Item Cost & Shipping Charges Over 150EUR, yet Amazon.es still processes as IOSS
Hello,
Order received a few weeks ago for several items through Amazon.es.
Cost of items (ex VAT) 146,43 €
Cost of Shipping (ex VAT) 28.66 €
Amazon have processed this sale under the IOSS scheme which brings total charged to customer 184,74 €
We have sent through UPS ensuring the relevant HS Codes and customs documents are completed correctly using the IOSS number provided.
Email from customer stating they have been charged 43 € from UPS for Import VAT.
Phoned UPS UK who advised to speak to UPS FR.
Email UPS FR who advise -
"The IOSS only applies for shipments under €150.
However, this shipment has an amount of 175.09€, the IOSS is therefore not applicable and the VAT is due at destination."
Has anyone had similar experiences? I understand that the €150 limit for IOSS is purely on the goods, not the goods and shipping charged.
Thanks
16 replies
Seller_7VbclcPFFRTnc
anything on the address that shows to customs that its a commercial / business customer
did you put the total on the paperwork in the sales box rather than split it out showing cost of goods was under 150 euro ?
Seller_oYl0UE5Ve5HSf
The €150 limit is the value excluding VAT.
So being processed by Amazon as IOSS is correct. It should be sent with an item value of €146.43 using IOSS. So no extra clearance or custom/duty fees to pay.
Seller_tRuvBEHDedp4q
Are we certain shipping costs are excluded from the total for IOSS purposes?
I cant find anything that says for certain either way, so would be grateful if anyone can send a link to anything that explains this for certain.
I am using the fact that shipping costs do usually attract VAT. VAT on the order is calculated using the formula (Goods + Shipping) * VAT Rate
If shipping is included then this has caused the problem. Did Amazon actually mark the order as being IOSS? i.e. did the order details contain their IOSS number?
If the IOSS number was missing then they have not charged or claimed the VAT from the customer and so what UPS have done is correct. How this then falls into Amazon policy of not charging customer extra on delivery I have no idea - how can you limit what a customer orders? There was a forum post a few months ago with that problem.
If Amazon did include their IOSS number in the order details then I assume shipping cost should not be not included in the total and UPS have gotten it wrong.
Seller_oYl0UE5Ve5HSf
The shipping price is not included as part of the €150 threshold.
EU documents online and Amazon also confirm this.
There is an old post:
To confirm shipping price will still be charged with VAT. This is paid by Amazon through IOSS. But it does not contribute towards the consignment value. As long as the shipping is charged seperately.
Seller_tRuvBEHDedp4q
Thanks for confirming and giving me actual links to show shipping cost is not included as part of consignment value.
OP needs to go back to UPS and explain this to them as well as it seems to be their mistake.
Seller_CAlejg2HWapCV
UPS Reply -
Hello,
As explained by my colleague, we can’t did clearance of package using IOSS number because value declared is higher than 150 EUROS.
Value indicated on commercial invoice include freight, so, custom process was made under appropriate incoterm (CIP) but IOSS number can’t be applied.Value declared including or not including freight must be less than 150 EUR to use the IOSS procedure.
You can’t collect VAT for this importation and this amount remains to be paid by the final customer.
Seller_CAlejg2HWapCV
Feels like no courier are correctly applying the regulations.
We’ve had dozens sent back from Spain, Belgium, France, Italy, Germany etc… which have been 100% sent in the correct way.
Last week I turned off all EU sales, it’s going to really hurt us as we’re losing 30% T/O, but the additional paperwork, stress and losses are no longer worth it.
Thinking positively, it allows us more time to concentrate on the UK market and allocate more resources in marketing our own website and other channels which are economically more appealing.
Silver linings eh?
Seller_xUKHc5xSYJmI4
We have asked Royal Mail to investigate why some orders are being returned within two days despite applying the CN22 to all orders and the IOSS.
