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Idea for PayPal feature ( IOSS and PayPal invoices ).

0 Kudos

Idea for PayPal feature ( IOSS and PayPal invoices ).

I am sure that many folks on here are familiar with the new EU centralised VAT system introduced last week.

The idea is someone selling direct to a customer in the EU for goods over EU22 but less that EU150 is supposed to register with any EU country for IOSS (Import OSS), charge the customer for VAT, ship the goods with their VAT number on the customs form, and then pay the VAT.

 

If a trader is outside of the EU then this is difficult and basically you need an intermediary.

 

You pay the intermediary, they pay the VAT and let you use their IOSS number to put on the parcels.

 

Deloitte offer this but charge £2000 per year. Crossborderit offer it but want a monthly fee.  I found one reasonable company but you have to add their API to your payments system, which seems like a lot of work.

 

I already have a system for customers in the EU where I create a PayPal invoice and send it to them, and they pay it.

 

Couldn't PayPal just modify this process a little so that I could add that a line item on the invoice is subject to IOSS.  Paypal would just add the IOSS to the payment amount, the customer would pay it, and then I could use PayPals IOSS/VAT number on my customs label?  PayPal could just register for IOSS somewhere and allow all PayPal customers to use them as an intermediary.

 

or maybe they already do this and I don't know about it.......

 

thanks

6 Comments
HHBB
New Community Member
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Wow, over a month and no response. I thought this would be a popular topic.

I'm very interested in this too. The only one I can see is Taxamo but it looks fiddly for someone that doesn't know what to do. If Paypal incorporated this into their plugin then it could be added to any website very easily and they'd obviously earn more money. Unless of course it's already there but they haven't made a big deal about it.

 

azsteve
Contributor
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I think your idea is splendid.  I regularly sell to EU countries from the USA and the new IOSS registration rules is causing me much concern.  I have goods costing $155 USD and that falls squarely in the region of trying to collect VAT.  Intermediaries have come out of the wood work recently but they want to charge exorbitant fees for their services. 

 

Please, PayPal, set this up.  Your customers will thank you.

 

Steve

dieselnutjob
Contributor
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I have been shipping units to customers in the EU for the last two months using a shipping company called Samos-E.

They have combined the shipping and IOSS into one service and it's working great for me, after some bad experiences with one of the traditional couriers.

I wrote a post about my experience here https://pscan.uk/shipping/ 

Dream1239
New Community Member
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This is a fantastic idea, PayPal is already a digital marketplace anyway…if your using them to send invoices, since they collect a % they should allow use of thier ioss number.
   I am not sure why this isn’t already a feature.

 

sharpiemarker
Esteemed Advisor
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I’m kinda iffy that PayPal has to do this. It’s debatable that PayPal are a marketplace and is themselves moving away from providing shipping labels, at least in the US, to Shipstation. Sellers would be the ones responsible for following applicable tax laws globally and have to see if it even applies to individually to them. In the US, Pirateship provides the IOSS barcode on their labels so that is an option if you remit these point-of-supply taxes to an int’l country yourself, directly, with a registered VAT number or through a marketplace provider. If you sell at a marketplace such as eBay or Amazon, the IOSS is taken care of as this law is particularly aimed at companies like them them, but everyone else is hit by the blowback.

Royal Mail is set up to provide IOSS barcode on their postage labels.

If you sell at your own website with PayPal, sellers may have to collect and remit the taxes themselves if they meet the requirements/thresholds with a your own registered VAT/IOSS number for each country and if not applicable and do not add an IOSS/invoices on shipments, customs will just handle the charging of applicable taxes anyway.

 

Some countries are not even prepared for the IOSS so a buyer is charged taxes once at time of purchase and again by customs, even when the seller provided invoices and even the IOSS number itself typed on the shipping label/enclosed invoices just because the IOSS is not barcoded.

 

 

Bethp25
New Community Member
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Chiming in with a "pretty please, Paypal!"

 

This is a complicated process to take on for a small business based in U.S. especially with reduced staff due to the current situation (as this is only a subsidiary business for us). We had stopped shipping to UK (and cancelling/refunding orders via Paypal) after Brexit as that become mind-boggling to figure out and hadn't yet delved into the IOSS for EU.

 

But now (Jan '22) it seems that EU orders via USPS  are being delayed.

 

The cost of hiring an expediter is outrageous.

 

Most of our orders are $20.

 

Any suggestion appreciated.