DOCS

Tax remittance

Tax remittance

How Zonos manages cross-border tax collection and remittance.

Since 2018, countries around the world have steadily introduced requirements for foreign sellers to collect and remit taxes on cross-border orders. Each country has its own rules, thresholds, and registration requirements—making compliance increasingly complex for global ecommerce sellers.

Zonos handles this complexity end to end. Whether you use the Landed Cost guarantee or manage your own tax IDs, Zonos provides accurate tax calculations, threshold monitoring, and remittance across all supported countries.

What Zonos handles 

Zonos provides the following tax remittance services:

  • Accurate calculations — Zonos calculates the correct tax for each order based on destination country rules and your registered tax IDs.
  • Remittance — With the Landed Cost guarantee, Zonos remits collected taxes directly to the appropriate tax authority using Zonos tax IDs. For merchants remitting independently, Zonos provides tax reports to support your quarterly filings.
  • Registration assistance — Zonos can assist with obtaining tax IDs in supported countries.
  • Reporting — Dashboard provides tax filing reports to support remittance.
Simplify compliance with the Landed Cost guarantee

With the Landed Cost guarantee, Zonos uses its own tax IDs to remit taxes on your behalf in most supported countries—no registration required on your part.

To configure tax IDs in Dashboard, see Settings → Tax IDs.

European Union (IOSS)

The EU VAT scheme went into effect July 1, 2021, eliminating the €22 de minimis. All shipments into the EU are now subject to VAT regardless of value. For low-value orders (under €150), the Import One-Stop Shop (IOSS) method allows sellers to register in a single EU member country and remit all EU VAT monthly—with expedited customs clearance. High-value orders (over €150) are subject to duty and VAT through the carrier DDP process.

  • Rate: Varies by EU member country (typically 20–25% VAT)
  • IOSS threshold: Orders under €150
  • With Landed Cost guarantee: Zonos uses its own IOSS number—no registration required
  • Without LCG: Register for IOSS in an EU member country, then add your IOSS number in Settings → Tax IDs

For detailed EU VAT information, see the EU VAT scheme guide.

United Kingdom (VAT)

The UK implemented its own VAT scheme effective January 1, 2021, following Brexit. All low-value orders (under 135 GBP) into the UK are subject to 20% VAT collected at the point of sale. There is no minimum sales threshold—any seller shipping low-value orders to the UK must register with HMRC and remit quarterly. Failure to comply is tax evasion.

  • Rate: 20% VAT
  • Low-value threshold: Orders under 135 GBP; no minimum sales threshold to trigger registration
  • With Landed Cost guarantee: Zonos uses its own UK VAT number—no registration required
  • Without LCG: Register with HMRC for a VAT number. You may also choose to block low-value orders entirely to avoid registration.
  • No UK bank account required for registration or remittance

For configuration options in Dashboard, see Settings → Tax IDs. For detailed UK VAT information, see the UK VAT scheme guide.

Australia (GST)

Effective January 1, 2018, foreign online retailers selling low-value goods (under 1,000 AUD per item) to Australian consumers must collect and remit 10% GST once they reach 75,000 AUD in annual sales to Australian consumers. Wholesale and B2B transactions are exempt from the threshold calculation.

  • Rate: 10% GST
  • Low-value threshold: Under 1,000 AUD per item
  • Registration threshold: 75,000 AUD in annual sales to Australian consumers
  • With Landed Cost guarantee: Zonos handles compliance end to end
  • Without LCG: Obtain an AUSid, register for Simplified GST, and add your ARN in Settings → Tax IDs; Zonos remits quarterly to the Australian Tax Office using your registration number

For detailed Australian GST information, see the Australia country guide.

New Zealand (GST)

Effective December 1, 2019, foreign retailers supplying more than 60,000 NZD in low-value goods (under 1,000 NZD each) directly to New Zealand consumers in a 12-month period must register and collect GST. Once registered, the 1,000 NZD de minimis no longer applies to your business—all orders to New Zealand become taxable.

