Some jurisdictions implement low value import good thresholds on a per item basis, and others implement it on a per consignment basis. Knowing which consignment an item belongs to is crucial for accurate assessment of liability and subsequent tax compliance actions.

You can use the Consignment ID (consignment_id ) field to specify an ID for a consignment in you Calculate Tax or  Store Transaction requests.

Liability Determination

The consignment_id  field specifies an ID for a consignment. This groups transaction lines that belong to the same consignment together. This ID is used to support accurate liability determination and assignment. If the consignment_id field is not specified, Vertex for Marketplaces assumes all items in the transaction, with the same ship-from country and seller code, are part of a single consignment.

Country Variations

In different jurisdictions, the number of consignments will have different consequences.

Import One Stop Shop (IOSS) (European Union (EU))

Import One Stop Shop (IOSS) is a scheme to facilitate imports from outside the European Union (EU).

If all the goods in a consignment are below 150 Euro (EUR), then the goods are eligible for IOSS.

If the consignment exceeds 150 EUR, it will no longer be eligible for IOSS and will follow the standard importation process, with import VAT (and duties, where applicable) to be paid at customs.

VAT on e-Commerce (VOEC) (Norway)

In Norway, if all the goods in a consignment are below 3,000 Norwegian Krona (NOK), then they are eligible for VAT on e-Commerce (VOEC).

If only some of the items in a consignment are below the 3,000 NOK threshold, then the seller or marketplace can declare the goods that are under the threshold as qualifying for VOEC. The non-qualifying goods are charged VAT import tax.

Alternatively, the seller or marketplace can declare all the goods as not qualifying for VOEC and the VAT import tax is charged on all goods instead.