can't introduce these secretive numbers that permit post to be sent tax-paid and have no method of digitally cross-referencing it against a parcel number.

Minefield.

 

[Morning]

It is scanned by machines. IOSS numbers are sent in 'electronic data' and it's all done digitally. It should not be visible on the CN22.

 

[romeo b]

Sadly this isn't what's happening and there is very little consistency, so just as much confusion. C+D support aren't answering, Account manager isn't answering, phone line is 40 minute wait and then goes off.. the usual really..

 

[DefinitelyMaybeUK]

I was told I can also use the regular "standard" priority international airmail (OSA) services

This is at odds with the RM FAQs:
https://www.royalmail.com/business/international/guide/delivered-duties-paid/ioss-faqs
so don't know if that's why you're not seeing the 'IOSS logo' on your label? The gist of the FAQ is:
Can I use IOSS on legacy products?
No.
Am I restricted to which RM products/codes I can use IOSS with?
Yes
i.e. Parcels: DE4 DW1 MTE MTF MP7 MP8 MP9 MPO and Large Letters: DG4 MTG MTK MTO

?

 

[Morning]

@romeo b: It sure is a bit of a mess.

But one thing we can be sure of is that the IOSS number should not be on the CN22 label. That's confirmed in the Royal Mail page I linked to earlier.

That it is appearing on the CN22 for some folk suggests there are issues with how the CN22 is being populated. And as I said, Ebay including the number in the address field sounds like a hangover from Norway VIES, though that's just a theory.

 

[romeo b]

This is at odds with the RM FAQs:
https://www.royalmail.com/business/international/guide/delivered-duties-paid/ioss-faqs
so don't know if that's why you're not seeing the 'IOSS logo' on your label? The gist of the FAQ is:
Can I use IOSS on legacy products?
No.
Am I restricted to which RM products/codes I can use IOSS with?
Yes
i.e. Parcels: DE4 DW1 MTE MTF MP7 MP8 MP9 MPO and Large Letters: DG4 MTG MTK MTO

?

I've seen that but I wonder if that is active information as DDP isn't live yet? Also, I wonder if that relates to "using your own IOSS" rather than the "eBay sort it all out for you" method.

I am unable to get any IOSS no to be placed on any item regardless of what I do or which platform I use, or which service I use. So maybe this is the intended behaviour (but still begs the question: why have a space for it on the CN22?)

@romeo b: It sure is a bit of a mess.

But one thing we can be sure of is that the IOSS number should not be on the CN22 label. That's confirmed in the Royal Mail page I linked to earlier.

That it is appearing on the CN22 for some folk suggests there are issues with how the CN22 is being populated. And as I said, Ebay including the number in the address field sounds like a hangover from Norway VIES, though that's just a theory.

Hopefully - as said, waiting on my account manager to reply. I'm just baffled why the space for one exists on the CN22 and it doesn't get populated, even with a "IOSS / TAX PAID" equivalent logo or something like you'd said. If it's not used, phase it out / remove it. Put the IOSS logo by all means but at least make it consistent behaviour for all people.

 

[Morning]

The 'Pre reg tax scheme' box has been there for a while and is used for things other than IOSS numbers. I *think* it might be used for the Norway VIES number and for Aus/NZ GST numbers, but I'm not sure. Those are the things that can be entered in the same place in C&D 'Trading Names' as the IOSS. Others can comment on that.

 

[romeo b]

Yes, they are. We've dispatched to Australia many times before but it adds an "ABN CODE PAID ###" into the address field (eBay certainly), and the PRTN is left empty.

The thing concerning me as well is the Spain order without the tax paid from today. How is it an option to even buy without paying the tax? Is it not applying to Spain yet?

Item is a £6 item with £6 shipping, so very low value.

But tax is tax, and should be showing. Why not?

 

[ADC]

So you don't see a problem if unique IOSS numbers are on CN22 labels? It doesn't matter for marketplace IOSS numbers, but it sure does for other IOSS numbers!

Yes but the whole system is stupid anyway. What is going to stop someone using an IOSS number from a marketplace? Can't see customs having systems that are linked live to every marketplace to check order numbers and what tax has been paid.

 

[Morning]

@ADC: I'm not going to get into whether it's stupid or not. It is what it is. In the medium term, the plan is to have a 'direct exchange of information' between marketplaces/websites and customs authorities. In the short term, they suggest marketplaces negotiate with postal operators to put something in place and to put sanctions on sellers who misuse the number. There's something about this on page 77 of the explanatory notes.