  • Rate: 15% GST (a 1.42% credit card processing fee is included in calculations, making the effective rate appear as ~15.213%)
  • Low-value threshold: Under 1,000 NZD per item
  • Registration threshold: 60,000 NZD per 12-month period
  • With Landed Cost guarantee: Zonos handles compliance end to end
  • Without LCG: Register for New Zealand GST (obtain an IRD number) and add it in Settings → Tax IDs; Zonos remits quarterly to New Zealand Inland Revenue

For detailed New Zealand GST information, see the New Zealand taxation guide.

Singapore (Extended OVR)

Singapore's Extended OVR (Overseas Vendor Registration) regime requires foreign sellers to collect GST and register once they exceed 100,000 SGD in low-value goods sales or 1 million SGD globally. Low-value goods are those valued at 400 SGD or less.

  • Low-value threshold: 400 SGD per item (default) or CIF value of the entire order (consignment)
  • Registration thresholds: 100,000 SGD in low-value goods OR 1 million SGD globally
  • With Landed Cost guarantee: Zonos handles compliance end to end (consignment value is used for all Singapore orders)
  • Without LCG: Register via the Singapore government portal and add your GST number in Settings → Tax IDs; remit quarterly to IRAS

Failure to register and pay GST in Singapore is tax evasion, and penalties may apply. For detailed Singapore OVR information, see the Singapore OVR GST guide.

Norway (VOEC)

Norway's VOEC (VAT on E-Commerce) scheme requires foreign sellers to collect and remit Norwegian VAT on low-value goods. With the Landed Cost guarantee, Zonos handles registration and remittance using Zonos' own VOEC number—no registration required on your part.

  • With Landed Cost guarantee: Zonos uses its own VOEC number—no registration required

For detailed Norway VOEC information, see the Norway VOEC scheme guide.

France (Low-Value Levy)

Effective March 1, 2026, France implemented a 2 EUR levy per unique HS code on all inbound cross-border parcels valued under 150 EUR from outside the EU. This levy is separate from—and in addition to—EU VAT collected via IOSS.

  • Amount: 2 EUR per unique HS code per parcel (e.g., a parcel with shoes and two hats = two unique HS codes = 4 EUR)
  • Threshold: Parcels valued under 150 EUR from outside the EU (intra-EU shipments excluded)
  • First remittance: Due April 24 (covering March 2026), for IOSS users

How collection works depends on whether you use IOSS:

  • If you use IOSS: You are responsible for collecting and remitting (honor system, similar to US sales tax for remote sellers). The levy is not collected at delivery; remittance is handled separately from the shipment.
  • If you ship DAP (no IOSS): The carrier collects the levy from the recipient at delivery. No fiscal representative is required.

With Landed Cost guarantee: Zonos calculates the levy per unique HS code and remits via its fiscal representative in France—no additional action required on your part.

Without LCG:

  • Using your own IOSS number: Zonos calculates the levy, but remittance is your responsibility via a fiscal representative accredited for your organization. Accreditation takes 3–4 weeks.
  • Shipping DAP: The carrier collects the levy from the recipient at delivery.

As of July 1, 2025, the EU removed its de minimis threshold and introduced a 3 EUR duty fee on low-value imports. Parcels entering France are now subject to both the 2 EUR France levy and the 3 EUR EU fee.

Chile (IVA)

Chile's IVA (Impuesto al Valor Agregado) scheme requires foreign sellers to collect and remit Chile GST on low-value goods. When conditions are met, Zonos adds a remittance to the landed cost response and merchants remit monthly.

Remittance applies when all of the following are true:

  • The ship-to country is Chile

  • Zonos has a Chile tax registration or the merchant uses Zonos duty/tax

  • The order is for personal use

  • The individual item value is 500 USD or less

  • The HS code does not fall under alcohol or tobacco (codes starting with 24, 2203–2208)

  • Rate: Current Chile IVA rate

  • Low-value threshold: 500 USD per item

  • Remittance frequency: Monthly filing

  • With Landed Cost guarantee: Zonos handles remittance on your behalf

US sales tax

US sales tax is managed differently from international tax schemes. Zonos supports both domestic US sales tax calculations and, on a case-by-case basis, cross-border sales into the US. State-level tax IDs are configured in Dashboard.

  • Domestic US: Select the states where you need sales tax calculated in Settings → Tax IDs
  • Cross-border US (invite only): Contact Zonos to discuss eligibility for cross-border US tax remittance

For configuration details, see Settings → Tax IDs.

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