London, England – February 23, 2019: Customs, VAT Exports, Commercial Exports and Border Control at Terminal 5 at London Heathrow Airport, England, United Kingdom, Europe

IOSS and UK VAT Compliance for US Shopify Stores

As a Shopify store owner in the US, you are undoubtedly interested in selling your goods to the EU and UK markets. Since e-commerce sales in these markets have grown massively and will continue for years to come, the opportunity for US brands to make a profit is significant. This is also why your company should be informed and aware of IOSS and UK VAT and have a solution to handle compliance for your company correctly.   

What are the current European Union import regulations?

Current EU import regulations are different from those before July 2021. Now US sellers must collect VAT on all goods they sell to the EU customers; the difference was that before, goods valued at 22 euros or less were Import VAT exempted. Therefore, you now need to determine the VAT rates of specific goods for all the EU countries you deliver to.

Additionally, you must declare in-customs all goods entering the EU regardless of their value. This means that when you sell to a customer located in any of the 27 EU members, the parcel must come with a customs declaration form.

What is IOSS and how can BorderGuru help me with cross-border selling to the EU?

The Import One-Stop-Shop (IOSS) is an electronic portal that eases the process of complying with VAT e-commerce obligations on imported goods valued < 150 EUR. With IOSS, you do not have to register in each EU country where you sell your products. Instead, you only pay the country of registration and then the authorities are in charge of distributing the taxes to the local tax authorities in which the customer is located; this makes the collection, declaration and payment of the VAT for US sellers easier.    

Even though IOSS intends to make this process easier for non-EU brands, they still need to deal with VAT registration, finding a local fiscal representative, collecting taxes from customers, recording and filing, etc.  

With BorderGuru, compliance with EU tax authorities becomes a simple task for your business. BorderGuru imports into the EU, which helps your company eliminate the complexity of selling and sending to the EU. Here are some benefits of using BorderGuru: 

  • We represent you before EU tax authorities  
  • We provide you with an IOSS number  
  • We provide HS codes   
  • We calculate taxes and duties to be paid at the checkout by your customers   
  • We file your business` taxes on your behalf and keep a record  
  • We offer custom cleared orders 
  • We guarantee the accuracy of our calculation at checkout

What about UK VAT and how can BorderGuru support you?  

Since the UK separated from the EU, it has import tax regulations. HM Revenue & Customs (HMRC) is responsible for tax collection and regulation. If the products you sell to UK customers cost more than135 GBP, you must register your business and pay taxes to HMRC.   

BorderGuru helps you make this process easy for your business, so you do not have to worry about dealing with it on your own and instead focus on selling and connecting with more UK customers.   

We provide you with the same benefits as with the EU, such as UK VAT number, we calculate, file and record taxes and duties, and provide your customers with custom cleared orders. We guarantee the accuracy of our calculation at checkout.   

BorderGuru offers a complete cross-border solution that helps you with IOSS and UK VAT compliance and allows you to ship to 200 countries at a competitive price, calculating tax and duties at checkout and providing customs cleared orders. Additionally, it is effortless to integrate into your Shopify online store.   

If you want to bring your cross-border sales to the next level, get in touch with us! 

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