 

[romeo b]

Actually I think it's easy to confirm, it's just parcel no and associated IOSS number isn't it to clarify the match? When a parcel label is generated or manifested into the "postal system" it should be databased in basic form like "sender ID:live parcel number:ioss number" so that would stop fraud from the off, wouldn't it?

I couldn't send my parcel using my ID but someone elses IOSS. etc. And parcel number would need to match my ID thereafter. Argh god knows.

I am sure there's more to it but they must have a method of checking things. This is 2021, everything is monitored. Surely.

 

[Morning]

Does it matter? Are you going to indulge in VAT fraud?

Just don't put your unique IOSS number visible on a label (should you get one at some point) and you'll be grand.

 

[ADC]

Actually I think it's easy to confirm, it's just parcel no and associated IOSS number isn't it to clarify the match? When a parcel label is generated or manifested into the "postal system" it should be databased in basic form like "sender ID:live parcel number:ioss number" so that would stop fraud from the off, wouldn't it?

I couldn't send my parcel using my ID but someone elses IOSS. etc. And parcel number would need to match my ID thereafter. Argh god knows.

I am sure there's more to it but they must have a method of checking things. This is 2021, everything is monitored. Surely.

Yes but a marketplace IOSS goes in the same box, how can Royal Mail tell the difference between your own personal IOSS number and a marketplace IOSS number. There isn't a special place on click and drop to enter your own personal IOSS number that can only be used with your RM account.

 

[paulears]

When we talk about VAT fraud - I have lost the plot. UK VAT or the VAT system in the destination county?

Excuse me for being so thick and stupid, but on my VAT documents, if I sell to a destination abroad, (which I don't do) no UK VAT is charged, and the problem without IOSS is that the customer in the destination country has to pay the VAT/duty applicable before delivery. Surely to them, the price works out very close to a UK customer charged VAT? Handling charges no doubt, but what am I missing here? Can somebody explain in really simple terms - I am lost.

 

[japancool]

Excuse me for being so thick and stupid, but on my VAT documents, if I sell to a destination abroad, (which I don't do) no UK VAT is charged, and the problem without IOSS is that the customer in the destination country has to pay the VAT/duty applicable before delivery. Surely to them, the price works out very close to a UK customer charged VAT? Handling charges no doubt, but what am I missing here? Can somebody explain in really simple terms - I am lost.

Depends on the value of your items. The handling charge is upwards of 10 euros, so if your item is worth 20 euros, add 4 euro VAT and 10 euro handling, that increases the cost to the customer significantly compared to your European competitors.

If the item is 200 euros, it's less of an issue.

 

[DontAsk]

Handling charges no doubt, but what am I missing here?

Nothing

 

[paulears]

I must admit to reading about it, deciding it wouldn't really interfere with my sales, and deciding to ignore it! No doubt at some point it will bite me. I got an EORI number when first announced and one supplier has actually asked for it, and none of the others ever have.

 

[Sco]

When we talk about VAT fraud - I have lost the plot. UK VAT or the VAT system in the destination county?

Excuse me for being so thick and stupid, but on my VAT documents, if I sell to a destination abroad, (which I don't do) no UK VAT is charged, and the problem without IOSS is that the customer in the destination country has to pay the VAT/duty applicable before delivery. Surely to them, the price works out very close to a UK customer charged VAT? Handling charges no doubt, but what am I missing here? Can somebody explain in really simple terms - I am lost.

Best to use an example - a Belgian friend of mine showed me the bill he got for a £20 package from the UK the day before yesterday, he was trying to get a last package from UK before the change but was too late. He was charged: €24 handling fee, €10.72 tax, total €34.72, on top of a £20 package. Sure, he didn't have to pay UK VAT, but that would've worked out to £4, not €34.72. Nowhere close.

I queried the €10.72 because that seems way above the 21% Belgium VAT, but it appears that the €24 handling fee is BEFORE tax, so the VAT charged is (£20 item value + €24 handling fee) x 21%, which explains the €10.72.

For customers, especially those who buy lower value goods, that's far too much on top, they won't buy again. If they're understanding, they won't send angry emails to the shop, but they would at least definitely tell their friends to not buy either.

And it's about perception - when people buy something, they expect what they've paid at the shop to be all they need to pay. Nobody likes having bills slapped on top even if they know it's not the shop's fault. Plus it means customs or the postal service hold on to their package until they pay up, then release it, it adds to the delivery time, and nobody likes that either.

