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.
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?
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, 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.
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