Hello,
I am just wondering if Nitrosell is aware of the July 1st 2021 change to the way we can charge tax to EU customers on the web with the International One Stop Shop and whether there are plans to enable this for Nitrosell customers?
https://ec.europa.eu/taxation_customs/business/vat/modernising-vat-cross-border-ecommerce_en
Thanks,
Emma
Hi Emma,
I read about those changes and it would appear that most changes would require additional reporting that can be done through POS reports. Some of the changes have to do with how retailers are registered for VAT in countries that they sell to.
We didn’t intend on introducing any changes regarding this however we are always open to suggestions for new features that could make reporting or using the IOSS easier.
Regards,
Peter
Hi Peter,
Thanks, I’m sure we’d be able to work out how to do the reporting - at the moment we have to keep copious records for export sales to satisfy our own tax authority why we haven’t charged domestic tax.
We believe the website would need development as there is a threshold below which we would charge tax at the checkout and above which we wouldn’t. That threshold is goods value (excluding shipping) up to 150 euros. (Also we’d have to use the tax rate of the destination country not the UK but I assume the website can cope with this aspect?).
There are some very clear advantages for the consumer to pay the tax to us at checkout rather than during the transit process as it means they a) know how much it will be up front, b) they won’t have to pay a customs handling charge and c) transit time will be quicker. Also, I’m ASSUMING it will mean they can get a tax refund if they return items to us - at the moment they can’t recover this part of the cost of goods - that was a shock! However its hard to find details about how consumers can return items internationally and we need better information and for couriers to get better at it too.
DPD have produced an excellent factsheet that is easier to read than the EU documentation - happy to send that to you as it won’t let me upload it here (pdf).
There are lots of elements that need to be in place to get this right (including the customs paperwork generated by shipping interface) and its certainly not something to rush into, but it seems a simplification for the consumer which can only ultimately benefit us. We don’t want to be left behind if this becomes commonplace amongst other retailers.
Emma
Hi Emma,
Thank you for the explanation. I was looking into it myself and it seems that there would need to be a rule in place to override tax calculation for international sales up to 150euros. Would you be able to send the DPD documents to me at support@nitrosell.com?
I’ll go over them and see if there’s more to it that would require development.
Regards,
Peter