If you’re a non-EU business selling physical goods to consumers in the EU, you are responsible to charge VAT on your sales and remit VAT to each country.
It can be complicated to manage the VAT calculations and monthly filings to the various countries according to their regulations. VAT errors can incur penalties to your business, or even result in VAT due by your customer at delivery (which would certainly impact your customer relationships).
Non-compliance with the latest VAT regulations in the EU can result in penalties to the seller. Additionally, if the seller does not charge the correct VAT amount the EU recipient must pay the import VAT (plus handling/clearance fees) prior to parcel delivery. This could result in recipients refusing delivery of the parcel, which could cause disruptions and increase costs throughout the supply chain. It could also negatively impact customer relationships.
Once registered, sellers integrate the cloud based Taxamo Assure solution to their e-commerce platform to pass the required transaction data for EU VAT determination and compliance.
We strive to enable easy integration of Taxamo Assure with your existing technology. Assure is available as a plug-in for popular ecommerce check-out processes and can also be integrated with our out-of-the-box API.
Cost for the Taxamo Assure service is £2 per-parcel regardless of your parcel weight or size. There’s no up-front fee for the service, and your cost scales as you grow. Once you register and integrate Taxamo Assure, just keep selling with no VAT worries!
What are the new VAT regulations for low-value goods?
As of July 1, 2021, items imported into the EU with a value of €22 or less will no longer be exempt from VAT. The VAT amount due for each parcel is subject to the local VAT rate of the customer's delivery country
What are the consequences of non-compliance or incorrect VAT payments?
Non-compliance with the latest VAT regulations in the EU can result in penalties to the seller. Additionally, if the seller does not charge the correct VAT amount the EU recipient must pay the import VAT (plus handling/clearance fees) prior to parcel delivery. This could result in recipients refusing delivery of the parcel, which could cause disruptions and increase costs throughout the supply chain. It could also negatively impact customer relationships.
What is IOSS and do I need to register for that?
As of July 1, 2021, the EU introduced a scheme called the “Import One Stop Shop” (IOSS). IOSS allows taxpayers to register with just one of the 27 EU tax authorities, and submit one monthly IOSS VAT return to facilitate the VAT payments to other EU tax authorities where they are due. Sellers who register for Taxamo Assure do not need to register for IOSS or file returns/reporting each month since Taxamo Assure becomes the deemed seller and files all VAT reporting.
What if I sell a high volume of parcels into the EU?
If you have a higher volume of consignments (3000+ a year) to consumers in the EU, you may be better suited for Deloitte’s IOSS Registration and Filing Service which charges an annual fee rather than per-parcel fee. Learn more about the service.
What e-commerce platforms is Assure available on?
Currently Assure is available via a plug-in with Magento, and with direct API integration to your checkout. We are not currently able to integrate with Shopify due to limitations/restrictions with their checkout. We are constantly exploring opportunities and deploying additional integrations to widen availability on other popular e-commerce platforms . If you have questions about the e-commerce platforms supported by Assure, email assuresupport@taxamo.com
What if I am selling digital goods and services?
Taxamo Assure can also be deployed to support the sales of digital goods and services (B2C and B2B). Learn more and connect with us to discuss how Assure can support your digital sales.
What does Taxamo Assure cost?
Cost for the Taxamo Assure service is £2 per-parcel regardless of your parcel weight or size. There’s no up-front fee for the service, and your cost scales as you grow. Once you register and integrate Taxamo Assure, just keep selling with no VAT worries!
I am from Northern Ireland (NI). Is this relevant for me?
When an e-commerce seller in NI sells goods to consumers in the EU, NI is treated as a member of the EU which means the seller is not “importing” into the EU. Therefore, the new VAT regulation for goods valued less than €22 does not apply.
Where can I learn more about IOSS?
