Is Sweden going to be the Powerhouse country for IOSS registration and intermediaries?
Published 28 June 2021
For many years the Netherlands has been the epicenter of warehouse distribution, break bulking, and tax representatives in Europe.
Some of these break bulking practices have been the catalyst for the new IOSS changes to European tax law. Many importers would drop cheap products into the European Market. These products could enter without paying any VAT(value-added Tax). They often entered the markets through postal services and very much under the radar as they were free to move once cleared in the European Common Market.
For many years the Netherlands has been the epicenter of warehouse distribution, break bulking, and tax representatives in Europe.
Some of these break bulking practices have been the catalyst for the new IOSS changes to European tax law. Many importers would drop cheap products into the European Market. These products could enter without paying any VAT(value-added Tax). They often entered the markets through postal services and very much under the radar as they were free to move once cleared in the European Common Market.
A few decades ago, the Netherlands took advantage of these rules and created very shopper-friendly ways to recoup VAT and have fiscal representation in Europe. The Netherland’s impressive foresight created an amazing entry point for distribution in the European Market.
What does Sweden have to do with it?
The IOSS tax laws are changing, and all the tax authorities are scrambling to make sure they are ready for the July 2021 deadline. Systems are down, the processing is slow, and the rules are unclear. However, in the over planed over organized country of Sweden, they removed the De Minimis (the rate at which you can enter without paying taxes) Several years ago.
As a first-mover, their systems are easily adapted to the new IOSS rules. Intermediaries like Crossborderit are onboarding customers and setting up processes with a better understanding of the rules and systems.
As a first-mover, their systems are easily adapted to the new IOSS rules. Intermediaries like Crossborderit are onboarding customers and setting up processes with a better understanding of the rules and systems.
There is a lot of ambiguity when it comes to how things will play out after July 1st, 2021, however, I believe we will see a strong presence for Sweden as a haven for successful IOSS intermediaries.
It remains to be seen if the first-mover advantage Sweden and Swedish IOSS intermediaries will be successful, but this currently looks like the best Market for nervous e-commerce merchants, 3PL’s and platforms to make their IOSS home.
It remains to be seen if the first-mover advantage Sweden and Swedish IOSS intermediaries will be successful, but this currently looks like the best Market for nervous e-commerce merchants, 3PL’s and platforms to make their IOSS home.
Contact the Crossboderit team to get the advice you need on the new IOSS and also be your IOSS Representative.
CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.
Sign up with Crossborderit and ship hassle-free.
CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.
Sign up with Crossborderit and ship hassle-free.
