Banish Brexit Blues!

We recently helped a client who does a lot of cross-border trade simplify their VAT processing by implementing Taxamo.

Non-EU businesses selling physical goods to consumers in the EU by default are required to register for VAT in each EU territory they sell to, and complete a VAT return for each registration.  Either that or require their customers to pay VAT on imports, which of course is a bad user experience and does not lead to happy customers.

This is clearly a massive administrative overhead with significant costs attached and one that has led many companies to abandon selling to the EU.

However, there is a solution. If the order value is below a threshold of 150 euros, then a thing with the catchy name of Import One Stop Shop (IOSS) can be implemented. With this in place, shipments are not subject to excise duties so there's no need to register for VAT in every country you ship to, and the customer won't be getting any unexpected and unwelcome bills when the order is delivered.

To help with this providers such as Taxamo provide an electronic interface that can be integrated into an existing checkout that takes away the burden of the paperwork necessary for IOSS, allowing friction-free sales into the EU.

We implemented Taxamo for a customer recently by building them nopCommerce plugin and it's incredibly successful - saving enormous administrative overheads and removing the possibility of costly investigations by the authorities.

Drop us a line to find out more.