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Category: VAT & IOSS

  • Tax compliance for selling into the EU – strategies & tips

    EU Tax Compliance for Digital Sales | EAS
    VAT & IOSS

    Tax Compliance for Selling Into the EU – Strategies & Tips

    Why EAS is Your Ally in the Digital Marketplace

    The European e-Commerce market presents a significant opportunity for businesses to expand their sales of digital goods or services — but to confidently enter this market, understanding tax compliance for selling into the EU is essential. With the recent measures introduced by the European Commission to combat VAT fraud, it is essential for businesses to navigate this market effectively. How can businesses master sale of digital goods in EU markets?

    In order to succeed in EU markets, businesses must understand the VAT compliance requirements and broader EU tax compliance obligations. This includes registering for VAT in the relevant countries and ensuring accurate reporting and collection of VAT. How can businesses streamline their VAT compliance processes while staying on top of changing regulations?

    To effectively target EU markets, businesses need to consider local preferences, cultural nuances, and language variations. How can businesses tailor their marketing and communication strategies to resonate with their EU customers and build brand affinity?

    Mastering the sale of digital goods in EU markets requires a comprehensive approach that encompasses tax compliance, localisation strategies, and a deep understanding of the target audience. How can businesses leverage technology and automation solutions to streamline operations and ensure a seamless customer experience across different EU countries?

    By implementing these key strategies and tips, businesses can position themselves for success in the dynamic and evolving EU digital marketplace. How can businesses stay informed of the latest market trends and developments to stay ahead of the competition and capitalise on new opportunities in EU markets

    Mastering Digital Sales to EU Markets: Essential Strategies & Tips

    The European eCommerce market presents a significant opportunity for businesses to expand their sales of digital goods. With the recent measures introduced by the European Commission to combat VAT fraud, it is essential for businesses to navigate this market effectively. In order to succeed in EU markets, businesses must understand the tax compliance requirements, especially since for distance sales of digital products, sales or value thresholds do not exist. Compliance includes registering for relevant VAT schemes and ensuring accurate reporting and collection of VAT.

    To streamline their VAT compliance processes while staying on top of changing regulations, businesses can consider the following strategies:

    • Utilise automation and technology solutions to simplify VAT reporting and collection processes.
    • Stay updated with the latest regulatory changes and seek guidance from tax experts or consultants.
    • VAT is collected according to assumed country of consumption VAT rate, seller must ensure correct VAT rates are used.
    • Maintain detailed records of sales and transactions to ensure accurate reporting.

    Additionally, to effectively target EU markets, businesses need to consider local preferences, cultural nuances, and language variations. By tailoring their marketing and communication strategies to resonate with EU customers, businesses can build brand affinity and gain a competitive edge.

    To achieve this, businesses can implement the following tactics:

    • Conduct market research to understand the specific needs and preferences of EU customers.
    • Localise their website, product descriptions, and marketing materials to suit each target country.
    • Use language variations and translations to cater to different language-speaking audiences.

    Mastering the sale of digital goods in EU markets requires a comprehensive approach that encompasses VAT compliance, localisation strategies, and a deep understanding of the target audience. By leveraging technology and automation solutions to streamline operations, businesses can ensure a seamless customer experience across different EU countries.

    To stay informed of the latest market trends and developments, businesses should:

    • Regularly monitor EU eCommerce news and industry publications.
    • Attend relevant conferences, webinars, or workshops to gain insights from industry professionals.
    • Network with other businesses in the same industry to share experiences and best practices.

    By implementing these key strategies and tips, businesses can position themselves for success in the dynamic and evolving EU digital marketplace. They can stay ahead of the competition and capitalise on new opportunities in EU markets

    How EAS simplifies tax compliance for sellers into the EU?

    At EAS, we understand that navigating the complexities of VAT compliance is daunting, especially with the introduction of new regulations. However, our fully automated platform takes the burden off your shoulders, ensuring you operate within the legal framework and avoid potential penalties. Here’s how:

    • Real-time VAT calculation: Our system automatically calculates the correct VAT rate based on the buyer’s location and the product or service being purchased. This eliminates the risk of human error and ensures accurate VAT reporting.
    • Automatic filing of VAT returns: We file with national tax authorities, making submitting VAT returns timely and accurate, every time. This saves you valuable time and resources.
    • Global compliance support: Our team of experts stays up-to-date on the latest VAT regulations across Europe and beyond. We provide ongoing support and guidance to ensure your business remains compliant, regardless of where you operate.

    Mastering digital sales in EU markets requires businesses to have a strong understanding of tax compliance requirements, including the concept of place of supply. This involves registering for VAT in relevant countries, accurately reporting and collecting taxes based on the place of supply, and staying updated with regulatory changes. Streamlining VAT compliance processes can be achieved through automation and technology solutions, as well as maintaining detailed records to ensure accurate reporting and collection of taxes.

    Leveraging technology and automation solutions is essential for ensuring a seamless customer experience across different EU countries. By staying informed of the latest market trends and developments through monitoring news and industry publications, attending conferences or workshops, and networking with industry professionals, businesses can stay ahead of the competition and capitalize on new opportunities.

    EAS offers a comprehensive solution to help businesses comply with the new VAT regulations. Their automated platform ensures accurate VAT calculations, automatic filing of VAT returns, and global compliance support. With EAS, businesses can navigate the complexities of VAT compliance and avoid potential penalties.

    Embrace the future of tax compliance with EAS

    The new EU measures to combat VAT fraud represent a positive step towards a more sustainable and equitable digital marketplace. By partnering with EAS, you can ensure your business remains compliant with the latest regulations, allowing you to focus on what you do best – growing your online sales and reaching new customers across Europe.

    Contact us today and discover how EAS can simplify tax compliance for your online business. Together, we can build a fairer and more prosperous digital future for all.

    How EAS works?

    EAS is your one-stop solution for EU VAT compliance. We handle everything from VAT registration and store configuration to automated data collection and tax filings. Focus on growing your business while EAS ensures you meet all your EU tax obligations. Start your journey to streamlined tax compliance in just days – start at https://easproject.com/reg.

    Frequently Asked Questions

    This FAQ provides answers to commonly asked questions about mastering digital sales to EU markets and VAT compliance with EAS.

    1. What are the key considerations for businesses selling digital goods in EU markets?

    Businesses selling digital goods in EU markets must understand VAT compliance requirements and consider local preferences, cultural nuances, and language variations to effectively target their audience. They should also leverage technology and automation solutions to streamline operations and ensure a seamless customer experience.

    2. How can businesses streamline their tax compliance processes?

    To streamline VAT compliance processes, businesses can utilize automation and technology solutions, stay updated with regulatory changes, ensure correct VAT rates are used, and maintain detailed sales records for accurate reporting.

    3. How can businesses tailor their marketing and communication strategies to resonate with EU customers?

    Businesses can tailor their marketing and communication strategies by conducting market research, localizing their website and marketing materials, and using language variations and translations to cater to different language-speaking audiences in the EU.

    4. How can businesses leverage technology and automation solutions to ensure a seamless customer experience across EU countries?

    Businesses can leverage technology and automation solutions to streamline operations, automate VAT calculations and returns, and ensure accurate reporting and timely submission. This helps to provide a consistent and seamless customer experience across different EU countries.

    5. How can businesses stay informed of the latest market trends and developments in EU markets?

    To stay informed, businesses can regularly monitor EU eCommerce news and industry publications, attend relevant conferences, webinars, or workshops, and network with other businesses in the industry to share experiences and best practices.

    6. How can EAS help businesses comply with the new regulations?

    EAS offers a fully automated platform that simplifies VAT compliance for online businesses. It provides real-time VAT calculation, automatic filing of VAT returns, and global compliance support, ensuring businesses operate within the legal framework and avoid penalties.

    7. How does EAS work?

    EAS is a one-stop solution for EU VAT compliance. It handles VAT registration, store configuration, automated data collection, and tax filings. Businesses can focus on growing their sales while EAS takes care of meeting EU tax obligations.

    8. How has Brexit impacted UK companies selling digital goods and services in EU markets?

    As being outside of EU, all UK companies selling digital services and goods to EU require a registration to non-Union OSS scheme for collection, reporting and payment of VATs.

    9. Are there any changes in VAT compliance requirements for UK businesses selling digital products or services in EU markets post-Brexit?

    UK businesses require additional registrations for selling of digital services and goods to EU, currently the non-Union scheme. Before Brexit, UK companies could take advantage of the high VAT registration threshold in UK and the intra-EU cross-border threshold. Now all sales of digital services and goods by UK companies must be levied with VAT.

