Sending to EU, Biz Seller, Not VAT reg and EORI Numbers?

[brian.claire]

Hi there, I'm a non VAT registered biz seller who stopped 95% of our EU trading when EORI numbers came in and our returned parcels shot up.

However I would like to get it right on our remaining sales if anyone can help?

Firstly eBay collects VAT on sales even though I'm not VAT registered. Is there anything I can do about this? Sometimes an item was only worth offering online (good value) at the price stated and by the time the buyer has paid tracked delivery and now VAT, the offering seems over priced and therefore more liable to poor feedback.

*Note here I am an eBay ONLY biz and on Foreign sales I am a Click and Drop on Account ONLY.*

Secondly, when EORI numbers came in, I sucessfully applied for an EORI number and attach it to a sticker on the CN22 along with an IM number given out by eBay. Now I note the post office has stopped giving this number out to people so *confusion*.

It did occur to me that maybe I'm getting so many rejects from the EU that might because I have two numbers on there. And then I thought, hold on, there is no place in Click and Drop for my own EORI number so if I do supply my own EORI number, it's not connected to anything at all so surely must fail.

For someone thats probably sent 250 items over seas, mostly successful but VERY annoyoing when then get returned, I sure am a little confused. *confused smiley*

[4_bathrooms]

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@brian.claire wrote:

Firstly eBay collects VAT on sales even though I'm not VAT registered. Is there anything I can do about this?

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There isn't anything you can do. When an EU buyer places an order up to €150 (about £128 currently) from a non-EU seller they are charged EU supply VAT on their purchase. If the order is over €150 no (EU) supply VAT is charged by eBay but the buyer will be charged (EU) import VAT, customs duty and a handling charge by their domestic carrier on import.

The UK has a virtually identical system for imported goods with £135 as the threshold. They were once one and the same piece of legislation but due to Brexit the UK's and EU's VAT mechanisms are no longer aligned (UK VAT now has nothing to do with EU VAT). 

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@brian.claire wrote:

*Note here I am an eBay ONLY biz and on Foreign sales I am a Click and Drop on Account ONLY.*

Secondly, when EORI numbers came in, I sucessfully applied for an EORI number and attach it to a sticker on the CN22 along with an IM number given out by eBay. Now I note the post office has stopped giving this number out to people so *confusion*.

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How are you buying the postage? Is it via a Royal Mail Click & Drop account?

[brian.claire]

Hi yes, airmail purchased through click and drop account which is linked to my OBA account.

[4_bathrooms]

I don't have a Royal Mail account so I don't know what options you are given when purchasing the postage. Is the CN22 (customs form) generated from within the C&D account or is that entirely handled by the Post Office counter?

[brian.claire]

The cn22 is generated and printed within click and drop and there are some fields you can pre-populate with information in a setup screen but I can't see anywhere to put an EORI type number and the CN22 comes out with several boxes blank on the line where it says comany VAT number.

[ett1954]

As long as your EORI number is registered with your Click & Drop account and your Click & Drop account is correctly integrated with your eBay account your EORI number will be printed on the  CN22, however it is not required on the sales to the EU carried out through IOSS therefore the box remains blank on such sales.  It always prints my EORI number on the CN22 for sales outside the EU.

I am not VAT registered so I cannot comment on why that isn't being completed.

[4_bathrooms]

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@brian.claire wrote:

the CN22 comes out with several boxes blank on the line where it says comany VAT number.

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If you're not VAT registered it is supposed to be blank.

[4_bathrooms]

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@ett1954 wrote:

As long as your EORI number is registered with your Click & Drop account and your Click & Drop account is correctly integrated with your eBay account your EORI number will be printed on the  CN22, however it is not required on the sales to the EU carried out through IOSS therefore the box remains blank on such sales.  It always prints my EORI number on the CN22 for sales outside the EU.

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Oh, I see. The eBay integration takes care of the electronic IOSS information and there is a set-up screen with fields for things like the business's EORI number, VAT number etc.

Does the eBay integration populate the CN22 with the description of the contents, weight, value, HS tariiff number(s) etc? 

[ett1954]

@4_bathrooms  "Does the eBay integration populate the CN22 with the description of the contents, weight, value, HS tariiff number(s) etc? "

I only buy postage direct through Royal Mail (not eBay).  Whilst it does populate the CN22 with the above when you print the postage label and CN22 you do have to complete the details manually when purchasing the label although copy & paste is your friend especially with the HS Tariff numbers so it is not too much of a burden.

I would add that most of my sales are one-offs however when selling sold items of a product with more than one then the data does come prefilled; it uses the data from the eBay item number used previously.

[brian.claire]

The setup screen you speak of is here: Click_and_Drop_How_to_set_default_customs_information.pdf (royalmail.com)

But there is no where to input an EORI number. Could it be somewhere else?

[ett1954]

@4_bathrooms   Sorry, I should have added that the value always comes pre-filled.

[ett1954]

From what I recall it should be entered into your details when you set up your Click & Drop account and integrate it with eBay.  It will then be added automatically when required on a CN22.

Is it another eBay account you have that you are referring to as the account you are posting on is not a business account?

[brian.claire]

Darn it. I found where you add the EORI number in Click and Drop. It's under Settings... Trading Names belkieve it or not.

You then select countries or groups on countries in schemes (IOSS) and then eneter a value. I don't know what "value" it wants, guess I need to keep looking.

My other question was that IM number we used when brexit started. Does anyone remember that or whether it can be ditched now?

[brian.claire]

There's a membership number (not EORI number) of the IOSS scheme itself which you need to even sell goods to N. Ireland. Who would have ever thunk it? Tell HMRC you’re registered for the VAT IOSS in the EU - GOV.UK (www.gov.uk)

[ett1954]

Most major online selling platforms take on the responsibility of collecting and forwarding the VAT to the import country's tax agency for EU sales if they fall within the IOSS scheme (sales under €150).  It is eBay's IOSS number which is used and added electronically to the postage if you purchase postage through eBay or use a postal service account which integrated with eBay such as Royal Mail's Click & Drop.  That 'membership number' is only for sellers not using a selling platform providing this service, selling independently, or selling above €150.  If you are only selling on eBay products which fall into the IOSS value you don't need to worry about that.