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IOSS and double VAT taxation

I purchased some stuff from the US, with shipping method `USPS First Class Mail International Parcel`, and got charged VAT by eBay at checkout.

On eBay the order have a tracking number starting with `ESUS`, and when arriving in Sweden it had gotten a new tracking number in the form of `LW*********DE` and the postal service is requesting VAT to be paid again.


When asking the postal service about it the reply was:

```
I detta fall har inte avsändaren föraviserat IOSS på korrekt sätt med rätt underlag och i dessa fall kan vi inte hantera försändelsen utan betalning utan försändelsen hamnar i momsflödet. Betalning behöver inkomma för att denna försändelse ska kunna skickas vidare till dig.

Du behöver därefter vända dig till din avsändare för återbetalning av avgiften.
```

Translation:
```
In this case the sender have not sent the IOSS pre-notification in a correct way with correct documentation and in these cases the parcel cannot be handled without payment, and it ends up in the regular VAT flow. Parcel cannot be forwarded to you before payment have been received.

Afterwards you have to contact the sender for refund of the fee.
```

 

How best to handle this?

Will I be able to get the VAT refunded from eBay (and if so how?), or do I have to wait for the payment timeout to be reached, so the parcel gets returned, and get the order refunded?

 

Message 1 of 25
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24 REPLIES 24

IOSS and double VAT taxation

@belgairon0,

 

  "On eBay the order have a tracking number starting with `ESUS`, and when arriving in Sweden it had gotten a new tracking number in the form of `LW*********DE` and the postal service is requesting VAT to be paid again".

 

The change in tracking from ESUS to LW....DE, happens because the ESUS number is only for the international portion of shipping. Once a package arrives in a destination country a local courier service is used for the delivery.  

  If you check your order details and it shows you were charged the VAT separately, maybe taking that information to your post/customs office will allow the package to be delivered of handed over.  We do not deal with VATs here in the U.S. how you would get a refund if your postal/customs service forces you to pay a VAT charge again, we cannot say. If you have to pay again make sure you keep the receipt.

  In this country, when a tax is collected, the seller does not receive the funds for distribution. That portion of the payment goes directly to ebay for distribution to the state charging the tax.

 

You might get better answers if you signed up to use ebay from one of the European based sites and login to that site's community.  I would post your topic on its Shipping Board.

"THERE IS NO SUCH THING AS FOOLPROOF, BECAUSE FOOLS ARE SO DARNED INGENIOUS!" (unknown)
Message 2 of 25
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IOSS and double VAT taxation

We hear from many users that the IOSS number is not correctly associated with the packet, leading to the recipient being asked to pay VAT again on arrival. Unfortunately, your case does not seem to be isolated.

As long as the plaster has not dried, the wisest thing to do would be to postpone your next purchases or to pay the amount of the eBay transaction directly to the buyer, by Paypal for example.

 

In case you pay double the VAT when the package arrives in your country, you can be sure that no one will refund you. Depending on how important the package is to you, the best solution might be to let it go back to your seller, and have eBay refund the entire transaction. Cancelling the transaction seems to me to be the only way for you to get a refund of the VAT paid to eBay.

Your argument is sound: it is not your fault that the package was not correctly entered into the IOSS platform.

 

Good luck with the implementation by the postal systems of the new European regulation!

Message 3 of 25
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IOSS and double VAT taxation

According to what I was able to find out (per Pirate Ship) the USPS had a problem transmitting the VAT Paid  IOSS numbers to many EU countries in July.  Pirate Ship (an eBay partner for postage label printing) was the most helpful in dealing with this problem, provided you are a customer of theirs.   I found Ebay clue-less in dealing with the problem - to the extent the eBay Rep after telling her the eBay order number had the nerve tell me the VAT wasn't paid - It was paid in Black & White.   THIS IS A MAJOR PRBLEM FOLKS - DON'T TAKE NO FOR AN ANSWER - our customers have paid their VAT tax and the foreign post offices will not release the order unless they see the VAT - IOSS numbers in their system.  In some EU countries the VAT - IOSS numbers aren't there.  In closing, I was able to get a refund and subsequently refund the buyer - he than used the money to get his order released (out of jail).  My Swedish customer is happy and I'm frustrated with eBay and the US Postal Service.  

 

Once again eBay dropping the ball on communication - it's like they live on an island - the support team to boot is clueless.  Mike @ Sports Pinz Plus

Message 4 of 25
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IOSS and double VAT taxation

One more thing ...... you can send your buyers all of the support (until the cows come home) the foreign Post Office (in my case Swedish) will not release the order until they see it in their system - their system.   Another observation I found working with my buyer was the label did have the VAT - IOSS Number on the label.  It was when the Swedish clerk scanned the label they were until to find a match in their database.    

 

Mike @ Sports Pinz Plus

Message 5 of 25
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IOSS and double VAT taxation

Here we are in September, and it's still a problem. I am also in Sweden, and **bleep** they are rigid in their process. It seems like somehow either the label should have a barcode with the IOSS number included, or somehow their system looks it up electronically - and if nothing is found, it fails. Despite sender and the originating postal carriers best efforts.

 

Like someone above I also noticed the package had been re-labelled in Germany (starting it's journey in the US), on the new label you clearly see a field called "sender tax id" that contains the IOSS number. This number was intentionally put into that field, not in a field called zipcode, or first name, or phone number.  So, something went wrong at the source or during re-labelling, and PostNord (Swedish post) do not wish to make any effort to investigate what has gone wrong. I sincerely don't think they have any interest in fixing this -- it is much too lucrative for them.