If IOSS works the way it's supposed to work (lol), that'd get round all those problems because if my friend made another order now, he would only pay £20 + 21% Belgian VAT at the shop and that would be the end of it.

 

[Ozzy]

I asked Royal Mail to have a look at this thread and offer some input. I’m no expert and have no value to add as it’s outside my area of knowledge; they sent me this.

https://www.royalmail.com/business/international/guide/delivered-duties-paid-ioss

 

[TKJ-London]

Hello all,

Has anyone here done a Taxamo Assure API integration with a Woocommerce website? I'm seeking advice on how to go about it, so I can use it for Royal Mail orders. I contacted Taxamo for details and this was their response:

"We expect that Woocommerce will provide an update at some point that works with Assure, but I am not aware of a commitment from them yet. At this point your only option to use our service is to develop an integration against our API."

I don't expect it will be a priority for Woocommerce to develop a plugin..

Thanks for any help you can offer!

 

[romeo b]

I asked Royal Mail to have a look at this thread and offer some input. I’m no expert and have no value to add as it’s outside my area of knowledge; they sent me this.

https://www.royalmail.com/business/international/guide/delivered-duties-paid-ioss

so basically they just linked to something that’s already linked on here with the confusion relating to it unanswered - ie they haven’t even read this thread, they’re just avoiding talk about it

Hello all,

Has anyone here done a Taxamo Assure API integration with a Woocommerce website? I'm seeking advice on how to go about it, so I can use it for Royal Mail orders. I contacted Taxamo for details and this was their response:

"We expect that Woocommerce will provide an update at some point that works with Assure, but I am not aware of a commitment from them yet. At this point your only option to use our service is to develop an integration against our API."

I don't expect it will be a priority for Woocommerce to develop a plugin..

Thanks for any help you can offer!

I use woocommerce too, but aiming to integrate just calculating the country VAT and then dispatch using RM DDP services when they come live, at a 50p cost per item (as linked in the post above).

 

[RBH]

"I use woocommerce too, but aiming to integrate just calculating the country VAT and then dispatch using RM DDP services when they come live, at a 50p cost per item (as linked in the post above)."
I can't see any reference to a 50p charge. In the notes, however, you will see it will not be cost effective for low value items. This may be the surcharge, but also force use of high cost postal options. If, say, you now use International Standard at £3.00, you may be forced to use a £10 service plus surcharge and VAT.

Taxamo Integrations. You need to spend money on a web developer if you cant do it yourself then add £2 a pop for every transaction. Add that to VAT and an affordable low value item suddenly becomes very costly to the end consumer.

I fail to see why the UK IOSS portal and Royal Mail PDDP could not be up and running on July 1st, unless by design. Sellers who, like myself, haven't simply suspended sales to the EU, are forced to channel their sales through corporate entities, be it Amazon or eBay, Deloitte or Taxamo. And would Deloitte and others bother to create new systems that will be redundant when IOSS registration in the UK goes online, if they did not know in advance that it would be significantly delayed or never arrive? Deloitte and other corporations lobby governments and offer "free" services (Guardian) to political parties, for kickbacks and favours.

All this, which affects thousands of retailers, is taking place within a complete media blackout. I'm very worried that unless sellers kick up a loud and visible fuss, small scalers are just going to be made unviable.

 

[schmexit]

Saw this in the Tamebay newsletter:

https://www.spring-gds.com/uk/help-...registration-mandatory-for-UK-businesses.html

"This week, the European Commission decided that all non-EU businesses that sell goods to the EU, with the exception of Norway, will need to register with an intermediary who can help them manage their VAT in the European Union. This means that UK businesses who sell to the EU need to get ready for the upcoming changes now."

I know these guys are trying to sell a service but this does not sound good.

 

[romeo b]

"I can't see any reference to a 50p charge. In the notes, however, you will see it will not be cost effective for low value items. This may be the surcharge, but also force use of high cost postal options. If, say, you now use International Standard at £3.00, you may be forced to use a £10 service plus surcharge and VAT.

If you scroll down to the bottom, click "Fees", it says "For PDDP there will be a 50p per item handling fee payable alongside the VAT and duty we charge back to you."

But yes, it will need to be added onto the cost of postage (or absorbed by you), and on a low value item it's frustrating.

I agree something needs to be done for low value items too, it's just ridiculous to try to send using a PDDP service of something worth £10. I am actively harassing RM for some answers but not getting a single reply.

