Import One Stop Shop (IOSS) Scheme
In 2021, along with the One Stop Shop (OSS) scheme, the EU introduced the Import One Stop Shop (IOSS) scheme. This allows both EU and non-EU businesses to report the value due on eligible B2C distance sales of imported goods to EU consumers in a single monthly return and VAT payment.
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The IOSS is an online portal, working in parallel to the One Stop Shop, that allows online businesses to report distance sales of imported goods with a value below EUR 150.
This scheme was introduced as an optional simplification for ecommerce businesses to remit the VAT due on their online sales of imported low value goods, particularly since the low value consignment relief of EUR 22 was abolished as of 1 July 2021.
Who can register for IOSS?
Everyone can IOSS register, from online sellers to marketplaces, as long as the right requirements and reporting obligations are fulfilled.
How does IOSS work?
Under the IOSS, a single monthly payment and IOSS return will be due for the sum of the supplies covered by the scheme.
Which transactions are covered by the IOSS scheme?
Distance sales below EUR150
The new IOSS scheme covers distance sales of imported goods in consignments with a value up to EUR 150. Should the intrinsic value of goods ordered by an EU consumer go over EUR 150, this consignment will no longer be eligible for IOSS and instead, VAT will be due upon importation.
What is included in the intrinsic consignment value?
In this context, the intrinsic value of the goods should be the price of the goods themselves when they are purchased by an EU customer. This value excludes transport and insurance costs unless these are included in the price of the goods, rather than being displayed separately. Any other charges and taxes are also excluded from the value calculation.
Which EU VAT scheme is right for you?
Take our quick quiz to find out whether you’re eligible for the OSS or IOSS schemes.
What are your obligations under IOSS?
Once you are registered on the IOSS scheme, you must use it for all eligible supplies. VAT becomes due at the time when you accept payments from EU customers. You should apply the VAT rate of the EU country where your customers are based, which is where the goods are delivered to.
A monthly IOSS return and VAT payment will be due to remit the VAT collected from EU consumers at the point of sale.
Shipping your goods into the EU when using IOSS
After charging the due VAT at the checkout, businesses using IOSS will be able to ship the goods VAT-exempt into the EU. The seller’s IOSS identification number will need to be securely communicated to the person in charge of declaring the goods at the EU border.
As VAT would have already been collected at the point of sale by the seller, the parcel will be customs-cleared without VAT being due upon importation.
Should you be appointing an IOSS intermediary?
Under the new rules, an IOSS intermediary is normally required for non-EU businesses. The intermediary is a new type of representative for IOSS purposes, who is responsible for registering your business for IOSS, submitting your IOSS returns on your behalf, and will be jointly liable for your IOSS VAT payments.
For EU-based businesses, appointing an IOSS intermediary is optional only.
Start your IOSS registration today
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