Thresholds (UK & IOSS)

For cross-border B2C deliveries, value limits apply above which the tax treatment changes. The extension supports the two most important cases: deliveries to the United Kingdom (Brexit) and imports into the EU from third countries (Import One Stop Shop).

Delivery to the United Kingdom (Brexit)

A feature for EU-based businesses: For B2C deliveries to the United Kingdom (except Northern Ireland), UK VAT (20%) must be charged below GBP 135; above the limit, the delivery is treated at the zero rate.

• Enable VAT threshold calculation for deliveries from the EU to the United Kingdom (brexit_settings/threshold_enabled, default: No): Calculates VAT as long as the threshold is not exceeded.
• Threshold (brexit_settings/threshold_value, default: 135, in GBP): Visible only when the calculation is enabled.
• Disable Cross-Border-Trade (above the threshold) (disable_cbt_brexit, default: Yes): Above the limit, calculates the true net price instead of gross without tax.
• Include shipping in the calculation (brexit_settings/include_shipping, default: Yes): Whether the shipping costs count towards the threshold.

Prerequisites:

1. "Use dynamic customer tax class" is enabled.
2. A UK tax rate of 20% is assigned in the default tax rule (consumer).
3. If GBP is not your base currency: enable GBP under Stores → Configuration → Currency Setup as an allowed currency and set up a daily rate import (e.g. via an exchange rate service with an API key).

If the subtotal is below the threshold, UK VAT is calculated; above it, the extension sets the order to 0% VAT.

Import One Stop Shop (IOSS)

For businesses not based in the EU that deliver to EU consumers: Below EUR 150, the VAT rate of the respective EU country is calculated; above it, the zero rate applies. The calculation is based on the net subtotal.

• Enable VAT threshold calculation for deliveries from outside the EU into the EU (ioss_settings/ioss_threshold_enabled, default: No)
• Threshold (ioss_threshold_value, default: 150, in EUR): Visible only when the calculation is enabled.
• Disable Cross-Border-Trade (above the threshold) (disable_cbt_ioss, default: Yes)
• Include shipping in the calculation (ioss_settings/include_shipping, default: Yes)

Prerequisites: "Use dynamic customer tax class" enabled; if EUR is not your base currency, set up EUR as an allowed currency with a daily rate import.