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ePAL Global

Version v1.0
Date January 2026

Frequently asked questions

Click a tier, then a section, then a question to reveal only what you need. This page is structured to support real-time self-service and reduce support requests.

This content is FAQ v1.0. It represents ePAL's understanding of current relevant rules, regulations and legislation at January 2026.
Merchant FAQs
ePAL general
1What problem does ePAL actually solve for cross-border merchants?

ePAL ensures the price shown at checkout reflects the true, compliant total cost of delivering goods cross-border, including product price, shipping costs, destination VAT, customs duties where applicable and shipping tax logic. This prevents delivery-time surprises, failed shipments and post-sale disputes.

2Is ePAL a tax calculator, a customs engine or something else?

ePAL is a fully landed cost orchestration engine. It coordinates product classification, VAT logic, IOSS eligibility, customs duty rules, shipping tax treatment and FX validation in real time, rather than calculating a single tax in isolation.

3What does “fully landed cost” mean in practical terms?

Fully landed cost is the total amount a buyer must pay to receive goods, including product price, shipping costs, destination VAT, customs duties where applicable and any applicable tax on shipping, calculated using destination-country rules.

4Who is ePAL designed for: merchants, platforms, marketplaces or carriers?

ePAL is designed for merchants, eCommerce platforms and marketplaces that need accurate cross-border pricing at checkout. Carriers benefit indirectly from cleaner data and fewer failed deliveries.

5Which countries does ePAL support today?

ePAL supports EU destinations, including non-EU to EU and EU-to-EU shipments.

6Do I still need ePAL if I already collect VAT?

Yes. Collecting VAT alone does not ensure correct IOSS eligibility, customs duty handling, shipping tax apportionment or FX compliance. ePAL addresses the gaps between these systems.

7Do I still need ePAL if I already ship DDP?

Yes. DDP requires every tax and duty detail to be correct upfront. ePAL ensures those calculations are accurate, defensible and consistent across destinations.

8What happens if I keep my current setup and do nothing?

You remain exposed to misclassified orders, failed IOSS declarations, delivery-time charges, refused shipments and avoidable support costs.

9How is ePAL different from typical checkout tax plugins?

Most plugins calculate VAT only. ePAL calculates VAT, IOSS eligibility, customs duties and shipping tax logic together, using destination-country rules.

10How is ePAL different from carrier duty estimators?

Carrier estimators are typically post-checkout estimates. ePAL provides pre-checkout, defensible pricing aligned with customs valuation rules.

11Does ePAL work in real time during checkout?

Yes. All calculations are performed in milliseconds and are suitable for live checkout flows.

12How accurate are ePAL calculations compared to carriers or marketplaces?

ePAL uses official classification, VAT, duty and FX rules, rather than heuristics, making outcomes more predictable and auditable.

13How is ePAL priced?

ePAL pricing is transparent and predictable, designed to scale with cross-border activity rather than penalise success.

14Is pricing based on order volume or basket value?

Pricing models are structured to reflect usage and value, not individual tax outcomes.

15Are there minimum fees or long-term contracts?

ePAL is designed to be accessible to growing merchants, without enterprise-style lock-ins.

16Does ePAL pricing include regulatory updates?

Yes. Regulatory changes are handled centrally and included.

17Does ePAL replace customs brokers or tax advisors?

No. ePAL automates calculation and decision logic but does not replace legal or advisory roles.

18Who remains legally responsible for tax and customs declarations?

The merchant remains legally responsible. ePAL provides calculation logic and decision support, not legal representation.

19Does ePAL act as a tax intermediary or hold funds?

No. ePAL does not collect taxes, hold funds or submit returns.

20What does the merchant still need to do after integrating ePAL?

Ensure product data is accurate and submit required VAT or customs filings as normal.

Fully landed cost
21What does “fully landed cost” actually include?

Product price, shipping cost, destination VAT, customs duties where applicable and any applicable tax on shipping, calculated according to destination-country rules.

22How is fully landed cost different from DDP?

DDP is a delivery term. Fully landed cost is the calculation discipline that makes DDP work correctly.

23Why are “estimated import fees” not good enough?

Estimates fail when customs apply different rules than assumed, leading to charges at delivery or rejected shipments.

24Can fully landed cost differ for the same product depending on destination?

Yes. VAT rates, duty rules and shipping tax treatment vary by country.

25Can fully landed cost differ depending on basket composition?

Yes. Mixed baskets can trigger different VAT rates, duty exposure and shipping tax apportionment.

26How does ePAL handle mixed VAT rates in one basket?

Each line item is calculated independently using its own VAT rate (including special rates) and Duty rate, with shipping tax apportioned where required by destination rules.

27How does ePAL support partial refunds or cancellations?

