IOSS | UK business selling on Shopify

Discussion in 'International Business' started by GuyMor, Jul 8, 2021.

  1. GuyMor

    GuyMor Contributor

    129 5
    Hi all,

    I have read (most of) the other IOSS thread (17 pages of it!) but I would still like to know the following:

    Well worldwide, the average order value is £80. We use an aggregator to send our parcels overseas. They just use a standard international mail service (currently dutch post).

    I told them we'd like to start sending DDP and they said we need to have an IOSS number. We can't have an IOSS number as we're not established in the EU.

    Where do I go from here?
     
    Posted: Jul 8, 2021 By: GuyMor Member since: Mar 23, 2016
    #1
  2. romeo b

    romeo b UKBF Contributor

    98 21
    You could wait until Royal Mail's PDDP Service is launched. Essentially it'll charge you 50p per item, then charge you the VAT back. So your customer pays you including their country's VAT, you dispatch using RM, and they charge you the VAT back, plus 50p (and the actual fee for the posting, obviously).

    From what I read if you have a business account with them it will be very competitive.
     
    Posted: Jul 8, 2021 By: romeo b Member since: May 17, 2021
    #2
  3. GuyMor

    GuyMor Contributor

    129 5
    Not sure this is that simple to set up. We intended to charge the same but add extra for DDP. For example,.if an item is £80 here in the UK, it'll be £80 + local vat for them to be sent DDP rather than £66.7 + local vat if that makes sense?
     
    Posted: Jul 8, 2021 By: GuyMor Member since: Mar 23, 2016
    #3
  4. GuyMor

    GuyMor Contributor

    129 5
    Also, reading in royal mail, it seems they would have to somehow replace our existing checkout process?
     
    Posted: Jul 8, 2021 By: GuyMor Member since: Mar 23, 2016
    #4
  5. romeo b

    romeo b UKBF Contributor

    98 21
    Sorry not sure. I am not VAT reg'd in the UK so each person is slightly different, but in my mind I know how I need to operate to continue - which is via two revenue streams at the moment:

    1) Sell via eBay - buyer has paid VAT, eBay remits VAT, I don't even see or involve myself with it. I dispatch using Royal Mail using an IOSS-approved service (either tracked, tracked+signed, just signed, regular letter, regular parcel. etc).

    2) Sell via my Website. I make the buyer see their VAT rate at checkout, they have to pay it, so I receive the whole amount including the VAT. I then dispatch via RM DDP and they bill me this VAT, so it's cancelled out. Plus the service charge (50p) and postage cost itself, which was always there anyway.

    I think RM DDP will just charge you the VAT and RM sort it out. They essentially take it back off you. I don't see why you can't just edit your cart to get the customer to pay item+local VAT to you, and then as long as you use RM DDP you are accounted for. If you collect the VAT and don't involve RM DDP, then you'd need to somehow remit this VAT, which is IOSS Registration for yourself.

    The main thing here is Royal Mail DDP is not live yet, it's in trial period, and not every country supports it. So you may find you can't ship to every country using if you use DDP and RM are to remit the VAT.
     
    Posted: Jul 8, 2021 By: romeo b Member since: May 17, 2021
    #5
  6. Kate881

    Kate881 UKBF Newcomer

    10 0
    I have an IOSS number from Crossborderit, they still haven't worked everything out & it seems to be a bit of a trust system at the moment (I've got 1 order so far that's paid EU VAT that I need to send using the number later today, via UPS which IS set up to allow that) I don't have the correct codes on my RM C&D account (pay as I go business one) so need to find a spare day to sit on hold to them as the number I called & eventually spoke to someone they just gave me a different number!!
     
    Posted: Jul 9, 2021 By: Kate881 Member since: Nov 27, 2018
    #6
  7. Vikkkkki

    Vikkkkki UKBF Newcomer

    7 0
    Hi! Have you solved this problem? In fact, postal transportation can only use the DDU model. My order fulfillment center provides DDP services to Europe. Do you need more help? please let me know.
     
    Posted: Jul 22, 2021 By: Vikkkkki Member since: Jul 22, 2021
    #7
  8. Vikkkkki

    Vikkkkki UKBF Newcomer

    7 0
    Hi, I think you should pay attention to the notification when you apply for an IOSS number. The system will prompt you whether the number can now be used for EU parcels.
     
    Posted: Jul 22, 2021 By: Vikkkkki Member since: Jul 22, 2021
    #8
  9. GuyMor

    GuyMor Contributor

    129 5
    Yes please. How do they do it DDP?
     
    Posted: Jul 29, 2021 By: GuyMor Member since: Mar 23, 2016
    #9
  10. Vikkkkki

    Vikkkkki UKBF Newcomer

    7 0
    It's like every parcels ship to EU used logistic suppliers' IOSS number. We paid them 2% service fee. I think it's good for small business or who didn't have company in EU. But if you are running some big business, I think it will be better to sign up your own IOSS number.
     
    Posted: Jul 30, 2021 By: Vikkkkki Member since: Jul 22, 2021
    #10