    10. What steps should UK businesses take to ensure seamless operations and compliance with EU regulations in the post-Brexit landscape when selling digital goods and service

    UK businesses selling digital services and digital products in EU markets post-Brexit should take the following steps to ensure seamless operations and compliance with EU regulations:

    1. Register for the non-Union OSS scheme for VAT collection, reporting, and payment.
    2. Ensure all sales of digital goods and services are levied with correct, destination country VAT.
    3. Stay updated with the latest VAT compliance, rules, requirements and regulatory changes.
    4. Utilise automation and technology solutions to streamline VAT compliance processes.
    5. Maintain detailed records of sales and transactions for accurate reporting.
    6. Consider local preferences, cultural nuances, and language variations to tailor marketing strategies.
    7. Stay informed about market trends and developments through industry publications, conferences, and networking
    11. Do you charge VAT on digital services to EU?

    Yes, just as with physical goods, taxes have to be paid when selling to European Union Consumers

    12. How can businesses get started with EAS?

    Businesses can start their journey to streamlined VAT compliance with EAS in just days by visiting https://easproject.com/reg and accessing the comprehensive solution provided by EA

    You might also find these helpful:

    Start your EU tax compliance setup with EAS

    EAS helps businesses handle EU VAT registration, store configuration, automated data collection, and tax filings so you can focus on sales.

    Register with EAS Book a meeting

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    Continue exploring EU VAT schemes, registration requirements, and automated compliance for businesses selling digital goods and services into Europe.

    Non-Union Scheme: what kind of animal is it?

    The Non-Union scheme can sound like another confusing VAT shortcut. Knowing when it applies, who can use it, and how it differs from IOSS or OSS is another. This guide covers what non-EU sellers need to understand before choosing the right VAT route.

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    Beginners guide to VAT

    EU VAT for Beginners: Simple Steps to Automated VAT Compliance Welcome to your beginner’s guide to EU VAT. VAT—Value Added Tax—applies throughout the European Union.

    Read article →

    From EU Registration to Reporting: Fully automated EAS Solution

    EAS Solution empowers non-EU online sellers to expand into the EU market with confidence, knowing that their VAT compliance is taken care of. Our fully automated solution takes the burden off your shoulders, allowing you to focus on what you do best – growing your business and serving your customers.

    Read article →

  • IOSS FAQ

    IOSS Registration & Intermediary FAQ | EAS
    VAT & IOSS

    IOSS Registration & Intermediary | Q&A

    IOSS is a simplified VAT scheme for cross-border sales. IOSS registration & intermediary services simplify VAT compliance and reduce costs for sellers, especially those outside the EU.

    If you have any questions about IOSS registration & intermediary services, reporting, filing, or cross-border sales, we are here to help.

    EAS is a fully automated compliance solution, no-code, for IOSS, OSS, Non-Union OSS, and UK VAT. With EAS, you can expand to new markets with ease.

    All information about Import One-stop shop (IOSS), EU VAT and IOSS registration

    1. Does EAS register companies for IOSS?

    Yes, EAS registers companies for IOSS. All EAS customers have their own unique IOSS number. EAS acts as an IOSS intermediary

    EAS registers companies for IOSS without any registration fees, monthly fees or minimum volumes.

    2. What is EAS IOSS service?

    EAS IOSS service in an all-inclusive IOSS service covering IOSS registration & intermediary services and more.

    EAS registers sellers for IOSS and acts as an IOSS intermediary. EAS collects automatically all EU sales data from eCommerce platforms and creates and files IOSS reports.

    With EAS Shopify, Woocommerce and other platform apps, EAS makes sure sellers are collecting the right amount of taxes from their EU customers.

    EAS offers free-of-charge installation and configuration service.

    3. How to start with EAS?

    You can start the process by registering at easproject.com/reg

    Make sure you have at hand:

    • A copy of a Company / sole trader registration document
    • A copy of an official ID
    • Copy of VAT registration (only if you have a VAT registration)

    Once we have your registration, we can start the IOSS registration process and installation / configuration. We can make you IOSS registered within one hour.

    We highly recommend our free installation and configuration service. The installation and configuration are done within 24 hours. You can choose the free installation in the registration form.

    4. Which eCommerce platforms are supported by EAS?

    EAS supports most of the popular eCommerce platforms. Currently you can use EAS with:

    • Shopify
    • Woocommerce
    • Shoplazza
    • Kickstarter
    • Prestashop
    • Wix
    • SquareSpace
    • Shopware
    • Plentymarkets

    Other platforms are supported too, if your eCommerce platform is not in the list above, please contact [email protected]

    5. Do I get unique IOSS number with EAS?

    Yes, EAS registers companies for unique IOSS numbers. We are a compliance solution provider we make sure you are 100% compliant.

    6. How do I register for IOSS?

    The easiest way to start is to register through EAS. We handle the full IOSS registration & intermediary process so that you can begin selling to EU customers without delays. If you already have an IOSS number our solution is still usable for full automations.

    If you want EAS to register you for IOSS, start by registering with us at easproject.com/reg

    Any registered business can register for the IOSS through an EU-based IOSS intermediary. Businesses in the EU can register for the IOSS directly, or through an IOSS intermediary.

    The most talked about EU VAT scheme is by far the IOSS. The IOSS allows for a simplified customs process and collection of VAT at the time of sale for goods delivered from outside of the EU.

    The IOSS registration process depends on whether your company is registered in the EU or not. For an EU company it is a very straightforward process: go to your national tax administration online portal (yes, they all have it), login in, and find the place to register for the IOSS. Should take less than 10 minutes. In digitally advanced countries you will receive the IOSS number immediately, in some by mail.

    For a non-EU company, the process looks very different. They will need an Intermediary to handle the IOSS registration. The IOSS number is as much the Intermediary’s as it is the online merchant’s as they are also responsible for the reporting and payment of VAT. This is also why most charge a hefty starting fee for the service. For non-EU companies, the registration country can be chosen by the Intermediary.

    Mind you, you have to really be mindful about who and where you disclose the IOSS number: misuse is rampant and can result in you being responsible for someone else’s VAT. And once you register for the IOSS, also zero reports have to be filed.

    Because we at EAS believe in automating the difficult, we don’t have to charge you for the IOSS registration or monthly filing. The shipments have to all go through our SaaS for full, credible compliance. Shipments can also be manually entered into the SaaS if they are placed by phone or email. This results in a stress-free, cost-efficient way to handle the scary international compliance.

    7. What does IOSS registered mean?

    Being IOSS registered means the company can utilise the lighter customs process in EU customs and collect VAT at checkout. It also means a liability to report and pay VAT monthly to the country of registration.

    IOSS number tells the customs that there is a VAT liable company somewhere and that they don’t have to collect VAT on the shipment as it will be reported and paid.

    It is basically a facilitator for a faster, more cost-efficient delivery and better customer service via single action purchase.

    8. How much does IOSS registration cost?

    All-inclusive IOSS plans for EU sales without any manual work

    Provide the ultimate customer experience for your EU customers – everything is paid at the checkout, with no customs handling or other fees upon arrival. With us you you don’t have to wait to become compliant!

    View EAS pricing plans

    9. Is IOSS number the same as VAT number?

    No, the IOSS number is not the same as VAT number. The IOSS allows suppliers selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU

    IOSS is a unique number impossible to deduct from any other identifier due to its exposure to risks.

    10. Is IOSS compulsory?

    No, IOSS is not obligatory.

    We do recommend it, however, if your goods fall under the 150€ threshold. Nothing wrong with faster and cheaper delivery and an easier shopping experience for customers.

    11. What happens if I don’t register for IOSS?

    If you don’t register for IOSS, your customers pay the VAT at the moment the goods are imported into the EU. It causes delays at customs, unexpected handling fees and an unpleasant customer experience. If you are not registered for IOSS, you cannot take advantage of the simplified IOSS scheme.

    Your deliveries cost more, take longer time and can require post-purchase actions from your customers.

    12. What are the benefits of IOSS?
    • Better customer experience
    • VAT can be charged at checkout, not at arrival
    • Lower delivery fees
    • Faster deliveries
    • Postal delivery possible
    • No post-purchase actions are required from your customers
    13. Does IOSS include shipping costs?

    IOSS does not include shipping costs.

    IOSS 150€ threshold is calculated from the zero VAT without shipping or other fees.

    14. Do I need to be VAT registered to sell in EU?

    No, you don’t need VAT registration to sell to the EU.

    If you are located outside of the EU, IOSS registration is highly recommended. VAT registration is not required for IOSS registration.

    You have to have a company registered in your country, also a sole entrepreneur or similar is sufficient.

    As a non-EU company you can, have a VAT registration in the EU, but before you begin stocking goods in the EU you are not obligated to do so.

    15. Can I have IOSS registration in UK?

    After Brexit, no you can’t.

    16. How do I register for IOSS in UK?

    You cannot register for IOSS in the UK, you register for IOSS in an EU country Remember Brexit?

    Talk to EAS. We have hundreds of companies from the UK registered for IOSS.

    17. What is an IOSS intermediary?

    IOSS intermediary acts on behalf of its clients in order to perform all reports and VAT payments to the EU tax authorities. If businesses are not based in the EU, they need to appoint an EU-established intermediary to fulfil their VAT obligations under IOSS.

