How Import VAT Works on CardNexus

When you buy or sell cards across borders, import VAT sometimes shows up on the order — collected at checkout, withheld from the seller payout, and remitted by CardNexus to the destination country’s tax authority. This guide explains when it kicks in, why, and what each side sees.

It applies to two specific scenarios:

• Goods entering the European Union from a non-EU seller (the IOSS scheme)
• Goods entering the United Kingdom from a non-UK seller (the UK OMP scheme)

Outside those two cases, CardNexus does not charge import VAT — the order is handled under the normal rules (domestic sale, intra-EU sale, or a non-EU order where local customs may still apply at delivery).

What you’ll see as a buyer

If your order falls under one of the schemes above, you’ll see an extra line in the cart labelled Import VAT, with a tooltip explaining that CardNexus collects and remits it on your behalf.

The amount is calculated using the VAT rate of your delivery country (e.g. 20% in France, 19% in Germany, 20% in the UK). It is applied to the goods + shipping combined, not the goods alone.

When you will not see import VAT

• You’re buying from a seller in the same VAT zone as you (e.g. an EU buyer buying from an EU seller, or a UK buyer from a UK seller).
• The order’s goods value is above the threshold (€150 for the EU, £135 for the UK). In that case the parcel goes through standard customs clearance and the courier collects VAT and duties on delivery.
• The seller is an individual / hobbyist seller (non-professional). The schemes only apply to professional sellers.
• You are buying as a business (your CardNexus account is marked as a professional buyer). Business-to-business sales are handled under reverse charge.

What you’ll see as a seller

If you’re a professional seller and you ship to a buyer in another VAT zone where one of these schemes applies, you’ll see two things:

1. An Import VAT line on the order page showing how much CardNexus collected from the buyer and is withholding from your payout.
2. A banner on the order details with the IOSS or UK VAT number you must write on the parcel for customs.

The IOSS / UK VAT number on the parcel

This is the most important step for sellers. Customs needs to see the number on the package to release it without re-charging VAT to the buyer.

• For EU-bound parcels under the IOSS scheme, write the IOSS number on the customs declaration (CN22/CN23 form or the courier label).
• For UK-bound parcels under the UK OMP scheme, write the UK VAT (HMRC) number in the same place.

The packing slip CardNexus generates already includes the number in the right place — printing and attaching the packing slip is the easiest way to comply.

Why the VAT is withheld from your payout

Under both schemes, CardNexus is legally responsible for collecting and remitting the VAT to the tax authority of the buyer’s country. To do that, we withhold the exact amount from your seller payout, then remit it to the authority on the appropriate filing cycle (monthly for IOSS, quarterly for UK OMP).

You are not double-paying VAT — your invoicing to the buyer is treated as VAT-free (CardNexus is deemed the supplier for the purposes of VAT). The collected VAT never belongs to you.

The thresholds explained

“Goods value” means the intrinsic value of the cards — shipping is not counted toward the threshold (but is part of the VAT calculation once the order is eligible).

If an order exceeds the threshold, CardNexus does not apply the scheme. The buyer will need to pay VAT and any customs duties to the courier on delivery instead.

Edge cases & FAQ

I’m a non-professional seller — does any of this apply to me?

No. Both IOSS and UK OMP only apply to professional (PRO) sellers. If your CardNexus account is a regular individual seller, CardNexus has no VAT obligation on your sales and no Import VAT line will appear on your buyer’s checkout.

My buyer is a business — why is there no Import VAT?

Business-to-business cross-border sales are handled under reverse charge — the buyer is responsible for accounting for the VAT in their own return. CardNexus does not collect or remit it.

Why does my order to another EU country show no Import VAT line?

The IOSS scheme only applies when goods are imported into the EU from a non-EU country. EU-to-EU sales follow the regular intra-EU VAT rules, which the seller handles directly (under their own VAT registration, OSS, or distance-selling rules depending on their country and turnover).

The buyer’s country charges VAT at a rate I don’t recognise

CardNexus uses the destination country’s standard VAT rate at the time of checkout, sourced from the official tax-rate database. This may differ from the seller’s country rate. For example, a UK buyer pays UK VAT (20%) regardless of where the seller is based.

Can I see how much VAT CardNexus remitted in total for my sales?

Yes — your seller dashboard under Reports → VAT shows the total Import VAT collected and remitted on your behalf, broken down by month and destination country.

What happens if the parcel is returned or refunded?

If the order is fully refunded before CardNexus has filed the VAT return for that period, the VAT is also refunded to the buyer. After the filing is closed, a correction is processed on the next filing cycle.

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