The Ultimate Guide to Etsy IOSS for EU Orders

The Ultimate Guide to Etsy IOSS for EU Orders

Table of Contents

1. Introduction
2. Changes to Shipping to the EU
3. Import VAT for Orders to the EU
4. UK VAT and Royal Mail Handling Fee
5. Import One-Stop Shop (IOSS) for Etsy Sellers
6. Collection of Import VAT by Etsy
7. How to Declare the Import VAT
8. Obtaining the IOSS Number from Etsy
9. Writing the Order Value in Euros
10. Using Etsy Shipping Labels for IOSS Integration
11. Limitations of UK Post Office Stores

Changes to EU Shipping and Import VAT: Demystifying the New Regulations

In this article, we will discuss the recent changes that have been implemented for shipping to the European Union (EU) and the implications for both sellers and buyers. As of July 1st, a new system has been put into effect, causing some confusion among sellers and customers. We will explain the changes in detail and provide guidance on how to navigate the new requirements seamlessly.

1. Introduction

With the recent changes in EU shipping regulations, it is essential for sellers to understand and adapt to the new requirements. In this section, we will provide a brief overview of the changes and who they affect.

2. Changes to Shipping to the EU

In this section, we will delve into the specific changes that have been made concerning shipping to the EU. We will address the implications for both UK sellers and sellers based in other non-EU countries.

3. Import VAT for Orders to the EU

Under the new regulations, import VAT must be paid by the buyer for all orders under 150 euros. Previously, this threshold was set at 22 euros. We will discuss the impact of this change and how it affects sellers and buyers.

4. UK VAT and Royal Mail Handling Fee

UK citizens are already familiar with the concept of import VAT and the associated handling fee. However, with the implementation of the new regulations, the EU now has its own system in place. We will explore the similarities and differences between the UK VAT and the EU VAT.

5. Import One-Stop Shop (IOSS) for Etsy Sellers

Etsy has taken steps to simplify the process for sellers by signing up for the Import One-Stop Shop (IOSS). This system allows sellers to collect and record the import VAT on behalf of their customers. We will explain how this benefits both sellers and buyers.

6. Collection of Import VAT by Etsy

In this section, we will discuss how Etsy collects the import VAT from buyers and the process they follow to ensure compliance with the new regulations. We will also address any concerns or questions sellers may have regarding this new responsibility.

7. How to Declare the Import VAT

To avoid double-charging buyers for import VAT, sellers need to declare that the tax has already been paid. We will provide a step-by-step guide on how to do this, ensuring a smooth and hassle-free process for sellers.

8. Obtaining the IOSS Number from Etsy

The IOSS number is a crucial piece of information that sellers need to provide to their postal service. This number ensures that the customer does not pay import VAT twice. We will explain how sellers can obtain this number from Etsy and the importance of including it in the shipping data.

9. Writing the Order Value in Euros

To comply with the new regulations, sellers are advised to write the order value in euros on the package. We will explore different methods for doing this and provide recommendations on the best approach.

10. Using Etsy Shipping Labels for IOSS Integration

Etsy offers a seamless integration with the IOSS for sellers who use their shipping labels. In this section, we will discuss how this integration works and the benefits it provides, saving time and effort for sellers.

11. Limitations of UK Post Office Stores

Unfortunately, UK Post Office stores are currently unable to apply the IOSS data to customs declarations. Sellers who usually purchase their shipping labels from these stores will need to find alternative solutions. We will discuss the limitations of UK Post Office stores and potential alternatives for sellers.

By understanding and adapting to the new EU shipping regulations, sellers can continue to provide excellent service to their customers while complying with the new requirements. With the information provided in this article, sellers can navigate the changes with confidence and ensure a seamless experience for both themselves and their buyers.