    18. What to concern about IOSS number?

    If you get a random IOSS number from the internet, you will be able to get the goods through the customs and someone else VAT liable – until your tax fraud will be caught and you will be banned from selling to EU. The EU customs collect data on IOSS numbers and tax administrations and then compare the IOSS reporting data.

    “Borrowing” IOSS number is also common while being specifically forbidden. The process goes as follows: A party along the delivery chain has registered themselves for IOSS. They insert the IOSS number into the shipping data and collect VAT due from the merchant. The reason why this is specifically forbidden is that the value data is falsified more often than not. In addition, seller data is wrong and does not serve the purpose. A very temporary solution and more expensive than actually being compliant with EAS.

    Simplify EU VAT with Expert IOSS Registration & Intermediary Services

    Ready to expand into the EU? EAS offers complete IOSS registration & intermediary services, covering reporting, filing, and compliance. Register today.

    Register today View pricing Book a Meeting

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    Continue exploring automated EU VAT compliance, IOSS number requirements, and practical solutions for avoiding VAT issues on EU deliveries.

    From EU Registration to Reporting: Fully automated EAS Solution

    EAS Solution empowers non-EU online sellers to expand into the EU market with confidence, knowing that their VAT compliance is taken care of. Our fully automated solution takes the burden off your shoulders, allowing you to focus on what you do best – growing your business and serving your customers.

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    IOSS number – should I use my own or “borrow” one?

    Borrowing an IOSS number might look like the fastest way to keep EU sales moving. Understanding the VAT, customs, and liability risks that come with it is another. This guide covers when merchants need their own IOSS number instead of relying on someone else’s.

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    How to handle IOSS double taxation?

    IOSS should prevent VAT surprises at delivery, but customs glitches and data discrepancies can still cause double taxation. Learn how to resolve IOSS VAT issues, support customers and prevent repeat problems.

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  • IOSS validation issues at EU customs

    IOSS Validation Issues at EU Customs | EAS
    VAT & IOSS

    IOSS Validation Issues at EU Customs – How EAS Ensures Smooth Compliance

    At EAS, we understand the importance of seamless IOSS compliance for your e-commerce business.

    At EAS, we understand the importance of seamless IOSS compliance for your e-commerce business. Recent temporary IOSS validation issues at EU customs might cause some disruptions, but rest assured, our team is here to navigate you through this hurdle and ensure a smooth and compliant transition for your business.

    The Challenge: Temporary IOSS Validation Issues for Online Sellers

    EU customs are experiencing occasional hiccups due to IOSS validation issues when verifying numbers. This can lead to delays and customers being asked to pay VAT upon delivery, even if the IOSS number is valid. These temporary disruptions in the smooth flow of goods could potentially cause inconvenience, but we are here to support you every step of the way.

    The EAS Advantage: Your Trusted IOSS Partner

    • Guaranteed IOSS Validity: As an EAS customer, you can rest assured that your IOSS number is 100% valid. We ensure it is correctly registered and, should any changes occur, we will notify you immediately.
    • Fast and Easy Support: We do not rely solely on slow official channels. Our team can quickly provide a screenshot of your IOSS status to ease your mind, ensuring you have the necessary documentation without delays.
    • Clear Customer Communication: We empower you with the information needed to advise your customers about the temporary glitch, guiding them to avoid unnecessary VAT payments and complications in customs clearance.

    What We’re Doing to Help

    • Constant Monitoring: Our team closely monitors the situation and provides regular updates through our blog and newsletters to keep you informed of any developments.
    • Active Participation: We are actively participating in discussions with all relevant parties to address and resolve the IOSS validation issues swiftly.
    • Guidance and Best Practices: We offer clear instructions on how to minimize the impact on your customers, including detailed steps on what to do if they encounter VAT payment requests.
    • Streamlined Reimbursement Process: In case a customer pays VAT due to the glitch, we have a simple manual correction process within the EAS Dashboard. This allows you to reimburse them quickly and efficiently.

    What You Can Do

    • Stay Informed: Follow our blog and newsletters for the latest updates and guidance. Staying informed will help you navigate these temporary challenges more effectively.
    • Reassure Your Customers: Communicate with your customers, letting them know about the temporary IOSS validation issue and that you are working with EAS to resolve it. Advise them not to pay any VAT or customs fees at delivery and instruct them to ask the carrier to retry the IOSS number.
    • Utilize EAS Resources: Refer to our comprehensive FAQ section and contact our support team if you have any questions. Our team is here to help you with any concerns or issues that may arise.

    FAQ: Temporary IOSS Validation Issues

    1. What are the current IOSS validation issues at EU customs?

    EU customs are experiencing difficulties verifying IOSS numbers, which may result in customers being asked to pay VAT upon delivery, even if the IOSS number is valid.

    2. Why are customers receiving notification about IOSS validation issues or that their IOSS number is not valid?

    Customers may receive this notification due to temporary access problems to the central database at EU customs. However, as an EAS customer, your IOSS number is valid.

    3. Will customers face double taxation because of this issue?

    Yes, due to the IOSS validation issues, EU consumers may face double taxation. They might be asked to pay VAT for the second time, in addition to full customs fees.

    4. How can businesses correct reports in case of double taxation?

    Follow the instructions provided here to learn how to correct your reports manually in the EAS Dashboard.

    5. What should businesses do to minimize the impact on their customers?

    Hold off on sharing the IOSS number with customers, as disclosing it does not solve the validation issue and exposes businesses to misuse risks. Advise customers about the temporary glitch and instruct them not to pay any VAT or customs fees at delivery. Inform customers to politely ask the carrier to retry the IOSS number.

    6. Is the IOSS number still valid for EAS customers?

    Yes, as an EAS customer, your IOSS number is 100% valid. If any changes occur to your IOSS status, we, as your IOSS intermediary, will have knowledge of it.

    7. Will a certificate of validity from the Estonian tax administration help?

    No, unfortunately, a certificate of validity from the Estonian tax administration will not have any effect on how customs treat the shipment. Official requests can take up to 3 weeks. We can provide a screen capture of the IOSS status much faster to ease your mind.

    8. How can businesses reimburse customers if they end up paying VAT and customs fees?

    If customers have paid VATs and customs fees, businesses should reimburse them at least for the VATs. Manual corrections can be made via the EAS Dashboard. Invoices from customers will be required for the reimbursement.

    9. Is it possible to retrieve the customs fee from the carrier partner?

    It is unlikely that businesses will be able to retrieve the customs fee from the carrier partner, as they acted on orders from customs.

    10. What should businesses do if a customer contacts them about this issue?

    Acknowledge the problem and assure customers that you are aware of the temporary IOSS validation issue and are working towards a solution. Reassure customers that they should not be responsible for VAT charges and that the carrier should retry the IOSS number until it is successfully validated.

    Conclusion

    At EAS, we are committed to helping you navigate this temporary hurdle with IOSS validation issues. By staying informed and proactive, we can ensure a smooth IOSS experience for your business. Together, we can overcome these challenges and continue to provide seamless and efficient service to your customers.

    For more information

    Explore EAS pricing, learn more about our solutions, register with EAS, or subscribe to EAS Newsletter.

    Register with EAS EAS pricing More information about our solutions Subscribe to EAS Newsletter

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    Continue exploring IOSS double taxation, shipping platform setup, and provider changes to keep EU VAT and customs workflows running smoothly.

    How to handle IOSS double taxation?

    IOSS should prevent VAT surprises at delivery, but customs glitches and data discrepancies can still cause double taxation. Learn how to resolve IOSS VAT issues, support customers and prevent repeat problems.

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    Shipping Aggregators and IOSS

    Shipping platforms can make cross-border sales feel simple. Making sure they handle IOSS correctly at checkout, customs, and reporting is another. This guide covers what merchants need to know before relying on their platform for EU VAT compliance.

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    Changing your IOSS service provider

    Getting a new IOSS number is one thing. Updating marketplaces, shipping platforms, customs data, and internal workflows without missed orders is another. This guide covers how merchants can switch IOSS numbers without disrupting EU sales.

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  • My IOSS intermediary went bankrupt – here’s what to do next

    IOSS Intermediary Bankrupt? What to Do Next | EAS
    VAT & IOSS

    My IOSS Intermediary Went Bankrupt — Here’s What to Do Next

    Discovering your Import One-Stop Shop (IOSS) intermediary has gone bankrupt can feel overwhelming. This guide helps you regain control quickly without stopping your sales.

    Discovering your Import One-Stop Shop (IOSS) intermediary has gone bankrupt can feel overwhelming. However, quick, informed actions can significantly reduce disruptions to your business. This straightforward guide will help you regain control swiftly and, most importantly, ensure you don’t have to pause your sales!

