My European customers are paying taxes twice (when make their purchase and when receive it)

[KawaiiandCute2008]

I'm from Canary Islands (Spain), but, my islands doesn't have the same taxation than peninsular Spain (in Spain IVA, in Canary Islands IGIC, that is lower). For this reason, my islands are not considered belonging to Europa for sales for the difference of fiscality (we are european, but at the same time, not european if you are an international seller).

The problem is that, due we are considered "outside" of the EU, my European customers have to pay import taxes when they receive their orders. But they have already paid those taxes in the moment they made their orders!!! For UK customers, Etsy provides me a number of taxes that I must include in the outside of the package, in order that UK customs know that taxes have been paid. But there's no other European country where Etsy provides me that number, and my customers have to pay taxes again when they receive their orders, so they are paying twice and they are claiming this to me.

Need help with this please!!!! This is harming so bad to my shop, making my customers don't back to purchase again.

Thanks in advance

[VogueVixens]

This is what I see on my EU orders, so you can use this for yours.

You must share Etsy's IOSS number, IM3720000224, with your courier for this order (use it only for this purpose). This helps ensure that your buyer won't be charged VAT twice. Make sure to write the value of this order in euros, €, on your package, too.

[KissOfARedRose]

I have sold to Europe for 5 years now getting problems with customs and sales tax. Customer charged 10 euros for sales tax in Italy she had already paid Etsy , IOSs number and amount paid  supplied. Italian customs thought the value was too low so charged another 10 euros, they said they thought it was worth more seller paid 34 they thought should be 74. She has shown them Etsy invoice etc no still charging her. I have had Belgium charging Import tax on item way below import selling price and Portugal challenging the price on Etsy invoice and demanding import tax too. 

so sick of it, seriously thinking of stopping sending to Europe except France no problem with them .Anyone else had this it’s just started in last 3 months.

[ArteFuegoventura]

Hello,

is this IOSS number valid for all EU-countries or does every EU-country have a different number?

[Arcalliq]

@ArteFuegoventura 

read last two responses on this thread. (from @CraftyCornishMaids and myself)

this number is valid for all EU countries but can only be used for orders where ETSY actually collected VAT. Simply putting the number on the package if Etsy DID NOT collect VAT is VAT fraud and can get you in a lot of trouble.

[CraftyCornishMaids]

@ArteFuegoventura 

start from the beginning,

As a platform, etsy has to collect import VAT on all items under 150 euros, that are sent from outside the EU, to inside the EU

1. If they collect this VAT, their IOSS number is on the order, and the amount of VAT they collected is on the order, and packing slip.

2. If etsy's IOSS number is not on the order, and the amount of VAT is not stated on the order, then Etsy has not collected it.

If it is 1. then you put the IOSS number, that is on the order, electronically into the postage you buy

If it is 2. Then you put nothing on the label or package, and if Import VAT is due, the customer pays it to customs on import

..

[VogueVixens]

Also read this article, because you need Etsy's tax numbers for sales to some other countries such Australia, New Zealand, Norway

https://help.etsy.com/hc/en-gb/articles/360000337247-Custom-Fees-and-Physical-VAT-Collection?segment...

[KissOfARedRose]

Hi, thank you for sending this article I am including the Etsy IOSS number and none of these parcels is over 150 euros says that on the customs form so not eligible for import duty. Never have a problem except with some EU countries Belgium, Portugal and Italy. What can you do when the customs say they think the value is more than the customer was charged on invoice, crazy.

[VogueVixens]

Did you always include 2-3 paper copies of the invoice on the outside of the package, so that the customs officials can look at these?

You really can't do anything if the receiver's country's customs officials have decided that the value isn't correct.

I assume therr are options for the customer to  appeal it, by filling out paperwork, though it's likely they have to pay the charges first, then appeal and hope for a refund. 

Italy has a reputation for having TERRIBLE Customs, and their government beaurocracy in general is a nightmare.

My brother in law is from Italy, and his family still lives there, they've told us plenty of stories.

[PrimFun]

The IOSS number needs to be supplied.  It's supposed to be electronic so see if your carrier will add the number electronically.  If not then write it on the package.  I've also written the words VAT already paid.

[homegrownhat]

I did this exactly for parcels to Italy in the last couple of months and both my customers were charged again by Italian customs seemingly on their own whim. Italy is now off my shipping list- I can’t run my business if customs don’t follow the rules. 

[CraftyCornishMaids]

did you have invoices on the outside, in see-through document wallet, in euros?

[KissOfARedRose]

Hi, do all the IOSs stuff and the value but, as another seller said Italian customs are so what, charge them again.

[GroundZeroCreations]

I know in the US that the IOSS number is included in the barcode on the label if you purchase your shipping label directly from Etsy. I don't know if sellers in your country can purchase shipping labels through Etsy though. So be sure to write the IOSS number provided by @VogueVixens on the shipping label if it isn't an Etsy shipping label.

[VogueVixens]

Etsy only offers/sells Postal shipping labels for 4 countries

-USA -USPS

-Canada-Canada Post

-Australia-Australia Post

-United Kingdom - Royal Mail

[SwedishViolets]

I wish Etsy would stop charging taxes for packages sent to Europe, because we are always double taxed.  Every single time. Customs is charging me taxes on the item cost, shipping cost, and Etsy VAT cost combined. I live in Sweden. They are effectively keeping me from wanting to ever buy anything from outside of the EU again. Also, Etsy should filter out the UK when a customer searches for a shop located in Europe.

[Toysandsuchforall]

I am in Belgium, Europe, myself and when someone from UK is ordering, Etsy gives a warning to mention the VAT number and amount, but not so for other countries outside EU.

I received a Christmas present from a friend in Canada and had to pay taxes on that.  Not only on the estimated value, but also on shipping!  So I ended up overpaying my own present.  Same happened when I had a complaint about a product with a company and they sent a replacement from the USA.  I'd have to pay more taxes than the actual value, even when that value was properly listed.

[JJewellerySuppliesUK]

You are not meant to write the IOSS number on the package.  If you buy your labels from Etsy or online from your postal service then the IOSS number will be embedded in the barcode.  

[bellecoseschmuck]

@JJewellerySuppliesUK -a lot of countries cannot buy and print Etsy labels!

[JJewellerySuppliesUK]

I said "or online".  You don't have to buy Etsy labels, each country can buy them online from their postal  providers. 

[AuroraAndAine]

Not "each country" either - there is no option for online waybills where I am.. everything must be filled out by hand 

[CraftyCornishMaids]

@AuroraAndAine 

The IOSS number has to be in the electronic part of the label.

If you can't do this, then stop selling there

[BeautifulArtPosters]

Yes, you have to find a solution for electronic labels, I'm sure Japan post has this option that you can fill an online form and print it out.

Or consider to ship with UPS and Fedex

[GreatJoyHut]

Did you find your answer? Etsy is remitting those moneys to the VAT account you wrote on the package, the clients have to provide their receipt to Correos showing their paid the IVA and to which municipality. I had the same issue, the client had to pay IVA twice AND on top of that a handling fee so her extra charges were 60% of the product charge. I referred my client to ETSY, if she already pay VAT, I don't see why ETSY would remit something that was already paid.

[TempoFelice]

@SwedishViolets exactly, we should be able to filter out UK when searching a shop located in EU!