Shipping platforms have been an essential part of e-commerce from the very beginning. Over the years, many have grown into multi-billion-euro companies, earning the trust of merchants and the backing of e-commerce platforms. Their core value lies in making logistics accessible: offering multiple last-mile delivery options, often at discounts of 30% to 40% compared to standard carrier rates, all through a single, easy-to-use interface.
For merchants, setup is simple. Install the aggregator app, connect a payment method, and you can begin shipping to multiple destinations. Standardisation, ease of use, and reliability have turned these platforms into a cornerstone of the online selling experience. But as e-commerce continues to globalise, a new layer of complexity has emerged: tax compliance – especially where shipping platforms and IOSS compliance must work hand in hand.
Aligning Shipping Platforms and IOSS Compliance
At EAS, we have reviewed dozens of shipping platform solutions on the market. In most cases, they function exactly as intended. However, as soon as a parcel crosses a national border, logistics must align with complex customs, VAT, and import regulations.
Shipping platforms are in a unique position to help merchants meet these requirements efficiently. By joining forces with EAS, we can provide a unified experience where logistics and compliance move in lockstep—delivering not just parcels, but certainty. For more insights, you can visit the EAS Blog.
Example: Shopify – Valuation and Currency Pitfalls
Shopify typically provides item prices as VAT-inclusive when VAT is applied. However, for customs clearance, the relevant value is the intrinsic value (the item price excluding VAT and shipping). If this VAT is not properly deducted, customs authorities may calculate duties based on the wrong amount.
When Shopify’s settings are configured for IOSS (for example, when the €150 threshold is enabled), it may automatically provide VAT-exclusive prices. Most shipping platforms simply forward the order data without validating it. This can lead to double taxation at delivery or customer refusals.
Currency Confusion: Shop Currency vs Presentment Currency
Shopify records order data in two currencies: Shop currency and Presentment currency. Shipping platforms often do not allow merchants to specify which currency to use, leading to overvaluation at customs. For instance, a €130 order declared as £130 triggers excess VAT and potential rejections.
Handling Tax Identifiers: A Shared Opportunity
Many platforms allow only a single IOSS number per merchant account. In practice, a merchant might need to use multiple identifiers: a marketplace’s IOSS number for marketplace sales, and their own IOSS number for direct website orders. Supporting multi-channel identifier logic is a valuable upgrade to boost merchant satisfaction.
Best Practices for Seamless Compliance
- ✅ Flexible Tax Identifiers: Allow multiple IOSS numbers based on sales channel.
- ✅ Transparent Valuation: Clarify how VAT is handled for customs use.
- ✅ Carrier Compatibility: Show which carriers support IOSS and DDP shipments.
Partnering for a Better Merchant Experience
As global tax regulations evolve, there is a growing opportunity for aggregators and compliance providers to work hand in hand. By integrating shipping platforms and IOSS compliance, merchants can expand confidently across borders.
Ready to automate your cross-border tax compliance? Join thousands of sellers scaling globally with EAS.
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