    Step 1: Verify the Situation

    Immediately confirm your intermediary’s status through official EU tax authorities or directly from the intermediary. Official EU portals or local EU tax offices (such as Ireland’s Revenue.ie) are reliable sources for accurate updates.

    Step 2: Assess Immediate Compliance Risks

    Your intermediary’s bankruptcy invalidates your IOSS number, putting your business at risk of compliance violations, delayed shipments, and customer dissatisfaction. For example, during Eurora’s bankruptcy, VAT payments made to the intermediary weren’t forwarded to tax authorities, causing direct VAT claims against merchants. Quickly assess any outstanding VAT liabilities to avoid penalties.

    Remove the invalid IOSS number immediately from your systems to avoid accidental use.

    Step 3: Quickly Register with a New IOSS Intermediary

    Promptly register with a new, reliable IOSS intermediary. EAS Project can register companies for IOSS in real-time—often within just a few hours—ensuring you face minimal downtime. You won’t need to stop your sales, as onboarding is exceptionally quick, allowing for seamless continuation of your business operations. EAS offers fully automated IOSS Solutions, that are directly integrated with most common eCommerce Platforms. With us, no manual reporting or data uploads are required. Start the process by registering here: EAS Registration

    Step 4: Communicate Clearly with Your Customers

    Inform customers promptly about any potential shipment delays or temporary issues with VAT. Transparency preserves trust and helps maintain customer satisfaction. Be prepared to refund VAT charged upon delivery and, ideally, customs processing fees.

    Important Considerations

    • Your new intermediary cannot file reports or transfer previously incurred taxes from your bankrupt intermediary.
    • Keep invoices and payment receipts readily available. EU tax administrations typically accept these documents as proof of payment, helping you avoid double payments.
    • Regularly monitor your emails (including spam folders) for communications from EU tax administrations, which may arrive in various languages. Tools like AI translators can be very helpful here.

    Preventing Future Issues

    Regularly monitor your IOSS intermediary’s status, and always maintain a backup plan to safeguard your business from future disruptions.

    Act Now—Stay Compliant Without Interrupting Your Sales!

    At EAS Project, we’ve successfully assisted hundreds of merchants in quickly resuming normal operations following IOSS intermediary bankruptcies. Our efficient onboarding ensures your business continues uninterrupted.

    Contact EAS Project today and ensure your EU sales remain smooth, compliant, and profitable!

    Keep Your EU Sales Running

    Register with EAS, subscribe for compliance updates, or book a meeting with our team.

    Register with EAS Subscribe to EAS Newsletter Book a meeting

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    Continue exploring IOSS provider changes, intermediary shutdowns, and practical guidance for keeping EU sales compliant and uninterrupted.

    Changing your IOSS service provider

    Getting a new IOSS number is one thing. Updating marketplaces, shipping platforms, customs data, and internal workflows without missed orders is another. This guide covers how merchants can switch IOSS numbers without disrupting EU sales.

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    Taxamo shutting down Assure, Taxamo IOSS and EU Digital Sales Services

    Taxamo Assure, including Taxamo IOSS services is shutting down by the 30th of December 2024 at 13.00 GMT due to a strategic shift within its parent company, Vertex Inc. Here’s a guide on how to continue sales to European Union with EAS!

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    IOSS Registration & Intermediary

    Union OSS can simplify VAT reporting for EU sales. Making sure transactions, filing data, deadlines, and country-specific rates stay accurate is another. This step-by-step guide covers how merchants can manage Union OSS VAT filing with fewer errors.

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  • VAT Changes in the EU 2026: April Update

    VAT Changes in the EU and UK 2026: April Update | EAS
    VAT & IOSS

    VAT Changes in the EU 2026: April Update

    Country-specific VAT changes in Sweden, Austria, Finland, Slovakia and the UK, and what ecommerce sellers need to update in practice.

    Selling to the EU and UK in 2026 means keeping up with VAT changes that go beyond standard rates. While there are no widespread increases or decreases this year, several country specific updates affect how VAT must be applied to certain products.

    As of 15 April 2026, these are the VAT changes currently known and relevant for ecommerce sellers. Even smaller updates can directly impact checkout pricing, VAT reporting, and overall compliance.

    This article outlines the key VAT updates in 2026 and what they mean in practice for online sellers.

    Sweden: VAT Reduced on Food from April 2026

    According to the Swedish Tax Agency, Sweden is introducing a temporary VAT reduction on food. From 1 April 2026:

    • VAT on food is reduced from 12% to 6%
    • Applies to food for human consumption, including beverages, takeaway food, edible plants, milk, additives, bottled water and dietary supplements
    • Does not apply to alcohol
    • Food consumed in restaurants and cafés remains at 12%

    The reduced rate is expected to remain in place until the end of 2027.

    What this means in practice

    For sellers shipping food products to Sweden, VAT must be updated at checkout from April onwards. If the correct rate is not applied:

    • VAT may be under collected or over collected
    • reporting may be incorrect
    • customer pricing may be inconsistent

    This change is particularly relevant for businesses selling food, supplements, or similar consumable products.

    Austria: 0% VAT on Specific Products

    From 1 January 2026, Austria applies a 0% VAT rate to certain essential goods:

    • women sanitary products
    • contraceptives

    What this means in practice

    This only applies if products are correctly classified. If classification is incorrect:

    • the wrong VAT rate may be applied
    • compliance issues may arise in reporting

    This is mainly relevant for health and wellness ecommerce businesses.

    Finland: Adjustment to Reduced VAT Rate

    Finland has adjusted one of its reduced VAT rates in 2026:

    • reduced VAT rate changed from 14% to 13.5%
    • applies to selected categories such as books, cultural services, and event related services

    What this means in practice

    Even small changes in VAT rates require updates in:

    • pricing calculations
    • checkout VAT logic
    • reporting systems

    Businesses selling books or digital content into Finland should verify that correct rates are applied.

    Slovakia: VAT Increase on Selected Goods

    Slovakia has introduced a VAT increase on certain goods from January 2026:

    • selected food products increased from 19% to 23%
    • only “unhealthy” foods are affected

    Chocolate and confectionery (sweets, candy)
    Cakes, biscuits, sweet pastries
    Ice cream and frozen desserts
    Jams and sweet spreads
    Sweetened soft drinks and syrups
    Salty snacks (crisps/chips, salted nuts, snack bars)

    What this means in practice

    This change depends on product category. Sellers must ensure that:

    • products are correctly classified
    • the correct VAT rate is applied depending on category

    Incorrect classification can lead to incorrect VAT collection.

    United Kingdom: VAT Rule Changes

    There are no VAT rate changes in the UK in 2026. However, there are updates to VAT treatment in specific cases. One example is updated rules allowing VAT free donation of goods to charity under certain conditions.

    What this means in practice

    This mainly affects:

    • inventory handling
    • accounting processes
    • VAT reporting

    It does not directly impact checkout VAT rates, but it is relevant for operational processes.

    What This Means for Shopify, WooCommerce and Marketplaces

    A key question for ecommerce businesses is whether these changes are applied automatically or require manual updates.

    Shopify

    Shopify does not automatically apply all country specific and category specific VAT changes.

    • Standard VAT rates are updated automatically
    • Reduced rates and category specific rules are not handled automatically and require manual
    • Sellers need to:
      • adjust or apply tax overrides
      • assign products to reduced VAT collcetions

    For example, the Swedish VAT reduction on food will require manual configuration change – adjustment of food override for reduced VAT collection.

    WooCommerce

    WooCommerce requires more manual configuration.

    • VAT rates are managed through tax classes set up by EAS
    • Changes such as Sweden’s reduced food VAT or Slovakia’s category based increases must be made manually

    Without updates:

    • incorrect VAT may be applied
    • reporting may not match actual requirements

    Other E-commerce platforms

    Depending on the E-commerce platform you need to adjust applicable rates on collection or individual product level. Most platforms allow for such changes, please refer to the internal manuals.

    Marketplace

    Marketplaces such as Amazon or eBay often handle VAT collection in certain scenarios, particularly for low value imports. However:

    • not all VAT scenarios are covered
    • category specific changes may not always be correctly applied
    • sellers remain responsible for compliance in many cases

    It is important not to assume that marketplaces will automatically handle all VAT changes.

    Key Takeaways for Ecommerce Sellers

    The VAT changes in 2026 highlight a clear shift in how VAT evolves across the EU and UK:

    • VAT changes are increasingly category specific, not broad rate changes
    • Even small updates can impact pricing, checkout accuracy, and reporting
    • Platforms do not always apply these changes automatically
    • Sellers cannot rely solely on default tax settings

    To stay compliant, businesses should:

    • Review VAT settings for each country they sell to
    • Verify that product classifications are correct
    • Check whether their ecommerce platform applies updated rates accurately
    • Ensure consistency between checkout VAT and reporting

    VAT in 2026 is not defined by major rate changes, but by targeted updates that require attention to detail. For ecommerce sellers, the focus should be on making sure these smaller changes are correctly implemented across systems to avoid errors and maintain a smooth customer experience.

