Do you have a Shopify store and gave up on your dreams of selling to the EU because tax regulations are a headache? What if adding Eurora Tax Automation to your Shopify store was your gateway to the EU?
“Eurora Tax Automation app allows non-EU merchants having a Shopify store to offer their goods to 500+ million new potential customers without having to worry about their compliance with EU VAT regulations.” Explained Mikhail Soloviev, Product Manager of Eurora Tax Automation, who put the knowledge and expertise of the Eurora team into a single app.
With Eurora Tax Automation, you save hours spent on managing your taxes, while improving the shopping experience for your EU customers. Get started with Eurora Tax Automation now!
The EU, an attractive but challenging market
No matter the size of your business, having a Shopify store paves the way for reaching customers across the globe. Yet, due to their regulatory complexities, some markets are hard to enter when you have limited resources. This is usually the wall that non-EU businesses face when they try to enter the attractive EU market. Even though the EU is the world’s largest single market area with 500+ million potential consumers, its regulatory maze discourages merchants from offering their goods to EU customers.
Among the regulatory hurdles standing in the way of non-EU sellers, EU VAT is without a doubt the hardest to overcome. Mikhail Soloviev gave further insights. “EU VAT compliance can cause a lot of pain to eCommerce sellers based outside of the EU when they consider expanding their sales to the EU. Many of them are just entering the eCommerce world, and do not have any knowledge about EU VAT regulations.”
To make matters worse, new EU VAT rules coupled with Brexit came into effect last year. They made the EU market harder to reach, even for the most seasoned eCommerce sellers. Jeff Seymour, Managing Director of two UK businesses, told us about the pain he experienced after these regulatory changes. “We have been sending around the world for years with no problem. And suddenly, goods were not getting to the customers, they were being held up at customs. Or customers were being asked to pay money to have their goods released.”
Unlock the whole EU market with Eurora Tax Automation
Selling to the EU does not have to be a puzzle. Using Eurora Tax Automation on your Shopify store will free you from the EU VAT maze and open the whole EU market to you. The app takes care of your EU tax matters from the collection of VAT to the reporting, so you can focus on your core activities. “Eurora Tax Automation app opens the EU market to all non-EU merchants by making it possible for them to sell and ship their goods to any EU country without having to worry about EU VAT regulations and let Eurora take care of that.” Explained Mikhail Soloviev about the app.
Eurora Tax Automation not only makes shipments to the EU a piece of cake but also gives you the opportunity to reduce your operating costs. The app automatically sorts your Shopify sales data and collects from your clients the correct amount of EU VAT on the relevant orders. The corresponding EU VAT is then declared to the relevant Tax Authority, so you do not need to hire any tax expert. Our database is constantly updated with the latest VAT changes occurring in each EU Member State, removing any risk of applying outdated VAT rates and make manual mistakes .
Besides, using Eurora Tax Automation can level up the shopping experience for your EU customers. By letting your customers pay the VAT due at checkout, you let them have full visibility of the total price before they finalize their purchase. “Having to pay something extra to receive an order that was already paid is an unpleasant surprise for customers who are usually not aware of import regulations. In case the customer refuses to pay unexpected import taxes and fees, it may also lead to extra costs for the merchant to return the parcel,” explained Mikhail.
How does Eurora Tax Automation work?
- Sign up for the IOSS (Import One Stop Shop) with Eurora if you didn’t do it yet.
- Install Eurora Tax Automation on your Shopify store.
- Once your IOSS number is confirmed, start using the service.
Eurora Tax Automation app works along with Eurora IOSS service. Before using the app, you need to sign-up for the IOSS with Eurora if you haven’t done It yet. “The IOSS (Import One Stop Shop) is for distance sales of low-value goods up to €150 imported into the EU from a third country. Without the IOSS, your customers will have to pay VAT and handling fees when they receive their goods. Customs procedures will take longer and may end up with you losing your customers,” explained Triin Prei, Tax Consultant at Eurora.
Once you registered for the IOSS, you can simply install Eurora Tax Automation in your store. As Mikhail pointed out, it is an easy process. “Eurora Tax Automation app does not require any setup except the standard log-in procedure.” After registering for the IOSS, your personal Tax Consultant at Eurora will get in touch within 3 working days to provide you with your IOSS number and answer any questions you might have. Enter your IOSS number in your Shopify store, and you are all set to benefit from all the app features.
Once everything is set, automation takes over. Any time you receive an order, the app will automatically process your IOSS sales data. “The app’s intelligence distinguishes the orders that fall under the IOSS threshold and fetches all the required sales data from such orders.” After that, The EU VAT is automatically collected from your EU customers. Each month, your IOSS sales data is compiled into an electronic VAT declaration and submitted to the tax authorities in a timely manner, so you will meet deadlines without having to think about it.
Eurora’s cross-border compliance platform
Eurora developed an end-to-end solution suited for all types of eCommerce sellers dealing with global sales. Our cross-border compliance platform uses advanced AI technology to make e-commerce leaner, faster, and more cost-efficient by automating every aspect of the cross-border supply chain. Using Eurora’s platform makes sure you delight your customers with cost transparency and faster delivery while reducing your manual labor and time spent on compliance.
In addition to Eurora Tax Automation app features, by using Eurora’s cross-border compliance platform, you can:
- Assign HS codes: Get the correct HS/HTS code for your goods in real-time. We support up to 10 digits HS codes and country-specific nomenclatures.
- Calculate Duty & Tax: display the applicable VAT and duty rates in real-time at checkout. We support any currency and more than 160 countries.
- Check for restrictions: screen all your orders against national and international denied parties lists to make sure you comply with import and export regulations. Our database covers most countries in the world.
Are you a UK business looking to reconnect with EU customers post-Brexit? We even have a free guide for you that shows you the process step by step. Download it here!