European countries are implementing rules that make importing e-commerce more clear and consistent across all countries. For orders less than €150 (around CA $220), it is mandated that VAT be collected at point of check out. The goods can then be cleared using streamlined "green channel" for faster clearance and - most important for e-commerce sellers - no consignee fees.
Value-added tax (VAT) is a consumption tax that is added to the price of goods and services in the European Union (EU). In the context of e-commerce imports, VAT is applied to goods that are purchased from non-EU sellers and imported into the EU.
Jet Worldwide offers a range of shipping services for e-commerce businesses to ship their products to Europe. These services are designed to help businesses efficiently and reliably deliver their goods to customers across various European countries.
The VAT rate applied to imported goods depends on the country where the goods originate and the country where they are being imported into. Generally, the VAT rate applied to imported goods is the same as the VAT rate that applies to similar goods that are sold domestically.
Import One-Stop Shop (IOSS) is a system across the EU that streamlines the process of collecting and remitting Value Added Tax (VAT) e-commerce goods imports.Non-EU sellers registered under IOSS can collect and remit VAT on their sales to EU customers.
The VAT is collected at the point of sale.The seller then remits the VAT to the EU. This simplifies the process.Customers do not need to pay VAT upon delivery and sellers can offer a more seamless shopping experience.
Green Channel Import and IOSS import VAT simplified reporting
IOSS will be a quarterly filing submitted to a tax authority in the same format as the VAT OSS. IOSS allows Canadian sellers to register in on EU country and sell across the entire EU: One set of reporting and one consolidated payment.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and provided “as is”; no representations are made that the content is error-free.
Shipping Europe: Opportunity for Canadian E-commerce
The import regiment into Europe is actually a great opportunity. European consumers understand having to pay VAT and, in fact, charging it at checkout brings credibility.
Furthermore, knowing your goods will be delivered to your customer without additional or hidden import fees is huge! Contact Jet's team to see how you can build a direct shipping solution to the European Union and UK.
VAT Rules for e-commerce Imports to the European Union from Canada
Note: Registration for IOSS is not mandatory for e-commerce sellers shipping from Canada or the US to a specific country. A seller who ships only to France from Quebec, for example, can choose to pay the VAT at time of import and not have to register for IOSS.
Introduction of IOSS Processes and portal
Import One-Stop Shop: E-commerce shipments valued under EUR 150 can be imported via One-Stop Shop (IOSS) processes that allow sellers and online marketplaces to charge VAT at the point of sale and remit it directly to the authorities.
- If the IOSS is not used, the VAT will be charged to e-commerce customers by the importing carrier (plus an administrative/ pre-payment fee).
The Canadian e-commerce businesses and marketplaces will be able to register for a VAT account in only one EU country. Currently, sellers have to register in each country they sell and ship to.
Collection of VAT from point of Sale by marketplaces and online sellers
Online marketplaces or direct to consumer (DTC) individual sellers (who do not use an online marketplace) are the responsible party for collecting VAT for orders up to €150.
- Online merchants using several marketplaces to should keep records of their sales corresponding to the IOSS number/ customs declarant used for the transaction.
The IOSS applies to online sales to all EU countries and Northern Ireland
EU countries include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. EU VAT rules for Northern Ireland are established in the EU-UK Joint Protocol.
Canadian companies and e-commerce sellers can access register via the IOSS portal of an EU Member.
Businesses not already established in the EU will likely need to appoint an EU-established intermediary to fulfill the VAT obligations.
For details on IOSS and the otherEU’s VAT rules, visit: Publications Office of the European Union.
Facilitating IOSS Registration and Integrated Shipping to EU
- Get an approved account with Jet
- Register for IOSS
- Ship direct to consumers in Europe
- Lowest cost, tracking, and no import fees charged to consignee
EORI Number for Business Importers to Europe
IOSS is designed for e-commerce orders to individuals. When shipping from Canada to Europe it is important to verify the EORI number of the consignee if shipping to a business.
An Economic Operators Registration and Identification number (EORI number) is an E.U. identification number for businesses (economic operator) which import or export of goods into or out of Europe and part of the data set required for customs entries in all EU countries.
The EORI number exists out of two parts:
- the country code of the issuing Member State; followed by
- a code or number that is unique in the Member State
Jet Worldwide provides Canadian and global logistics. Our support refers to the various systems and services regarding international and Canadian movement of e-commerce orders. This includes things like transport, import, storage, and last mile delivery. Our logistics support augments your team by not being beholden to a specific carrier or process.
- Parcel shipping solutions from Canada/ US to Europe / UK for online orders
- Delivery VAT and Duty paid import for B to C e-commerce consignments
- World class logistics support
Shipping Online Canadian E-Commerce Orders to Europe
Jet has shipping solutions for sellers who use a marketplace as well as direct to consumer transactions.
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