    Keep Your VAT Setup Accurate with EAS

    EAS helps ecommerce merchants manage EU and UK VAT compliance, tax calculation, registration and reporting while keeping checkout tax settings aligned with changing country-specific rules.

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    More Guides & Insights

    Continue exploring EU import changes, UK VAT and the different VAT registrations ecommerce merchants may need when selling across Europe.

    New EU €3 Customs Duty on Small Parcels: July 2026 Update

    Selling low-value goods into the EU is changing fast. Keeping the new €3 parcel duty, IOSS requirements, and future customs reforms from disrupting checkout is another. This guide covers what merchants need to know before the 2026 overhaul.

    Read article →

    All you need to know about UK VAT

    UK VAT can feel simple until the details start stacking up. Knowing when to register, how rates apply, and what records sellers need to keep is another. This guide covers what businesses need to know before selling in the UK.

    Read article →

    VAT registrations, why are there so many?

    EU VAT registrations can feel like a jungle. Learn the differences between OSS, IOSS, VAT registration and non-Union OSS, when each applies, and how EAS helps with registration and reporting.

    Read article →

  • Special VAT territories in the EU

    Special VAT Territories in the EU: Merchant Guide | EAS
    VAT & IOSS

    Special VAT Territories in the EU

    What Merchants Need to Know: Navigating the complex fiscal map of Europe, from Northern Ireland to the Canary Islands, with automated precision.

    Why Special VAT Territories Matter

    The European Union’s complex history and geography have created an equally complex VAT landscape. VAT rules do not apply uniformly across all territories, and misjudging the status of a region like Monaco or Gibraltar can lead to significant compliance errors.

    Even e-commerce giants often misapply these rules. For example, Brexit has introduced unique alignment for Northern Ireland, which remains fiscally linked to certain EU regulations. Merchants shouldn’t be expected to master these nuances—that’s where automated solutions like EAS come in.

    Breaking Down the EU’s Fiscal Map

    To simplify global sales, here is how the main categories of European territories are structured:

    1. EU Countries

    • 27 member states of the European Union.
    • Includes Northern Ireland for certain fiscal purposes.
    • Handled via IOSS for orders under €150.

    2. Non-EU Countries

    • Switzerland, Norway, UK, Iceland, etc.
    • EU VAT laws do not apply.
    • Sales should be handled as DDU or DDP via local tax rules.

    Associated & Special Status Territories

    Some territories linked to EU states have unique VAT profiles:

    • Monaco: Treated as part of France for fiscal purposes (often mislabeled by platforms).
    • San Marino: In EU customs territory, but EU VAT rules do not apply.
    • UK Sovereign Base Areas: Follow Cyprus VAT rules, including IOSS eligibility.
    • Azores & Madeira: Portugal applies special reduced VAT rates here.

    EU Territories Outside the VAT Area

    EU VAT rules do not apply in these specific zones. Merchants must treat these as non-EU imports:

    • Spain: Canary Islands, Ceuta, Melilla.
    • Finland: Åland Islands.
    • France: Guadeloupe, Martinique, Réunion, Mayotte, French Guiana.
    • Germany: Heligoland, Büsingen.
    • Italy: Livigno, Campione d’Italia.

    Northern Ireland: A Special Case

    Under the Windsor Framework, Northern Ireland maintains a unique status:

    • Outside UK/EU to NI: B2C deliveries under £135 follow IOSS rules.
    • EU to NI / NI to EU: Standard Union OSS rules apply.

    EAS plugins feature dedicated settings to handle Northern Ireland’s status automatically.

    How Platforms Handle Territories

    Most e-commerce platforms struggle with these nuances. Shopify, for instance, frequently mislabels territories like the Canary Islands as part of mainland Spain. WooCommerce is more flexible but still requires manual configuration.

    EAS corrects these gaps by:

    • Setting Monaco to French VAT rates automatically.
    • Collecting correct VAT for Ceuta, Melilla, and the Azores.
    • Excluding non-VAT area sales from your fiscal reporting to prevent double taxation.

    Why You Don’t Need to Worry

    With EAS, you can sell confidently to every corner of Europe without mastering VAT law. We ensure that VAT is applied correctly, special rates are used where required, and non-VAT area sales are excluded from your reports automatically.

    Simplify EU VAT Compliance with EAS

    Automate VAT registration, tax calculation, reporting and ecommerce configuration so special VAT territories are handled correctly without adding manual work to your business.

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    More Guides & Insights

    Continue exploring EU VAT registration, IOSS and delivery models to better understand how tax and customs rules change across European markets.

    VAT registrations, why are there so many?

    EU VAT registrations can feel like a jungle. Learn the differences between OSS, IOSS, VAT registration and non-Union OSS, when each applies, and how EAS helps with registration and reporting.

    Read article →

    IOSS Registration & Intermediary

    Union OSS can simplify VAT reporting for EU sales. Making sure transactions, filing data, deadlines, and country-specific rates stay accurate is another. This step-by-step guide covers how merchants can manage Union OSS VAT filing with fewer errors.

    Read article →

    DDP vs DDU

    Navigating the complexities of sales to the EU and UK post-BREXIT demands a blend of common sense and practical expertise. Within the intricate realm of customs and logistics, hidden risks and opportunities abound. This article aims to shed light on the contrasting features of two common delivery terms: DDU and DDP

    Read article →

  • IOSS registration and intermediary

    IOSS Registration & Intermediary Guide 2026 | EAS
    VAT & IOSS

    IOSS Registration and Intermediary

    Your complete 2026 guide to obtaining an IOSS number. Learn how to navigate the mandatory intermediary requirements with full automation.

    If you are a non-EU company selling to European consumers, IOSS registration requires an intermediary. Simply put: you cannot have an IOSS number without one. Because the Intermediary is jointly responsible for your VAT reporting and payments, choosing a partner with the right technology is critical to your operational security.

    Why IOSS is Essential in 2026

    In the modern eCommerce landscape, IOSS has evolved from a compliance checkbox into a powerful growth tool. For DTC brands, the advantages are clear:

    Higher Checkout Conversions

    By displaying the final “landed cost” (VAT included), you remove the friction that causes cart abandonment. Transparent shopping builds immediate trust.

    Elite Customer Experience

    Quicker deliveries via the “Green Lane” and zero “doorstep fees” mean happy customers. This leads to significantly fewer returns and higher customer lifetime value.

    Reduced Operational Costs

    Automated IOSS removes the need for multiple VAT registrations and expensive carrier handling fees, saving money for both the merchant and the consumer.

    Selecting Your IOSS Intermediary: The Checklist

    With EAS, compliance charges are kept low due to the added security of our automated tax engine. Our direct integrations remove the need for manual data handling, eliminating the excessive fees common with legacy providers.

    • Automation: Is data retrieved directly from your checkout or managed manually?
    • Scalability: Can they support you as your business model evolves?
    • Transparent Fees: Are you paying a clear, predictable subscription?
    • Speed: Can you get your IOSS number in hours, or will it take months?

    Common IOSS Questions Answered

    Can IOSS be used for B2B?

    No, IOSS is purely a B2C scheme. Cross-border B2B sales are generally 0% VAT and handled differently in your accounting. Beware of suppliers claiming to use IOSS for B2B transactions.

    How long does it take to get an IOSS number?

    In digitally advanced countries like Estonia, registration takes just hours. With EAS, once you register here, our tax team starts the process immediately. You will have your own IOSS number in hours, not weeks.

    What happens if the shipment is over the threshold?

    Orders over 150€ are typically delivered DDU (Delivery Duty Unpaid). However, EAS can help you adjust your platform settings to provide DDP options, reducing returns and increasing customer satisfaction for high-value orders.

    Automate Your EU Expansion
    Starting at 19,90€/ month

    Includes full IOSS registration, Intermediary representation, and automated monthly filing. Transparent and secure.

    Start Your IOSS Registration

    Manage your registration via the EAS Dashboard .

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    Getting started with IOSS may seem complex, but with the right intermediary, the process is fast and automated. For non-EU businesses, the intermediary is the partner that ensures your brand can compete fairly on the European stage. Discover our IOSS Intermediary Services today.

    More Guides & Insights

    Continue exploring IOSS registration, IOSS number ownership and provider changes to keep your EU VAT setup compliant and your sales running smoothly.

    IOSS Registration & Intermediary FAQ

    Union OSS can simplify VAT reporting for EU sales. Making sure transactions, filing data, deadlines, and country-specific rates stay accurate is another. This step-by-step guide covers how merchants can manage Union OSS VAT filing with fewer errors.

    Read article →

    IOSS number – should I use my own or “borrow” one?

    Borrowing an IOSS number might look like the fastest way to keep EU sales moving. Understanding the VAT, customs, and liability risks that come with it is another. This guide covers when merchants need their own IOSS number instead of relying on someone else’s.