Message 6 of 25
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IOSS and double VAT taxation

As an update to this. While searching through the german eBay community I managed to find the page for requesting refund from eBay for double VAT, and have gotten it refunded.

 

The process was:

 

1) Postal service asks for VAT to be paid.

2) You pay the VAT to the postal service, and make sure to get a receipt/invoice.

3) Go to https://ocsnext.ebay.de/ocs/mudcwf?deptName=CollectRemitRefund , upload a scan of the receipt/invoice, and describe the issue (basically describe that the postal service required VAT to be paid again for your specific order number after it had also been paid to eBay).

4) Wait for eBay to respond, hopefully they are able to match your order info and document upload to process the refund, and then wait a bit more for the refund to processed back to your payment method.

Message 7 of 25
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IOSS and double VAT taxation

PostNord Sweden not the first time (through the post-Brexit time) said to me that the Swedish customs [Tullverket] does not recognize eBay's IOSS IM2760000742, and I still need to pay the second VAT for the package I ordered from UK. On the package it says:


VAT Paid:
IOSS ID: IM2760000742

 

but that did not help. PostNord Customer service said, quote:

 

Hi! I am sorry, the IOSS-number is incorrect and that is why the customs has handled it as regular imported letter. I recommend you to contact the sender for a claim and they will then also contact us regarding this. If the customs has done anything wrong it will be us refunding the sender and they will then refund you for the VAT.

 

I am sorry, we cannot claim it for you. You have paid the VAT to the sender and to Tullverket [customs], you need to claim it to them. If you get the VAT back from Tullverket, we will refund you the administration fee.

 

Well, I will try to take that fight with Tullverket, but I am pretty sure they will ignore me. If I have any success, I will post it here.

Message 8 of 25
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IOSS and double VAT taxation

How did that go?

Package stuck in custom in sweden.

Ebay VAT Invoice:  IOSS-161820-SE


IOSS number: IM2760000742

Not any signs of the IOSS on the package label on the image the customs have provided.


Message 9 of 25
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IOSS and double VAT taxation

EBay IOSS does not work in Sweden. I have had it on the package properly set without any success. The best you can do is to pay the handling fee + VAT and then apply for the refund that you paid to eBay:

 

https://ocsnext.ebay.co.uk/ocs/mudcwf?deptName=CollectRemitRefund

 

I have not figured out whom to blame. Either eBay for not registering the packages properly or Swedish customs not willing to give up their piece of cake. 

 

 

 

Message 10 of 25
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IOSS and double VAT taxation

ryvaenge81
Adventurer

Correction from last post: The shipment label did contain IOSS: IM2760000742

I paid and will try to turn to ebay. 

Why can`t things just work! Postnord claims there is not registered an IOSS on the package.


Message 11 of 25
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IOSS and double VAT taxation

If the items you are looking for are only in US or UK, then there is nothing we can do. Try DE, ES, IT eBay sites.

 

I wonder if there are people from NO, DK, FI for whom the IOSS thing worked.

 

From what I understand, PostNord is a messenger here. Tullverket is the one that charges the handling and VAT. It is probably Tullverket as well that sends a picture of the package when you need to pay VAT. Or am I wrong?

Message 12 of 25
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IOSS and double VAT taxation

I got myself in the exact same scenario.
The IOSS codes provided by eBay do not work at this moment. And you will have to pay VAT again at customs clearance procedures. 

In order to get your overpayment, you'll have to contact eBay Help Support and provide them with Customs Declaration documents and received parcel pictures.

The tricky part is, in our country - Lithuania - local carrier (Default Postal Service) does NOT provide any declaration documents starting this year. Customers are being transferred to self-service system and pay tax without provided actual receipt but merely an automatically calculated tax system on their web.

In the end, I haven't receiver my overpaid VAT taxes au to date. And eBay does not except bank transactions and any other form of proof or documentation other than Declaration Documents. For unknown reason, there is no work around. Had to stop shopping on eBay all together. Still looking for a solution - that's how I got here.

Message 13 of 25
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IOSS and double VAT taxation

I got myself in the exact same scenario.


The IOSS codes provided by eBay do not work in some (?) EU countries at this moment. And you will have to pay VAT again at customs clearance procedures. 

In order to get your overpayment, you'll have to contact eBay Help Support and provide them with Customs Declaration documents and received parcel pictures.

The tricky part is, in our EU country - Lithuania - local carrier (Default Postal Service) does NOT provide any declaration documents to customers starting this year. Customers are being transferred to self-service system and pay tax without provided actual receipt but merely an automatically calculated tax system on their web.

In the end, I haven't receiver my overpaid VAT taxes up to date. And eBay does not accept bank transactions and any other form of proof or documentation other than Declaration Documents (Receipt for VAT*). For unknown reason, there is no work around. Had to stop shopping on eBay all together.

Still looking for a solution or changes in the matter - that's how I got here.

Message 14 of 25
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IOSS and double VAT taxation

The thing is that it is a problem in other EU countries as well might show that the problem is with eBay procedures and that they are not doing it properly when registering the parcels.

 

As about the Lithuanian post office, you should be able to request the receipt, or at least have a copy of the payment when you pay at the Paštas office, or is it that you have to pay via bank transfer before it comes to the post office? Take screenshots along the way and try to contact the post office or Muitine to get a receipt. Worth a shot maybe.

Message 15 of 25
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