What is the IOSS?
The IOSS is an electronic portal that allows suppliers to declare and remit the VAT on sales of low-value goods imported and sold to consumers in the EU. It can only be used if:
- The value of the imported goods is €150 or less (This does not apply to excise goods and VAT registration in each country will be required in this instance).
- The goods are located outside the EU at the time of sale and dispatched to private individuals in the EU.
- Goods are sold directly via the suppliers website and not via an online marketplace.
By using this mechanism it allows businesses to charge VAT to the consumer, and prevents the consumer from having to import the goods in their own name. This means that the consumer does not get surprised with having to pay VAT and often shipping charges on receipt of the goods, which usually comes as a surprise to them which results in a negative customer experience and sometimes a loss in revenue if the customer decides to return the goods.
What are the benefits of the IOSS?
The IOSS aims to create a swift, efficient, and transparent import process for both customers and suppliers.
As an online seller of low-value goods, businesses can opt to use this mechanism, which will allow them to charge VAT at the point of sale. This means that the customer will have full cost transparency, and will not be surprised by any unwanted charges or costs at clearance of the goods. Suppliers will also benefit from a reduced customs clearance time that should result in a faster delivery time to customers.
How to register for the IOSS
Sellers can register for the IOSS if they’re established:
- In an EU member state - They will need to apply for the IOSS in the country where they’re established.
- In a non-EU country - They will be required to appoint an VAT intermediary. A VAT intermediary, such as Fiscal Solutions, is a business established in the EU that becomes responsible for declaring and paying the IOSS VAT on behalf of the non-EU seller. The intermediary will also become jointly liable for any VAT owed by the seller.
Selling via online marketplaces (OMPs)
Under the IOSS, all OMPs such as Amazon and eBay will become liable for collecting VAT on all sales of imported low-value goods under €150, facilitated through their website. This means that the sellers obligation to charge VAT is removed. Instead, they will be required to include the marketplace’s IOSS identification number on the import documents to ensure the import tax and customs duty is not charged at clearance into the EU.
How we can help
Fiscal Solutions can help you to utilise IOSS to improve the service that you are providing to your customers. By using our service we will:
- Register you for the IOSS
- Prepare and submit your IOSS Returns
Why use Fiscal Solutions for your IOSS VAT registration?
You will benefit from the unique way in which we provide IOSS registration support throughout the EU via a single point of contact. By employing a multi-lingual team of VAT compliance specialists, it enables us to deal directly with tax authorities in their own language, helping you to achieve your business goals in a timely and efficient manner.
Our specialist team provides clients with the highest calibre of advice, using our in-depth knowledge of the VAT registration process built up from decades of experience.
We help you simplify the complexities of the VAT registration process, address tomorrow’s challenges in regards to the VAT reporting, and take the fear out of the equation. We anticipate problems before they happen and offer tailor-made solutions. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.
Get in touch
Call us today on +44 (0)20 7831 5115 or fill in the form below and a member of our team will be in touch.