Saw this in the Tamebay newsletter:

https://www.spring-gds.com/uk/help-...registration-mandatory-for-UK-businesses.html

"This week, the European Commission decided that all non-EU businesses that sell goods to the EU, with the exception of Norway, will need to register with an intermediary who can help them manage their VAT in the European Union. This means that UK businesses who sell to the EU need to get ready for the upcoming changes now."

I know these guys are trying to sell a service but this does not sound good.

This is from a few weeks ago and I suspect just a 'harsher take' repost on what we already know. It sounds very much like they are just pushing the narrative of asking you to sign up to their service.

Plenty of businesses use marketplaces who are the IOSS handlers and I will continue to try to do so until an affordable UK solution comes up. HMRC will no doubt introduce something very soon. I can't see them wanting overseas trade to drop off a cliff (although you'd think otherwise given the poor information and confusion so far)

 

[Morning]

Yeah the list was published on the 10th. Can't find it again as I can't remember what I googled to somehow find it in the EUR-Lex vault. It's a simple as that Norway's VAT agreement with the EU matches the VAT agreements between EU states, and no other agreement does.

Has anyone had any luck writing to their MP? Mine has written to Liz Truss on the specific point of if and when the UK will have a VAT agreement with the EU 'of suitable scope' for direct IOSS registration, which should give her less wiggle room to bullshit an answer. But I'm sure she'll find a way. No reply yet, obvs.

It's very 'this government' to potentially have signed a VAT agreement that doesn't allow UK businesses direct access, for the sake of having a higher threshold for VAT recovery assistance. HMRC are glad I'm sure, as I believe they were rather slack with their assistance to other EU states when we were still in the EU. Maybe that's why the EU have played hardball, despite the (weaker) UK-EU VAT agreement.

 

[schmexit]

Yeah the list was published on the 10th. Can't find it again as I can't remember what I googled to somehow find it in the EUR-Lex vault. It's a simple as that Norway's VAT agreement with the EU matches the VAT agreements between EU states, and no other agreement does.

Has anyone had any luck writing to their MP? Mine has written to Liz Truss on the specific point of if and when the UK will have a VAT agreement with the EU 'of suitable scope' for direct IOSS registration, which should give her less wiggle room to ******** an answer. But I'm sure she'll find a way. No reply yet, obvs.

It's very 'this government' to potentially have signed a VAT agreement that doesn't allow UK businesses direct access, for the sake of having a higher threshold for VAT recovery assistance. HMRC are glad I'm sure, as I believe they were rather slack with their assistance to other EU states when we were still in the EU. Maybe that's why the EU have played hardball, despite the (weaker) UK-EU VAT agreement.

I have spoken to my MP. HM Treasury responded to her, but the letter was so generic, without ANY real answers or guidance on the IOSS/financial rep/VAT agreement issues I asked about.

"The management of EU import procedures is the responsibility of the customs and tax
authorities of the Member States. When exporting goods to the EU it is important that UK
businesses confirm the import processes and any conditions or procedures that may apply
in the particular EU Member State. Information can be found at
https://ec.europa.eu/taxation_customs/home_en."

Unbelievable.

 

[RBH]

If you scroll down to the bottom, click "Fees", it says "For PDDP there will be a 50p per item handling fee payable alongside the VAT and duty we charge back to you."

But yes, it will need to be added onto the cost of postage (or absorbed by you), and on a low value item it's frustrating.

I agree something needs to be done for low value items too, it's just ridiculous to try to send using a PDDP service of something worth £10. I am actively harassing RM for some answers but not getting a single reply.

Thanks for that, nice find! If that 50p could be tagged to a low cost postal option, it would be a work around until the local IOSS portal is active.

 

[schmexit]

Thinking of using eBay to sell our items to the EU for now, instead of waiting for answers from HMRC and the IOSS portal.

How does it work when listing items on eBay now?

Do they take care of VAT calculations/collections/returns for each EU country, and you just use their IOSS number?

How are the fees calculated?

Anything else to think about?

Thank you!

 

[RBH]

Thinking of using eBay to sell our items to the EU for now, instead of waiting for answers from HMRC and the IOSS portal.

How does it work when listing items on eBay now?

Do they take care of VAT calculations/collections/returns for each EU country, and you just use their IOSS number?

How are the fees calculated?

Anything else to think about?

Thank you!

I sell on eBay and for years have used it to find customers and draw them back to my own site. We will be able to use their IOSS number but they charge about 15% to use their platform, possibly more including currency conversions.