    Read article →

    Changing your IOSS service provider

    Getting a new IOSS number is one thing. Updating marketplaces, shipping platforms, customs data, and internal workflows without missed orders is another. This guide covers how merchants can switch IOSS numbers without disrupting EU sales.

    Read article →

  • IOSS & Shopify – EU sales made easy in 2026

    IOSS for Shopify: EU Sales Made Easy in 2026 | EAS
    Platforms & Partners

    IOSS & Shopify | EU Sales Made Easy in 2026

    Scale your international sales with the highest-rated IOSS solution for Shopify. Secure, automated, and Built for Shopify status.

    Built for Shopify | ★ 4.9 Rating

    The Shopify Community is full of merchants struggling with VAT. While Shopify is a powerhouse for international sales, IOSS is one of the few features it cannot provide natively. Setting up tax regions, overrides, and inclusive/exclusive pricing can be a nightmare for sellers to master.

    🎁

    Expert Tax Setup Included

    Tax settings in Shopify are notoriously difficult to get right. EAS IOSS customers enjoy free, expert tax configuration on their Shopify Stores to ensure absolute compliance from day one.

    What is IOSS & How Does it Relate to Shopify?

    The Import One-Stop-Shop (IOSS) is a simplified VAT collection solution for goods delivered from outside the EU to EU customers. It facilitates a “single-action” purchase where VAT is paid at checkout, allowing for faster “Green Lane” customs clearance.

    IOSS Essentials for Shopify (2026):

    • Orders under 150€: VAT is collected at the point of sale via Shopify Checkout.
    • No surprise fees: Eliminates the high customs clearance fees carriers charge at the door.
    • Mandatory Intermediary: Non-EU companies must appoint a representative like EAS.
    • One Report: File a single monthly return for all 27 EU member states.

    Why Choose EAS for Your Shopify Store?

    EAS is more than just an app; we are your technical compliance partner. Our Built for Shopify status means our integration is verified for speed, security, and performance. We also bridge the gap that Shopify leaves open regarding GPSR compliance, acting as your mandatory EU Authorised Representative.

    For more detailed technical guides, visit our Help Centre, where we cover everything from adding IOSS numbers to shipments to managing returns.

    Calculating the 150€ IOSS Threshold

    Mastering the threshold is vital. It is calculated on the intrinsic value (merchandise value) excluding taxes and shipping. Our app handles these complex calculations automatically, whether you use inclusive or exclusive pricing logic in your Shopify Markets settings.

    Full Automation & Setup
    Starting at 19,90€/ month

    Includes IOSS registration, Intermediary services, and Free Expert Shopify Tax Configuration. No hidden starting fees.

    Start IOSS Registration for Shopify

    View our Full Pricing Plans or manage compliance via the EAS Dashboard.

    How to Get Started?

    1. Register with EAS: Book your 15-minute registration meeting here.
    2. Install the App: Connect EAS to your Shopify admin for real-time automation.
    3. Let Us Configure: Our team will verify and set up your Shopify tax settings for you—free of charge.
    4. Sync Shipping: Input your new IOSS number into your preferred logistics providers.

    View All Plans  |  Help Centre  |  EAS Blog

    Automate Shopify IOSS with EAS

    Connect your Shopify store to automated IOSS registration, VAT calculation, reporting and intermediary services while keeping your checkout and tax settings configured correctly.

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    More Guides & Insights

    Continue exploring Shopify, IOSS and EU expansion to understand the costs, tax requirements and compliance workflows involved in selling across Europe.

    EAS vs. Shopify Markets Pro

    EAS provides a cost-effective alternative to Shopify Markets Pro, saving businesses up to 97% in expenses. Imagine a scenario where you can access more advanced features and benefits at a fraction of the cost of Shopify Markets Pro.

    Read article →

    How to Sell to Europe from the US with Shopify: VAT, IOSS & DDP Explained

    Selling from the US to Europe is a big growth opportunity for Shopify merchants. Getting VAT, IOSS, customs, and UK compliance right before orders start moving is another. This guide covers what US Shopify sellers need to know before expanding into the EU and UK.

    Read article →

    IOSS Registration & Intermediary

    Union OSS can simplify VAT reporting for EU sales. Making sure transactions, filing data, deadlines, and country-specific rates stay accurate is another. This step-by-step guide covers how merchants can manage Union OSS VAT filing with fewer errors.

    Read article →

  • IOSS for Shopify: enhancing cross-border sales 2025

    IOSS for Shopify: Cross-Border Sales Guide 2025 | EAS
    Shopify IOSS

    IOSS for Shopify: Enhancing Cross-Border Sales 2025

    In the realm of online retail, Shopify stands as a beacon of simplicity, but where does IOSS fit into this ecosystem?

    Contents

    The Import One-Stop-Shop (IOSS) is a transformative tool, yet, its integration with platforms like Shopify demands a closer examination by e-merchants.

    Setting up IOSS for Shopify sellers in a seamless manner may seem complicated, but with the right guidance, it can be easily accomplished.

    As an eCommerce business selling to Europe, it is essential to understand and comply with the new Import One-Stop Shop (IOSS) regulations. IOSS allows online sellers to collect and remit VAT for goods valued under €150 that are sold to customers within the European Union (EU). The IOSS system simplifies the VAT process and ensures a smooth cross-border selling experience.

    To set up IOSS on your Shopify store, begin by ensuring that your business is eligible for IOSS registration. Once eligible, you can register with an IOSS Intermediary, such as EAS, and obtain an IOSS number. This number serves as a unique identifier for your business, enabling you to properly collect and report VAT on qualifying purchases.

    Next, integrate the IOSS number into your Shopify store’s checkout process. You can do this by using the EAS IOSS app or by manually adding the IOSS number to your store’s tax settings. By providing the IOSS number, you inform customers that the VAT has been included in the purchase price, eliminating any unexpected import fees or delays.

    In addition to integrating the IOSS number, it is crucial to correctly calculate and apply the appropriate VAT rates for different EU countries. Shopify provides tools and resources to help you automate tax calculations based on customer location, reducing the risk of errors and ensuring compliance with each country’s VAT rules. EAS offers free of charge configuration service for all its customers.

    By following these steps and staying informed about any updates or changes to IOSS regulations, you can seamlessly set up IOSS for your Shopify store. This allows you to provide a smooth buying experience for your customers within the EU while ensuring compliance with VAT requirement

    With EAS you can fully automate your IOSS compliance from IOSS registration, to Shopify configuration and reporting and filing. Start by registering today, and you’ll be up and running within two days.

    Understanding IOSS for Shopify Merchants

    Shopify provides a robust platform fostering simplicity in global e-commerce operations, yet IOSS nuances demand additional attention from merchants. As e-commerce grows, so does the need for harmonised tax collection, to which IOSS provides a solution, easing cross-border sales for Shopify shoppers in Europe. Shopify, although feature-rich, does not inherently support IOSS; this necessitates merchants to seek external expertise to leverage IOSS benefits.

    Intricacies of the IOSS system can be daunting, but with the right guidance, Shopify merchants can seamlessly integrate this VAT scheme. The key is understanding that IOSS simplifies VAT obligations for sales under €150, making a once convoluted tax process remarkably straightforward. Registering for IOSS, albeit necessary for non-EU merchants, introduces another layer of complexity that requires an intermediary’s assistance for compliance.

    Embracing IOSS can propel a Shopify store’s appeal and efficiency in the EU market. Transparency in pricing alongside simplified customs procedures instils buyer confidence and expedites transactions, a significant upside for Shopify merchants aiming to thrive in a competitive international landscape.

    Benefits of IOSS

    Using IOSS (Import One-Stop Shop) offers several benefits for e-commerce businesses selling to Europe:

    • Simplified VAT Collection: IOSS streamlines the process of collecting and remitting VAT for goods delivered from outside the EU to EU end customers. It ensures that the VAT is paid at checkout, eliminating surprise fees for customers upon delivery.
    • Enhanced Customer Experience: IOSS improves customer satisfaction by providing transparency in costs. Customers do not need to deal with local customs or face unexpected fees, as everything is paid upfront. This can lead to reduced returns and increased customer loyalty.
    • No customs handling fees: Customs handling fees do not apply to IOSS deliveries. Without IOSS your customers face an extra charge of 5€ to 35€ per EU order.
    • Faster and Cheaper Deliveries: IOSS facilitates simplified customs processes and centralised clearance, allowing for faster and cheaper deliveries. Clearance can be done at any EU country instead of the destination country customs, resulting in shorter delivery times and lower costs.
    • Freedom to Choose Logistics Operators: IOSS is not tied to any specific logistics operator, giving you the freedom to choose your preferred delivery partners. Many common logistics operators for Shopify have the capabilities to handle IOSS numbers and shipments.

    Overall, using IOSS improves the buying experience for customers, reduces costs, and ensures compliance with VAT regulations. It can give your Shopify store a competitive edge in the EU market.

