How to fulfill international orders when Glopal is a deemed supplier?

• Note: this article applies only to merchants who ship international orders using their own integration with shipping providers. Merchants using Glopal’s Parcel Forwarding solution are not affected. 

1) Distance sales of goods imported from outside the EU

The European Union is making important changes to its value-added tax (VAT) rules, which come into effect on July 1, 2021. This will impact businesses that sell across EU country borders and businesses exporting goods to buyers in the EU. For more details, please, refer to our blog post. 

Glopal is working hard to keep you up to date with all the constant changes to VAT and enables you to sell into the EU and other international markets hassle-free.

Starting from the 1st of July, Glopal will act as an electronic interface and will be considered as a deemed supplier on some of the international orders. A marketplace or a platform becomes a deem supplier if they facilitate certain cross-border B2C transactions of their third-party sellers. Deemed suppliers will therefore be liable to collect, report and remit the VAT due from the consumer.

What does it mean to your business? Glopal will be collecting and declaring the EU VAT for you on orders with a shipment value of less than 150 EUR. 

If you do not use Glopal’s Parcel Forwarding shipping solution but instead - your own integration with shipping providers, there is one important change to the order fulfillment process. You would have to input Glopal’s IOSS number when processing orders from Glopal to avoid shipments being stuck on the border and buyers paying the VAT twice.

The IOSS number will have to be passed to your courier for orders where the rule applies. You should NOT use Glopal’s IOSS number for orders that are not specifically marked as such that require Glopal’s IOSS number.

How will I know which orders are qualified to be processed with Glopal’s IOSS number if I use Shopify platform?

How will I know which orders are qualified to be processed with Glopal’s IOSS number if I use Bigcommerce platform?

How will I know which orders are qualified to be processed with Glopal’s IOSS number if I use Magento platform?

How will I know which orders are qualified to be processed with Glopal’s IOSS number if I use Glopal’s international payment solution?

2) The French Exception

As Glopal is headquartered in France, it can help you with collecting VAT for any purchase made to France, even if it's above 150 EUR.

In your Glopal Merchant Account you will see these orders marked as "Use Glopal VATIN number". By providing the Glopal VAT number FR47879903243, communicated to you by the Glopal team, you can make sure that your buyers don't pay the VAT upon the reception of the goods and can ensure a delightful customer experience.

3) Distance sales of goods imported from outside the UK

Following recent official exchanges with the UK Tax authorities, and to ensure compliance with tax regulations in the UK, we would like to notify you that starting from March 11, 2024, Glopal assume the role of the "deemed supplier" for all B2C distance sales of goods with a value < £135 (~158€).

This designation is due to Glopal being considered an electronic interface facilitating the sale between you, the Merchant, and the end buyer located in the UK.

Here are the key changes taking effect from March 11, 2024:

-> If you are using Glopal’s checkout:

• Glopal will be responsible for declaring all B2C sales made to UK-based customers under the UK Online Marketplace scheme.
• Glopal will collect UK VAT on transactions falling within the new obligation (i.e., all sales of goods with a value < £135).
• Glopal will remit the collected VAT to the UK Tax authority under the UK VAT scheme.
• Merchant will no longer be liable for VAT collection and remittance for sales of goods with a value < £135.
• Merchants that are not using Glopal Parcel forwarding service will have to communicate to their carrier(s) Glopal’s UK VAT number: 459 6066 55

-> If you are not using Glopal’s checkout:

• Merchant may need to independently register with the UK VAT scheme to declare and remit VAT in the UK for sales of goods with a value < £135.

It's crucial to note that the £135 limit applies to the total consignment value imported, not the separate value of individual items within a consignment.

4) Distance sales of goods imported from outside Norway (VOEC)

With the introduction of changes in the Norwegian tax regulation as of January 1st 2024, Glopal will become the “deemed supplier” for all B2C distance sales of goods with a value <3000 NOK (~300€). Indeed, Glopal is considered as an electronic interface that is facilitating the sale between you, the Merchant, and the end buyer located in Norway. 

What will change as of January 1st, 2024:

-> If you are using Glopal’s checkout

• Glopal will be liable to declare all B2C sales made to Norway-based customers, under the VOEC scheme. In practice, Glopal will have to collect the Norwegian VAT on transactions within the scope of the new obligation (so on all sales of goods with value < 3000 NOK).
• Glopal will remit the VAT collected to the Norwegian Tax authority under the VOEC scheme.
• You, Merchant, will not be any more liable for VAT collection and remittance for all sales of goods with value < 3000 NOK.
• Merchants that are not using Glopal Parcel forwarding service will have to communicate to their carrier(s) Glopal’s VOEC number: 2084155

-> If you are not using Glopal’sl checkout

• Please note that you will have to register on your own to the VOEC to declare and remit the VAT in Norway for sales of goods with value < 3000 NOK (We encourage you to read more about it via the official Norwegian Tax authorities site via this link).

NOTE that the VOEC tax collection scheme is applicable on item value level, not on cart value level. For instance, if a cart consists of 2 items:

• Item #1 =  2,900 NOK 
• Item #2 = 3100 NOK

Glopal will only be liable to collect and remit the item #1 tax value.