Calculations are itemised, allowing accurate recomputation when part of an order changes.

IOSS
28Can ePAL detect IOSS ineligibility before checkout?

Yes. ePAL validates IOSS eligibility in real time using destination VAT rules, automatic removal of any origin-country tax, official EU customs FX rates and intrinsic value thresholds.

29What exactly counts towards the €150 IOSS threshold?

The intrinsic value of goods, calculated in EUR using destination VAT rules after removal of any origin-country tax and converted using official EU customs FX rates.

30Is shipping included in the €150 threshold calculation?

Shipping is excluded from intrinsic value but can affect VAT calculations.

31Is VAT included in the €150 threshold calculation?

Yes. Destination VAT is included in intrinsic value after any origin-country tax has been removed.

32How does FX affect IOSS eligibility and how does ePAL ensure the correct FX rate is used for IOSS calculations?

IOSS eligibility must be tested using official EU customs FX rates, not checkout FX. ePAL removes any origin-country tax, converts values using the correct monthly customs rate and applies destination VAT automatically.

33Which exchange rate does ePAL use for IOSS eligibility testing if the buyer pays in another currency than EUR?

The official EU customs exchange rate published for the relevant month.

34What happens if my basket looks under €150 at checkout but fails at Customs?

Without ePAL, the shipment is reclassified. With ePAL, this risk is detected before checkout.

35How does ePAL handle products that attract Excise Duties for IOSS eligibility purposes?

ePAL identifies excise exposure and flags the order as ineligible for IOSS where applicable.

Shipping
36Is VAT always charged on shipping?

No. VAT on shipping depends on destination-country rules and basket composition.

37What is shipping tax apportionment & what are the possible variations for calculating it?

Some countries apportion shipping VAT across items based on their VAT rates, others apply the highest rate or standard rate to the shipping charge.

38Does shipping VAT affect the €150 IOSS threshold?

Shipping VAT does not form part of intrinsic value but can influence overall VAT treatment.

39What happens if shipping is included in the product price or offered as “free shipping”?

Where shipping is included in the product price or a basket is sold with “free shipping”, no separate shipping VAT calculation is required, according to EU law or National regulations. VAT is calculated intrinsically as part of the product price. Because ePAL calculates VAT per Product line item, this is compliant with the Regulations.

Compliance
40Is ePAL compliant with EU VAT and Customs regulations?

Yes. Calculations are aligned with EU VAT, IOSS and customs valuation rules.

41How does ePAL determine the correct VAT rate per product?

VAT rates are determined by product classification and destination country.

42If my prices already include Tax in the country I ship from, what does ePAL do to calculate destination VAT?

ePAL removes any origin-country tax and recalculates VAT using destination-country rules.

43Can ePAL provide audit trails?

Yes. Calculation steps, assumptions and applied rates are recorded for traceability.

44Who is responsible if input data is incorrect?

The merchant remains responsible for data accuracy.

45Do I need to know my HS codes to use ePAL?

HS6 codes are required for accurate destination-level product classification and subsequent Tax and Duty calculation. ePAL automates identification of correct classification codes from product data.

46Some countries require more digits than others. Can ePAL figure out the correct digits?

Yes. ePAL applies country-specific classification depth automatically.

Technical FAQs
47How does ePAL integrate with my checkout?

Via API or platform plugins, designed for synchronous checkout use.

48What data does ePAL require?

Product description, price, origin, destination and shipping context.

Carrier and logistics FAQs
49Can ePAL provide dynamic shipping options and prices for all Countries (either supplementing or replacing my existing arrangements for Countries not covered by them)?

Yes. ePAL can optionally retrieve and provide dynamic, real-time shipping rates for any country. This allows merchants to supplement or replace existing carrier arrangements and is required to accurately calculate shipping tax and fully landed cost.

50Can ePAL help to reduce customs clearance delays?

Yes. Accurate classification, valuation and tax logic reduce inspection, rejection and rework risk.

Shopper-facing FAQs
51Does the price I see include all taxes and duties?

Yes. The price shown reflects the full cost of delivery.

This assumes the merchant has configured ePAL correctly and provided required product-level information.
52Will I have to pay anything on delivery?

No. All required charges are included at checkout.

This assumes the merchant has configured ePAL correctly and provided required product-level information.
53Why does the price change when I change my delivery country?

Taxes, duties and shipping costs vary by destination and, because shipping costs might also change, the tax on shipping will also be different. This is required to calculate the correct fully landed cost (the true total price).

This assumes the merchant has configured ePAL correctly and provided required product-level information.
54Can I trust that the price shown is final?

Yes. The price is calculated using the same rules customs authorities apply.

55Will ePAL charge me any additional fees?

No. ePAL is a business-to-business service charged to merchants and sellers, not to shoppers.