How to handle e-commerce cross-border accounting: general considerations

Accounting is never simple and cross-border can make it even more so. EAS Solutions aim to ease your pains and costs of accounting when selling cross-border

IOSS is applicable only to physical goods, OSS for goods and services, and Non-Union OSS only for electronic goods and services sold from outside the EU. IOSS and OSS schemes, and IOSS and non-Union OSS can be used simultaneously.

The shipping costs and other incidental costs are handled exactly the same as the goods/services sold, with VAT applied to them.

EAS applies the following rules for accounting for shipping costs:

  • All shipping costs are calculated on item level. Single shipping cost is weighted on the physical
  • items in the order, shipping costs are not applied to downloadable if they are sold in the same
  • order with physical goods
  • Irrespective of the VAT scheme (IOSS, OSS, non-Union, domestic sale) EAS applies the VAT rate to shipping costs which is applied to the underlying item. Thus, if in the sales order one item has reduced VAT rate applied during landed cost calculation the respective part of the shipping cost will be subject to the same VAT rate.

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