marketplace solution

Marketplace solution for global eCommerce

By Alexander Maasik

Jan 24, 2022|5 min read

In the global world of eCommerce, online marketplaces face a lot of challenges. Different regulations on cross-border trade make it difficult to sell globally.

At the same time, the sellers on the marketplace want to reach as many customers as possible. That is why a marketplace must use a marketplace solution that makes it easy to sell goods to every country in the world. A solution like Eurora that makes sure, you are compliant with global trade regulations.

Global regulation – IOSS and UK VAT

In 2021, the European Union (EU) implemented new trade rules and started using the Import One Stop Shop (IOSS). This means that every marketplace shipping goods to the EU from a non-EU country must collect VAT based on the VAT rate at the point of sale and declare all goods in customs once they reach the EU.

Before July 2021, only goods valued more than €21 were declared.

At the same time, the United Kingdom, which had left the EU in Brexit, implemented a similar set of rules and regulations that make it harder for marketplaces outside the UK to sell goods to the consumers in the UK.

Considering that the EU is one of the world’s biggest markets and UK has extensive trade relations around the globe, these impacts thousands of online marketplaces, and their ability to use the one advantage an online shop has: to reach markets ordinary stores cannot.

But global regulations are always changing. Meaning, to stay compliant one would need to always keep an eye on new rules and standards.

For instance, when you are also dealing with cross-border shipping, you should know that in January 2022, the WTO updated the HS nomenclature, changing the codes that need to be put on packages. The HS nomenclature is a multipurpose international nomenclature for goods. WCO developed it and is maintaining it as well. Most countries in the world use it as the universal basis for Customs tariffs and international trade in good statistics. This update, HS 2022, is the 7th edition of the HS code since 1998.

This is a lot of work for a marketplace. It makes sense to outsource all these compliance issues to experts like Eurora. As we have dedicated teams monitoring the upcoming global rules, regulations, and changes.

Eurora Marketplace solution

Eurora offers marketplaces a fast variety of services that make it easier to handle global regulations. And that makes sure, the marketplace’s customer can sell globally online.

These services will help your marketplace to decode the global compliance challenges and address all the actual needs of the global online sellers.

Eurora’s HS code allocation service can automatically assign HS codes to packages based on product descriptions. These universal codes are a mandatory requirement when shipping goods across borders.

Using Eurora’s Duty & Tax Calculation service, sellers on your marketplace can display the VAT and Duty charges based on the destination country in the shopping cart of their shop. Displaying the accurate VAT rates and charging VAT is mandatory when selling goods to the EU or UK. Meaning, if you want to reach those markets, you need to make sure, your systems are up to date.

Eurora’s compliance services also make sure your marketplace is not shipping goods that are restricted in the destination country. And that you don’t sell to anyone who is restricted from buying the specific goods based on international denied party lists. This makes sure, you don’t break any laws and are not liable for offenses that can end in fines or revoking of export licenses.

If you use Eurora for all these vital services, our AI-based system does all of this work automatically and it takes less than a second to process each request. You’ll be saving a huge amount of manpower and time each year. Increasing the quality of your systems and profits at the same time.

VAT Services

Eurora also helps you to handle the EU and UK VAT regulations. Eurora was the first company to register as a fiscal representative and VAT Intermediary for the IOSS scheme. And we can represent you in every EU country.

Setting up the IOSS with Eurora is easy. To get an IOSS registration number for a client, we collect the minimum required identification information from each customer. This is necessary to assess money laundering and terrorist financing risk according to the EU anti-money laundering rules. Eurora will then act as an intermediary on behalf of the marketplaces for VAT purposes in all countries in the EU.

When selling to the UK, we’ll appoint you a personal tax specialist. One who manages the VAT registration process in the UK and helps you quickly get the UK VAT number. Though, be warned, getting it may take more than 30 days. So even if you think about starting to sell to the UK in the future, it is wise to start the process early. Eurora will also take care of all your tax return submissions and help you make all the required tax payments. Also, we will represent you in front of the HMRC, making sure you are 100% compliant with all the UK tax regulations.

Full marketplace solution

With Eurora you’ll have all the tools and expertise needed to make sure your marketplace can reach the global customer. And the sellers on your marketplace can sell their goods without interruptions. This will make sure that all stakeholders, from customers to service providers to revenue offices, are happy and satisfied.

To try out Eurora, contact us now.