Gelato is not a financial or tax advisor, for specific questions related to VAT we recommend you reach out to your accountant.
IOSS, or Import One-Stop Shop, in simple terms, is a system that helps you on the online marketplace (Etsy) handle Value Added Tax (VAT) for your customers in the European Union (EU) more efficiently.
Once you have connected your store to Gelato, your IOSS number is automatically added to all your incoming orders (please note, that it doesn’t apply to manual orders). Meaning, that Gelato will add the necessary details for the shipping provider and you don't have to contact us extra to provide the IOSS number.
The IOSS number for the marketplace (Etsy) can be found in the store settings on Gelato.
Gelato has a different production and VAT setup than other POD suppliers. We produce and ship more than 85% of orders locally, in the same country where the products are delivered.
This means that the new European rules for VAT on B2C e-commerce entering into force in July 2021 will minimally affect how Gelato charges VAT. The impact will be noted for the orders not produced locally, in the same country as where they are delivered within the European Union, and, therefore are subject to cross-border taxation.
The new IOSS/OSS requires online sellers to collect VAT based on the VAT rate of the Member State to which the goods are dispatched. This new legislation will affect our customers as follows:
- If your order is printed and delivered in the same EU country (e.g. produced in Germany and delivered to Germany), the new regulation has no impact either on Gelato or our customers. More information on how Gelato charges VAT on domestic transactions within the EU can be found here.
- If your order is printed in one EU country and delivered to another EU country (e.g. produced in Germany and delivered to France) and you don’t have a valid EU VAT ID, Gelato will continue collecting VAT based on the VAT rate of the country where the goods are dispatched to. More information on how Gelato charges VAT on cross-border transactions within the EU can be found here.
- If your order is printed outside the EU and delivered to a country in the EU (e.g. printed in the UK and delivered to Germany) and you don’t have a valid EU VAT ID, Gelato will collect VAT in the destination country, calculating the VAT charge with the VAT rate of the country of destination. Gelato will no longer apply a 0% VAT rate for export sales with non-business customers, complying with the new legislation in place. More information on how Gelato charges VAT on cross-border transactions within the EU can be found here.
- If your order is produced outside the country in which you are VAT registered and you have a valid EU VAT ID, a 0% VAT charge will be applied.
More information about this is already available in our Help Center, including a link to a detailed description of the new rules by Ernst & Young (EY).