If you enroll on their global shipping program, which they encourage, they will offer super-expensive but fully tracked postal options to your customers. Fine for expensive items, less so for cheap. If you offer your own postal options, 99% of the time it works fine but there are scammers out there who make life difficult with claims. ebay will refund them out of your bank account before the postal service has investigated a claim and reimbursed you.

 

[romeo b]

Yes, eBay is good, but can be frustrating - with the returns/refunds side of things.

Things that bug me:

- Buyer opens claim, doesn't reply to your questions (usually "is your address supplied correct?") within the dispute, escalates to eBay and they just refund the buyer.

- Buyer opens claim in form of 'payment reversal' on the managed payments platform, way outside of the timeframe for normal dispute. I had this and got charged an additional £20 fee on top of the original £32 order or something for reversal fee.

- Buyer wishes to return items, eBay reverse payment and hold it from you. But I've had numerous things where buyer hasn't sent it back and request stays open for months, and you have to get eBay to intervene to manually close it.

A buyer yesterday messaged me saying an item hasn't arrived - I checked the date, 9th February sale date. I mean, nearly 6 months, and I'm supposed to be able to act on this now?

We've always tried to draw people from eBay back to our website but with this VAT change etc it's literally the opposite now.

Side note: We have eBay sales from the last couple of days and EU countries bar Spain are showing as VAT collected. The Spain orders just show how they used to show - UK price plus UK postage, no VAT. Anyone got this - any ideas? If I send these items they'll be plus VAT/Duty, surely? Doesn't this defeat the purpose of eBay doing the whole IOSS handling if they don't collect it on certain orders, or it doesn't apply maybe? (Who knows?)

Still wary of dispatching anyway, RM haven't answered me re the IOSS showing on the CN22 anywhere, which some say shouldn't, others say it shows on their Pre Reg Tax Scheme field. Mind boggling. Am I just assuming anything in eBay low value can be dispatched via Click+Drop RM Standard International and within the data somewhere, someone know's it's VAT paid? This has become a complete frustration.

 

[RBH]

"The management of EU import procedures is the responsibility of the customs and tax
authorities of the Member States. When exporting goods to the EU it is important that UK
businesses confirm the import processes and any conditions or procedures that may apply
in the particular EU Member State. Information can be found at"

Unbelievable.

I could have said all that in two words, but probably can't post them here.

 

[WWALLACE]

If you aren't ready for IOSS before 1 July, then presumably you can only send DAP or sell via Amazon/Ebay which may not be an option. And who knows when the UK government etc. will eventually produce a way to go direct with IOSS. Given their track record, could be a long time.

On that basis, I have over the last few weeks contacted 17 different companies offering an IOSS intermediary service including the obvious ones like Avalara/Avask as well as smaller companies in the EU. Some did not respond. Several told me things that I know are incorrect which did not inspire confidence. 3 weeks ago, most could not give a price but now many have got their act together. Highest quote is 4800 euros per year including registration/filing (KPMG). Lowest quote so far is: Registration + 12 months of IOSS returns: 1500 Euros.

Now I'm in a dilemma, if we don't start the process now, we aren't going to be ready for 1 July. But if we do sign up now and then discover just before 1 July that we could have gone direct or the deadline is pushed back, we will have wasted 1500 Euros. Joy.

 

[Enz.87]

Hi guys I just would like to share this article and check what you think about this "workaround" gonedigital. net/2021/07/01/ managing-eu-sales-post-brexit/

 

[WWALLACE]

Hi JRFM - We are in the same position. We have clients who require this service immediately and they quite rightly want the smooth shipping experience IOSS should offer.
We are presently employing DHL/DDP status in order to achieve direct and uninterrupted shipping which we cannot maintain financially. It is not full proof and various EU destination countries are ignoring the DDP application.
We are also presently 'going around the houses' costing intermediate charges and I was impressed by the €1500 per annum quotation - although I would rather not pay this we can't get near this cost!!
Would you be prepared to divulge who is making this offer??

 

[RBH]

There's no point appealing to it to see sense, the government and the corporations it answers to know what they're doing, and, as above this is their answer to small business-

""The management of EU import procedures is the responsibility of the customs and tax
authorities of the Member States. When exporting goods to the EU it is important that UK
businesses confirm the import processes and any conditions or procedures that may apply
in the particular EU Member State. Information can be found at link""

They want to channel a cut of small business revenues into the big corporations and put those that can't pay out of business. The trouble with business is that it individualises each proprietor but I propose an export strike. Join together, stop exporting and publicise the campaign. See how much revenue that generates them.

