EU VAT changes
The specifics for VAT settings with the EU going forward from the 1st of July is that any business sending anything to the EU will need to register for VAT in one EU Country. We are registering in Ireland (possibly the Netherlands).
All businesses will need to collect VAT on EU sales that are under €150 (£130). All sales over that figure do not accrue VAT and are collected from the customer by the Customs department of the receiving Country.
We will need a system that triggers VAT on all EU Country sales under £130, everything else can be VAT free. This will be true for any business in the UK that wants to sell anything to any EU based consumer so I am surprised you have not sorted software for this already. There is just under 7 weeks to go so it is pretty urgent...
Comments: 12
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12 May, '21
Craig MonkEmbarrassingly i've been aware of these changes, but not looked into it. And I know I need to, and will do, for my business.
some of the EU Countries have different VAT Rates, and some last year reduced their VAT temporarily (Austria I think dropped it to 10%), so this will be interesting to sort out. -
28 May, '21
Matt BA good half (or more) of our sales are into the EU, and of products that are VAT-free here. An IOSS plugin like the above would be a godsend.
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31 May, '21
Brigitte GraberAs a company based in the EU and using EKM, we urgently need the VAT at the customer's local rate in the shop!
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07 Jun, '21
Matt BroadheadWe've been absorbing EU VAT charges (our stock is zero-rated in the UK) for several months. We really need a way to vary tax rates geographically! (And not necessarily just standard rate per country, as our products are reduced rate in some countries.)
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08 Jun, '21
Eve Bolan Admin"Comply with New EU VAT Regulations from 1st July 2021" (suggested by Sharon on 2021-05-27), including upvotes (2) and comments (0), was merged into this suggestion.
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08 Jun, '21
DougNot all tranasaction, understood it was if you had over 10,000 euro threshold across the whole of EU (no longer individual country limits )
Also need to consider the limit would not be set at EKM shop as you may have 5k direct 4k via eBay and only 1.5k via EKM store so 10k5 total before kicks in. -
09 Jun, '21
JoTo register and use IOSS effectively we need to collect EU VAT for any sale regardless of the value. We are losing sales at the moment as our EU customers want to know exactly how much the delivered item will be. We need to be able to add the relevant VAT rate for each EU country.
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16 Jun, '21
ChrisAre EKM are considering implementing a 3rd party API such as Taxamo Assure to deal with EU VAT payments on a "Pay As You Go" basis?
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24 Jun, '21
Dauwalders of SalisburyWill EKM be upgrading the current tax system within the platform?
Currently, the EKM platform won’t have any native support for these changes on the 1st July 2021. To combat this, a large piece of work is being undertaken to revamp the existing Tax settings functionality for both the EU and US tax systems. We don’t currently have a timeline on this project due to the large amount of work and complexity involved in the project. As always, we recommend that you get in touch with your accountant or financial advisor for any specific questions regarding the IOSS Scheme, the VAT update and how this may apply to your own business.
Business as usual then! -
19 Jul, '21
ChrisInfo from the Royal Mail's site https://www.royalmail.com/business/international/guide/delivered-duties-paid-ioss
about Import One Stop Shop (IOSS) and Postal Delivered Duties Paid (PDDP)
"If you’re registering yourself or using the Deloitte solution, a landed cost calculator integrated into your checkout is necessary.
If you’re using the Taxamo solution, it isn’t and they will manage calculation and filing of tax for you."
Therefore it seems that we would need 2 different solutions from EKM to work with the above 2 options i.e.
1) For larger stores who can afford to pay for an IOSS intermediary (around £2000/year) : a landed cost calculator integrated into the checkout &
2) for smaller stores : integration for Taxamo Assure's "Pay As You Go" option (at £2 per order).
It seems to me that neither of these options would require the EKM platform to update their own existing Tax settings functionality? -
01 Sept, '21
Karen HannantThis week we have started to get orders bouncing back to us from Ireland (even those sent by Royal Mail, Tracked and Signed delivery) as they won't get through customs anymore without an IOSS number (that is our understanding). Is anyone successfully using Taxamo with their EKM shop or can recommend another solution other than cancelling all sales to Ireland? If I'm posting in the wrong place can anyone direct me to the right place please?
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29 Aug, '23
Eve Bolan Admin"Northern Ireland vat charges" (suggested by Przemyslaw on 2023-08-18), including upvotes (2) and comments (0), was merged into this suggestion.