    The Essentials of IOSS Registration

    Registering for IOSS is crucial for non-EU merchants desiring sleek transactions with EU consumers. It demystifies VAT compliance for low-value consignments and provides a competitive advantage. A designated intermediary is essential to facilitate the registration and ongoing compliance process.

    To utilise IOSS, Shopify merchants must understand the eligibility criteria and integrate IOSS procedures within their checkout systems. This incorporation guarantees VAT is collected at the point of sale, ensuring a frictionless customer experience. Partnering with a trusted intermediary, such as EAS, streamlines this integration.

    IOSS registration enhances the EU customer’s purchase journey by eliminating unexpected costs.

    By aligning with IOSS, Shopify sellers not only adhere to EU tax regulations but also gain the ability to display all-inclusive prices. Transparency at checkout, facilitated by IOSS, correlates with customer satisfaction and loyalty, which are paramount for sustained success in the EU market.

    Identifying When to Use IOSS for EU Sales

    Discerning the optimal circumstances for IOSS integration is pivotal in streamlining VAT management for EU sales.

    • Orders dispatched from a non-EU country to a customer in the EU.
    • Each product’s intrinsic value, excluding taxes and shipping, is less than or equal to €150.
    • Transactions are business-to-consumer (B2C), excluding business-to-business (B2B) sales.
    • The merchant is registered for IOSS, either directly (for EU-based companies) or through an intermediary (non-EU companies).
    • Desire for expedited customs clearance and delivery processes.
    • Commitment to transparent billing, with all VAT charges included at the checkout stage.

    If your shipment matches these criteria, IOSS serves as the ideal solution.

    Implementing IOSS is a testament to prioritising customer clarity and satisfaction in the EU market.

    Integrating IOSS Into Your Shopify Store

    Incorporating IOSS into your Shopify store is a quintessential step for any e-commerce enterprise aiming for expeditious and efficient entry into the EU market. The integration process initiates with the acquisition of an IOSS registration number, which is applied during the checkout phase, ensuring the correct VAT is calculated and collected from your EU customers at the point of sale.

    To implement IOSS in your storefront, you first need to ensure compatibility with your current logistics setup, as well as compliance with the reporting obligations that IOSS necessitates. This may involve configuring your Shopify settings to handle VAT calculations correctly and establishing a system for the monthly IOSS reporting required by the EU tax authorities. Moreover, aligning your shipping processes with IOSS regulations is critical, as it will enable smooth customs clearance and an enhanced overall customer experience. As an EAS customer, you will be guided through the whole process.

    Setting Up IOSS on Shopify Checkout

    Integrating IOSS into your Shopify checkout streamlines VAT handling for your EU customers.

    1. Obtain an IOSS registration number through an IOSS intermediary service like EAS.
    2. Install the compatible Shopify app provided by your IOSS intermediary to automate VAT calculations.
    3. Input your IOSS number into the Shopify app to ensure proper tax collection during checkout.
    4. Configure your product prices to reflect whether VAT is included or to be added at checkout.
    5. Adjust your shipping settings on Shopify to align with IOSS requirements for eligible orders.
    6. Test the checkout process to verify that the IOSS number is correctly applied and VAT is accurately assessed.Seamless checkout is vital for customer trust and retention.The correct setup ensures compliance, swift deliveries, and a transparent purchasing process.

    Choosing Compatible Logistics Partners

    Selecting the appropriate logistics partners is essential for leveraging the full benefit of IOSS integration within your Shopify environment. The fidelity of these services can significantly impact delivery times and customer satisfaction.

    Ensure your chosen courier supports IOSS delivery and reporting. This alignment helps expedite the customs clearance process succinctly. Most of the couriers and postal operators support IOSS deliveries.

    Your logistics partner must have a well-established procedure for handling IOSS shipments to guarantee that your goods will be processed swiftly and accurately upon reaching EU borders. It is paramount they have structures in place to correctly manage and convey IOSS information, thus avoiding delays or complications.

    To find the most suitable logistics partner, consider their experience with e-commerce transactions within the EU and most importantly, their proven track record of handling shipments under the scheme. A robust logistics partner will be well-versed in facilitating IOSS procedures, ensuring that your products are delivered with the utmost efficiency and compliance. EAS recommends using DHL, Royal Mail and other well-established service providers.

    Calculating IOSS Thresholds Accurately

    Precision in determining the IOSS threshold is essential for compliance and customer transparency. For products with VAT included in their price, this involves deducting VAT to find the intrinsic value prior to reaching the 150€ threshold, which varies across EU member states. Missteps in this calculation could lead to incorrect VAT collection, affecting customer charges and potential liabilities.

    Correct threshold application is critical to avoid the pitfalls of under or overestimating your obligations. Remember, the threshold applies to the value of goods excluding VAT and shipping; ensure this is thoroughly assessed to safeguard against unnecessary complications arising with EU tax authorities.

    EAS helps you to set up automatic IOSS Threshold calculation to your Shopify Store.

    Inclusive vs Exclusive VAT Pricing

    When setting your prices, you’ll need to decide on using either inclusive or exclusive VAT pricing. Inclusive pricing means VAT is already factored into the displayed price.

    In contrast, exclusive VAT pricing delineates a clear separation between the product price and the added tax. Here, the price shown to the customer is without VAT, which is then calculated and added during checkout. This approach is not common way of displaying prices within European Union..It may lead to higher perceived costs at the point of payment, potentially impacting purchasing decisions.

    Inclusive pricing, is more straightforward, your customers know the final price or your products from the very moment they land on your website. From data EAS has collected, this approach is giving better checkout conversion.

    To summarise, the choice between inclusive and exclusive VAT pricing is not trivial. It impacts both customer perception and business operations. Inclusive pricing simplifies the initial customer experience. Exclusive VAT pricing ensures the tax is clearly outlined for the end customer but may create a sticker shock when the additional costs are tallied at checkout, affecting overall purchase satisfaction.

    Applying the 150€ Threshold to Your Products

    Accurately applying the 150€ IOSS threshold necessitates an understanding of VAT-inclusive and exclusive pricing for your products.

    • Identify VAT Method: Determine if your product prices are inclusive or exclusive of VAT, which impacts the threshold calculation.
    • Calculate VAT-Exclusive Price: For inclusive pricing, extract the VAT to find the VAT-exclusive cost using the formula: Price / (1 + VAT rate).
    • Assess IOSS Eligibility: Compare the VAT-exclusive price with the 150€ threshold to confirm if the order qualifies for IOSS. For VAT-exclusive pricing, simply verify that the pre-tax product price stays below the 150€ limit. Remember, this threshold applies per order, not per item, factoring the cumulative value of goods in a single transaction.

    Finding and Working With an IOSS Intermediary

    The choice of an appropriate IOSS intermediary is instrumental for non-EU entities aspiring to streamline their sales into the European Union. The intermediary acts as a fiscal representative, navigating the complexity of VAT registration, collection, and reporting on your behalf. Their expertise and reliability are paramount; hence, meticulously assess their reputation, capabilities, and compatibility with your business model.

    Securing a proficient IOSS intermediary can dramatically enhance your operational efficiency and compliance with EU tax regulations. Trustworthiness and comprehensive service offerings should guide your selection, ensuring seamless integration with your existing eCommerce ecosystem and the full utilisation of the IOSS framework for a frictionless customer experience.

    Selecting a Reliable IOSS Service

    Choose your IOSS intermediary with discernment.

    When researching potential IOSS intermediaries, it’s imperative to consider several key factors. Firstly, verify the expertise and track record of the service provider. A reliable intermediary should have a robust understanding of EU VAT legislation and the specific needs of eCommerce entities. Moreover, they should have a proven history of assisting companies with the seamless implementation of IOSS and addressing any complications that arise. You can read what EAS customers are saying about us at Shopify App Store

    Ensure technical integration is seamless.

    A proficient intermediary will facilitate an effortless technical integration. They should offer bespoke solutions that align with your Shopify store, simplifying the IOSS registration and reporting processes. This integration is crucial to maintain the efficiency of your eCommerce operations and to ensure VAT compliance across the EU.

    Assess support and customer service quality.

    Evaluate the intermediary’s customer support infrastructure. Even with an effective technical system in place, you will encounter scenarios where you require personal assistance or advice. The best service providers offer prompt and knowledgeable support that helps you navigate the complexities of cross-border VAT management.

    Regular compliance updates are vital.

    It’s necessary to ascertain that your intermediary stays abreast of the latest regulatory changes and that their systems are updated accordingly. The dynamic nature of tax legislation in the EU means that your business must remain compliant with the most recent VAT rules, and a capable IOSS service provider will ensure this, safeguarding your business against potential non-compliance issues.

    EAS Integration and Its Advantages

    EAS is the leading and highest rated IOSS solution for Shopify, trusted by thousands of Shopify Merchants. With EAS, you can achieve full automation for EU and UK VAT compliance.

