Our IOSS offers a risk-free solution for European businesses that want to trade with other countries in European Union
Starting on April 2021, businesses may register on the IOSS portal of any EU member state.
What is IOSS?
All 27 member states of the European Union began implementing the new VAT system, Import One Stop Shop, or IOSS, on July 1, 2021.
IOSS is a streamlined VAT reporting approach in which a single VAT number is registered and used to record sales for all EU member states. This new model only applies to sales when the total value of transported products is less than 150 euros.
During the customs declaration procedure, the whole amount as well as the invoice and IOSS identification number must be submitted. This will enable your cargo to be free from VAT throughout the import procedure, thereby accelerating processing and shipping timelines.
Then, you must declare this import VAT amount at the time of your VAT return filing.
Here are 3 Simple Steps to Get Started with IOSS
Once registered, you will receive an IOSS ID number that must be printed on all EU shipments valued at more than 150 EUR
To utilize IOSS, you must compute VAT at checkout and provide an invoice with your package at customs.
IOSS returns must be submitted monthly. To submit IOSS returns, countries outside the EU may need to employ an intermediary.
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For more information on IOSS, please visit the EU Taxation and Customs Union web site, or contact us for consultation.
The IOSS enables suppliers and electronic interfaces selling imported goods to EU consumers to collect, declare, and pay the VAT to the tax authorities rather than the buyer paying the VAT at the time the items are imported into the EU (for products over 22 EUR).
Starting on April 1, 2021, businesses may register on the IOSS portal of any EU member state. In order to fulfill their VAT duties under IOSS, non-EU-based enterprises are typically required to work with an intermediary situated in the EU. The IOSS registration is valid for any imports sold to EU consumers.
The IOSS allows the collection, declaration, and payment of VAT by merchants conducting remote transactions of imported items with EU purchasers.
The IOSS also simplifies the procedure for the customer, who is only paid at the moment of purchase and is thus not subject to unexpected delivery expenses.
If the vendor is not registered with the IOSS, the buyer must pay the VAT and, often, a transporter-imposed customs clearance cost.
Import One Stop Shop services are a great way to save time and money. With our IOSS services, you can export your products to various countries without having to deal with the hassle of customs clearance.
We offer all of the necessary services and paperwork that are needed to export your product, including:
- Export clearance certificates
- Customs value declaration forms
- Freight/Cargo Insurance Forms
- Transport documents for international shipments
- Customs exemption forms
- Export permits or licenses
- Import permits or licenses
Since July 1, 2021, businesses may utilize the Import One-Stop Shop (IOSS) to meet their VAT e-commerce obligations on distance sales of imported items.
According to the VAT regulations in effect until July 1, 2021, import VAT is exempt for items with a value of up to 22 euros.
The new VAT e-commerce regulations eliminate this provision as of July 1, 2021. Thus, beginning on July 1, 2021, regardless of their worth, all commercial products imported into the EU from a third nation or territory will be liable for VAT.
Beginning July 1, 2021, regardless of their worth, all commercial products imported into the EU from a third nation or territory will be subject to VAT.
In the following instances, you are exempt from charging VAT on sales of goods:
- You sell multiple items to the same customer, and these items are transported in a box that exceeds EUR 150. These items will be taxed upon importation into an EU Member State.
- Your remote product sales are supported through an electronic interface, such as an online marketplace or platform. In this case, the electronic interface is liable for the VAT.
What Product Shipments does IOSS apply to ?
The IOSS covers the sale of goods from a distance that are:
- dispatched or transported from outside of the EU at the time they are sold;
- dispatched or transported in consignments with a value not exceeding a total of EUR 150 (low value goods) even if the order contains more than one item;
- not subject to excise duties (typically applied to alcohol or tobacco products).
When selling items bound for an EU Member State buyer, IOSS-registered sellers are required to apply VAT. The appropriate VAT rate is determined by the EU member state where the goods will be delivered. Information on the VAT rates in the EU is accessible on the websites of both the European Commission and national tax agencies.
- Provide the information necessary for customs clearance in the EU to the person declaring the goods at the EU border, including the IOSS VAT identification number.
- Display the amount of VAT to be paid by the customer in the EU once the order is finalized.
- Ensure the collection of VAT from the buyer on the sale of all taxable products bound for an EU member state. Ensure that eligible products are transported in consignments that do not exceed EUR 150.
- If feasible, indicate the price paid by the customer in EUR on the invoice.
- File a monthly electronic VAT return using the IOSS site of the member state where you have been designated for IOSS.
- Make a monthly payment of the VAT stated on the VAT return to the member state that has recognized you for IOSS.
- Maintain records of all qualifying IOSS sales and/or sales generated throughout the previous decade.
You can use IOSS for any EU shipping with a total order value of 150 EUR or more. Therefore, if the total value of your cargo is less than 150 EUR and you are registered with IOSS, you are exempt from paying VAT on import. You will instead offset your import VAT in your VAT return when filing your return.
Unfortunately, IOSS does not apply to items priced at more than EUR 150, so you must adhere to the laws of the nation into which you are importing. In the majority of instances, either the vendor or the customer must pay the import VAT.
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