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Import One Stop Shop - (IOSS)registration made easy.

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Import One Stop Shop - IOSS

What is IOSS?

The Import One-Stop Shop (IOSS) is the electronic portal businesses can use since 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods.

According to the VAT rules applicable up until 1 July 2021, no import VAT has to be paid for commercial goods of a value up to EUR 22.

The new VAT e-commerce rules abolish this provision as of 1 July 2021. Thus, from 1 July 2021, all commercial goods imported into the EU from a third country or third territory is subject to VAT irrespective of their value.

The IOSS allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU as it was previously the case (for products over 22 EUR).

What has changed on 1 July 2021?

Online Sellers

 

Effective July 1, 2021, a significant change was implemented in the way VAT (Value Added Tax) applies to imported goods entering the European Union. Previously, a VAT exemption existed for goods with a combined value not exceeding EUR 22. This exemption simplified customs procedures for low-value items. However, the regulation was scrapped, resulting in all imported goods, regardless of their value, becoming subject to VAT.

The Import One-Stop Shop (IOSS) simplifies the way Value Added Tax (VAT) is collected, declared, and paid for low-value goods (under EUR 150) sold from anywhere (EU or non-EU) to customers within the European Union.

This revision improves the clarity by:

  • Combining the first two sentences into one for smoother flow.
  • Replacing “sold from a distance” with the simpler “sold” since IOSS applies to all distance sales.
  • Specifying that IOSS applies to sellers from “anywhere” (EU or non-EU) for better understanding.

Electronic Interfaces

 
Important changes to Value Added Tax (VAT) regulations for online sales to the European Union (EU) took effect on July 1, 2021.

  • VAT on all imports: Previously, goods imported into the EU for a value less than EUR 22 were exempt from VAT. This exemption was removed, meaning all imported goods are now subject to VAT.
  • Electronic interfaces and VAT liability: If a platform or marketplace (considered an “electronic interface”) facilitates the sale of goods to EU buyers, the platform may be held liable for collecting and paying VAT on those sales.

The Import One-Stop Shop (IOSS) simplifies VAT compliance for businesses selling distance goods valued under EUR 150 to EU customers. Here’s how:

  • Simplified registration: Businesses can register for IOSS in one EU member state, eliminating the need to register for VAT in every country they sell to.
  • VAT included in purchase price: When a consumer in the EU purchases goods under EUR 150 through IOSS, the VAT is already included in the price, avoiding unexpected customs charges or delays.

IOSS is not mandatory, but it offers a streamlined approach for businesses complying with EU VAT regulations.

Which supplies of goods does the IOSS cover?

Online Sellers

 

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).

Electronic Interfaces

 

When an electronic interface facilitates the sales of imported goods from a supplier and the goods 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 EUR 150 (low value goods);
  • not subject to excise duties (typically applied to alcohol or tobacco products).

The electronic interface is considered to have facilitated the sale of imported goods when it allows a buyer and a seller to enter into contact via that electronic interface, where the end result is the sale of goods to that buyer.

How does the IOSS work?

Online Sellers

 
Sellers registered in the IOSS need to apply VAT when selling goods destined for a buyer in an EU Member State. The VAT rate is the one applicable in the EU Member State where the goods are to be delivered. Information on the VAT rates in the EU is available on both the European Commission website and on the websites of national tax administrations

Electronic Interfaces

 

Electronic interfaces registered in the IOSS have to pay the VAT due on sale by the buyer instead of the actual taxable seller in an EU Member State.

The VAT rate is the one applicable in the EU Member State where the goods are to be delivered. Information on the VAT rates in the EU is available on both the European Commission website and on the websites of national tax administrations

How can you register for the IOSS?

Online Sellers

 

From 1 April 2021, you can register businesses on the IOSS portal of any EU Member State. If businesses are not based in the EU, they will normally need to appoint an EU-established intermediary to fulfil their VAT obligations under IOSS. The IOSS registration is valid for all distance sales of imported goods to buyers in the EU. You can start using the IOSS only for the goods sold as from 1 July 2021.

Electronic Interfaces


The electronic interface can register on the IOSS portal of any EU Member State since 1 April 2021. If the electronic interface is not established in the EU, it normally needs to appoint an EU-established intermediary to fulfil the VAT obligations under IOSS.

This IOSS registration is valid for all distance sales of imported goods to buyers in the EU.

You can start using the IOSS only for the goods sold since 1 July 2021.

What you need to do if you use the IOSS?

Online Sellers

 
 
  • provide the information required for customs clearance in the EU, including the IOSS VAT identification number to the person declaring the goods at the EU border;
  • show/display the amount of VAT to be paid by the buyer in the EU, at the latest when the ordering process is finalised;
  • ensure the collection of VAT from the buyer on the supply of all eligible goods with final destination in an EU Member State;
  • make sure that eligible goods are shipped in consignments not exceeding the EUR 150 threshold;
  • to the extent possible, show on the invoice the price paid by the buyer in EUR;
  • submit an electronic monthly VAT return via the IOSS portal of the Member State where you are identified for IOSS;
  • make a monthly payment of the VAT declared in the VAT return to the Member State where you are identified for IOSS;
  • keep records of all eligible IOSS sales and/or sales facilitated over 10 years;
 

 

 

Electronic Interfaces

 
 
  • collaborate with the actual seller of the good(s) to ensure that the information required for customs clearance in the EU, including the IOSS VAT identification number, reaches the EU customs where the goods will be imported to.
  • show/display the amount of VAT to be paid by the buyer in the EU, at the latest when the ordering process is finalised;
  • ensure the collection of VAT from the buyer on the supply of all eligible goods with a final destination in an EU Member State;
  • make sure that eligible goods are shipped in consignments not exceeding the EUR 150 threshold, even if this total is only achieved by more than one item;
  • to the extent possible, show on the invoice the price paid by the buyer in EUR;
  • submit an electronic monthly VAT return via the IOSS portal of the Member State where you are identified for IOSS;
  • make a monthly payment of the VAT declared in the VAT return to the Member State where you are identified for IOSS;
  • keep records of all eligible IOSS sales and/or sales facilitated over 10 years;