    Streamlined IOSS Management enhances your approach to fulfilling EU VAT obligations through EAS integration. It ensures a seamless operational flow within your digital storefront.

    The EAS Shopify App augments your platform’s capabilities, allowing for quick IOSS number incorporation, VAT calculations and simplifying fiscal responsibilities without disrupting user experience or backend processes.

    Comprehensive Support Structure provided by EAS ensures real-time assistance, vital for efficiently navigating the nuances of IOSS regulations and for providing peace of mind.

    Advanced Automation Technologies within EAS reduce manual input errors, accelerate VAT reporting accuracy, and ultimately optimise the financial operations of your European transactions.

    Automated VAT corrections in case of returns and post-purchase discounts. EAS identifies automatically if your EU order has been returned, and corrects your IOSS report. With EAS, you never have to pay taxes for returned items.

    Leverage EAS’s integration to enhance customer satisfaction and bolster confidence in your EU market presence with full VAT compliance and uncomplicated payment processes.

    IOSS FAQ for Shopify Merchants

    Here are some frequently asked questions about IOSS for Shopify merchants:

    1. What is IOSS and why is it important for Shopify merchants in Europe?

    IOSS stands for Import One-Stop-Shop, and it is a system that simplifies VAT obligations for cross-border sales under €150. It is important for Shopify merchants in Europe because it allows for seamless international transactions, improved customer experience, and compliance with EU tax regulations.

    2. Does Shopify natively support IOSS?

    No, Shopify does not natively support IOSS. Merchants need to seek external expertise, such as an IOSS intermediary like EAS, to integrate IOSS into their Shopify stores.

    3. What are the benefits of integrating IOSS with Shopify?

    Integrating IOSS with Shopify offers benefits such as transparent pricing for EU customers, simplified customs procedures, faster delivery times, improved buyer confidence, and increased efficiency in the EU market.

    4. How do I register for IOSS as a non-EU merchant?

    To register for IOSS, you need to work with an IOSS intermediary like EAS. They will assist you in the registration process and ongoing compliance, ensuring smooth transactions with EU consumers.

    5. When should I use IOSS for EU sales?

    You should use IOSS for EU sales when the following criteria are met:

    • Orders are dispatched from a non-EU country to a customer in the EU.
    • Each product’s intrinsic value, excluding taxes and shipping, is less than or equal to €150.
    • The transactions are business-to-consumer (B2C) sales.
    • You are registered for IOSS, either directly or through an intermediary.
    • You desire expedited customs clearance and delivery processes.
    • You are committed to transparent billing, with all VAT charges included at the checkout stage.
    6. How do I integrate IOSS into my Shopify store?

    To integrate IOSS into your Shopify store, you need to:

    • Obtain an IOSS registration number through an IOSS intermediary like EAS.
    • Install the compatible Shopify app provided by your IOSS intermediary for automated VAT calculations.
    • Input your IOSS number into the Shopify app to ensure proper tax collection during checkout.
    • Configure your product prices to reflect whether VAT is included or added at checkout.
    • Adjust your shipping settings on Shopify to align with IOSS requirements for eligible orders.
    • Test the checkout process to verify correct application of the IOSS number and VAT assessment.
    7. How do I calculate IOSS thresholds accurately?

    To calculate IOSS thresholds accurately, you need to:

    • Identify if your product prices are VAT-inclusive or VAT-exclusive.
    • For VAT-inclusive pricing, deduct the VAT to find the VAT-exclusive price.
    • Compare the VAT-exclusive price with the €150 threshold to determine IOSS eligibility
    8. What’s the difference between IOSS and OSS?

    IOSS (Import One-Stop-Shop) and OSS (One-Stop-Shop) are both VAT collection and reporting solutions, but they have different scopes and purposes.

    IOSS specifically applies to goods delivered from outside of the EU to EU end customers. It is designed for B2C (business-to-consumer) transactions and is used for orders with a value under 150€. IOSS allows sellers to collect, declare, and pay VAT at the point of sale, providing a simplified customs process and improving the customer experience.

    On the other hand, OSS is a broader system that applies to intra-EU sales of goods and services. It is used for both B2C and B2B (business-to-business) transactions. OSS allows sellers to declare and pay VAT for all their EU sales in a single EU member state, simplifying the VAT compliance process for cross-border transactions within the EU.

    In summary, IOSS is specifically for non-EU sellers delivering goods to EU customers, while OSS is for sellers operating within the EU and making sales within the EU.

    9. What if I use marketplaces?

    When selling through a marketplace, such as Etsy or Amazon, you do not need to obtain an IOSS number yourself. Marketplaces or electronic interfaces are responsible for VAT liabilities in these cases. Therefore, it is the marketplace’s IOSS number that should be used when the sale is generated through a marketplace. EAS always recommends having your own online store, for higher margins, brand-building purposes and creating stronger customer relationships.

    10. Does Shopify use IOSS?

    Shopify, as an eCommerce platform, does support IOSS (Import One-Stop Shop).

    Shopify merchants are required to register for IOSS with a third-party solution provider. As the market leader in IOSS compliance, EAS offers comprehensive solutions for IOSS registration. Our monthly plans always include IOSS registration, ensuring that you can easily meet the necessary requirements for selling to EU customers.

    11. Is an IOSS number free?

    IOSS registration is always included in all our EAS plans. See EAS pricing here

    12. Where can I get IOSS number?

    All you need to do is to register with EAS and you have an IOSS number almost immediately! Start the process here

    13. Is there a minimum or maximum overall threshold for IOSS?

    No, even tho there is misinformation online about 10,000€ threshold with IOSS. Every single consumer item sent to EU is VAT taxable. If you do not handle the compliance, your customers would have to do it instead. If the compliance is left for the consumer, customs delays and customs handling fees apply.

    Start Selling to the EU with IOSS

    EAS helps Shopify merchants automate IOSS registration, VAT calculation, reporting, and filing so you can focus on growing your business.

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  • VAT & OSS, threat or a possibility

    VAT OSS: EU Special VAT Schemes for Sellers | EAS
    VAT & IOSS

    VAT OSS, threat or a possibility?

    A practical look at OSS, IOSS, EU VAT schemes, and what they mean for online sellers.

    If you have anything to do with online commerce, you have heard of the new One-Stop-Shop, the EU special VAT schemes. The EU Commission introduced e-commerce package was enforced on 1st July 2021 with good intentions of facilitating a single, harmonious EU market without allowing some unscrupulous actors to avoid paying VAT.

    You can sell to all EU countries at destination VAT rates without being VAT registered to all of them separately is certainly removing artificial barriers to trade!

    Or, if you deliver from outside of EU you can do so with ease as long as the product is under 150€ using IOSS. There are a multitude of solutions available for the more expensive items, for example from couriers, but do check the pricing supports your pricing!

    EU special VAT scheme benefits

    EU special VAT schemes facilitate access to 445 million affluent EU customers. According to studies, even not having another language has the expats loving to purchase from your wonderful store!

    And to make it easier, EAS automates all of that for you without monthly or annual costs!

    So yeah, talking about a no brainer. Now on with it, conquer EU!

    EU special VAT scheme Q&A

    1. Should I register for the VAT schemes?

    YES! They facilitate better customer experience in addition to keeping you compliant and out of trouble! Check out the pricing here.

    2. When should I register for IOSS?

    Immediately when you start importing goods from outside of EU to EU end-customers.

    3. As an EU company, can I register for IOSS?

    Yes. You can do it yourself at your national tax administration portal.

    4. As a non-EU company, can I register for the IOSS?

    You can register for the IOSS via an Intermediary who will then handle correspondence and payment on your behalf.

    5. As an EU company selling digital goods, should I register for non-Union scheme?

    No, that is purely for non-EU companies. You report intra-EU cross-border sales of digital and physical goods with OSS.

    Register with EAS

    Automate OSS, IOSS, and EU VAT compliance so you can sell across Europe with less manual work.

    Register with EAS Learn more about IOSS View pricing Book a meeting Subscribe to Newsletter

    More Guides & Insights

    Continue exploring EU VAT and the different schemes available to online sellers.

    EU VAT for Beginners

    EU VAT for Beginners: Simple Steps to Automated VAT Compliance Welcome to your beginner’s guide to EU VAT. VAT—Value Added Tax—applies throughout the European Union.

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    VAT registrations, why are there so many?

    VAT registration can feel like one rule with too many versions. Knowing when you need local VAT, OSS, IOSS, or another scheme is another. This guide covers why there are so many VAT registrations and how merchants can choose the right path.

    Read article →

    Non-Union Scheme: what kind of animal is it?

    The Non-Union scheme can sound like another confusing VAT shortcut. Knowing when it applies, who can use it, and how it differs from IOSS or OSS is another. This guide covers what non-EU sellers need to understand before choosing the right VAT route.

    Read article →