Black Friday is one of the biggest consumer holidays in the world. For many, it is the time to shop online, get great deals, and spend a lot of money.

For e-commerce sellers, it is the time where you can expand your customer base, reach new markets, and increase their revenue. The easiest way to sell to the EU and deal with all the trade compliance aspects is to use the IOSS scheme.

With Eurora, you can start using the IOSS in 3 days. And if you start using Eurora before Black Friday, you can also use our Duty and Tax Calculation service for free for a month. All to make sure, you can reach all the customers in the EU and offer them reliable, transparent service.

Regulatory Compliance with IOSS

Cross-border compliance is key to a successful online marketplace.

Over the last year, most consumers have purchased products outside of their home market. This rise in cross-border buying makes order fulfillment a key differentiator for brands to improve customer experience and loyalty.

This is especially important for Black Friday, Cyber Monday, and the overall holiday shopping period where online stores hope to make a big part of their revenue. Over the last decade, this American holiday has become increasingly popular in Europe with e-commerce increasing every year. In 2019, about 40% of shoppers decided to buy online, thanks to flexible options, like delivery, click-and-collect orders, or pick up in-store. The number of shoppers who used these methods grew by 43%.

At the same time, in Europe, online shopping, in general, is increasing each year. In the EU, 73 % of internet users in the EU shopped online in 2020.

So, let’s take a look at all the main rules sellers need to take into account when selling to EU customers from a shop located outside the European Union.

The EU Trade Rules

To successfully sell to the EU, a non-EU company must comply with the EU trade regulations that came into effect in July 2021.

One of the biggest changes is that sellers should now collect VAT on all goods that they sell to the EU customer. The VAT rate is dependent on the country of the consumer. Sellers must therefore be able to determine the VAT rates of specific goods for all the EU countries they want to deliver to. These rates are different for each country in the EU.

Another important shift in policy is that now sellers must declare in customs all goods entering the EU. Regardless of their value. So, when you are selling to customers in any of the 27 EU Member States you must lodge a customs declaration.

In comparison, before July 2021. most parcels and packages fell under the Low-Value Item Exemption. Meaning, they cost less than €22 and therefore were exempt from being declared in customs. Now, no such exemption exists, and every parcel needs to be declared.

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The Import One Stop Shop (IOSS)

To easily handle these new rules, the EU created the Import One Stop Shop (IOSS).

The Import One-Stop Shop is a new system for handling VAT and other taxes when importing goods to the EU. To use the IOSS, the seller must be represented in the EU.

Companies can either open a business in any of the 27 EU member states or find a company like Eurora that acts as a Fiscal Representative. Eurora is one of the first companies in the world who is registered to offer this service. Eurora can represent your company in all the EU Member States.

If the seller is not registered in the IOSS, the buyer must pay both VAT and any customs clearance fees themselves. In this case, the carrier company will charge these fees. This might come as a nasty shock for the person ordering goods.

Eurora Full Compliance Solution

Eurora offers a full compliance solution to marketplaces that wish to automate their sales and logistics processes. From VAT calculations in the shopping cart to customs procedures. All show that goods would move faster, and marketplaces could save both time and resources. Thanks to the capacity of the Eurora AI engine, all those services are easily scalable. Whether you’re moving 50 parcels per day or ten thousand.

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