 

[Morning]

Latest call to Royal Mail Click and Drop and they've assured me that if an IOSS number is in the box in the Trading Names section, it's definitely being transmitted in the electronic data. The mention of IOSS logos on labels only refers to certain OBA C&D service codes, but that's being worked on and I think the logo should appear on all service codes in the near future.

But they were very clear that IOSS numbers are being included in the data, which is the main thing.

 

[DefinitelyMaybeUK]

Hi guys I just would like to share this article

https://gonedigital.net/2021/07/01/managing-eu-sales-post-brexit/
Thanks for that - a novel approach, potentially useful links for uses other than IOSS and food for thought

 

[romeo b]

Latest call to Royal Mail Click and Drop and they've assured me that if an IOSS number is in the box in the Trading Names section, it's definitely being transmitted in the electronic data. The mention of IOSS logos on labels only refers to certain OBA C&D service codes, but that's being worked on and I think the logo should appear on all service codes in the near future.

But they were very clear that IOSS numbers are being included in the data, which is the main thing.

Here's hoping it's transmitted from eBay when the eBay trading name section doesn't have the IOSS in there - they told us we don't need to do anything (any manual adding within your eBay integration). And given eBay is sometimes with tax and sometimes without, I'm guessing this is correct because otherwise IOSS would be shown on things that don't require it.

 

[whatsoccurring]

If you scroll down to the bottom, click "Fees", it says "For PDDP there will be a 50p per item handling fee payable alongside the VAT and duty we charge back to you."

But yes, it will need to be added onto the cost of postage (or absorbed by you), and on a low value item it's frustrating.

I agree something needs to be done for low value items too, it's just ridiculous to try to send using a PDDP service of something worth £10. I am actively harassing RM for some answers but not getting a single reply.

Thanks for this info. I've spotted a potential snag I'd like to run by yourself and others, if I may, to ensure I haven't misunderstood.

At the bottom of that page, in the "How to sort and present your mail" section, it says:

• "No segregation required
• You can send items of Large Letter and Parcel Format dimensions (see format specifications below). These will all be processed and charged as a single piece Parcel, irrespective of format.

..The above appears to apply to both PDDP and IOSS.

This would suggest to me (a business that sends 90% of orders to the EU using the large letter format) that this 50p fee is incredibly misleading and the real cost is far higher?

 

[romeo b]

Thanks for this info. I've spotted a potential snag I'd like to run by yourself and others, if I may, to ensure I haven't misunderstood.

At the bottom of that page, in the "How to sort and present your mail" section, it says:


..The above appears to apply to both PDDP and IOSS.

This would suggest to me (a business that sends 90% of orders to the EU using the large letter format) that this 50p fee is incredibly misleading and the real cost is far higher?

I don't know your full circumstance, but we send a lot of items to Europe, via untracked "letter" and I'd say 90% of it we have no problem arriving, lost, or missing items. It can be delayed but we rarely have to refund missing items.

With PDDP, I believe they will only treat items as "Large Letter" or "Parcel", so there will be no PDDP "Letter" style, which for me is a disaster. I hope they clarify and introduce this, but otherwise sending low value items without the expense of tracked post is going to be tricky/impossible.

I envisaged it to work like this:

1) Buyer checks out on our own website, buyer pay the VAT
2) We dispatch item using a "PDDP" letter (or large letter) and Royal Mail bill us the VAT back, plus 50p charge
3) We can just about live with this and absorb the fee under the assumption we're able to still use a PDDP service which is in line with "International Priority" aka standard overseas airmail which takes about 5-7 days.

If they are going to cost everything at tracked prices plus the 50p fee, so in the region of £10+, it makes it very difficult. The items we send can be £7-8 worth, plus we charge about £5-6 for postage.

PDDP needs to be similar price-range to their current range (Standard letter/large letter, Tracked/Signed/T+S) but with the added fee or whatever. If it's considerably dearer, or they remove the low cost services for PDDP, it's going to be a problem. After all, via eBay, you can ship using their IOSS using a "Standard" service, so why should PDDP be any different, bar a fair charge for the fee?

I don't know if they are saying the basic "letter" format isn't expensive enough (for them) to warrant the messing and PDDP service on it, but I'm hoping this isn't the case.

I'm keeping my eye on this one and just trying to pre-warn buyers on our website, or get them to buy from eBay instead.

If we were IOSS registered, we could obviously just dispatch using the normal airmail service (as we do now with eBay) and the tax is paid and IOSS verifies this.

But PDDP is still 'undergoing testing' and not live, so no idea what to expect really.