IOSS (Import One-Stop Shop)
Like OSS, IOSS (Import One-Stop Shop) is designed to simplify the VAT compliance.
Despite the fact that the IOSS, like OSS, is designed to simplify VAT compliance for businesses and reduce the administrative burden of managing VAT obligations, there is a large number of e-commerce business owners who need help understanding it correctly.
Boiled down to a single sentence, IOSS is a scheme that allows EU and non-EU businesses to collect, declare, and pay VAT for their sales up to an intrinsic value of €150, when goods are shipped from outside the EU to customers in the EU (e.g. shipment containing goods valued 125 EUR plus 30 EUR shipping fee, shipped from China to Germany).
IOSS registration offers distinct advantages for both EU and non-EU companies.
EU-based companies can register for IOSS, providing a simplified mechanism for handling VAT related to distance sales of imported goods. By registering, these companies can streamline the collection and payment of VAT for goods whose intrinsic value is €150 or less sold to EU customers.
This facilitates compliance with VAT regulations and enhances the efficiency for the import of non-excise goods dispatched to the EU in consignments not exceeding EUR 150. EU-based companies typically register for IOSS in their country of establishment or choose a different Member State of identification in case they decide to get registered through an intermediary in another EU Member State.
For non-EU companies engaged in e-commerce with EU Member States, IOSS registration is a strategic move. By registering for IOSS, these companies can optimize the handling of VAT for goods sold to EU customers, shipped from their own country or territory or other non-EU locations. IOSS is one of the tools in the e-commerce seller toolbox to increase customer satisfaction by providing a faster and smoother purchasing and delivery experience. Non-EU companies have flexibility in choosing the EU member state of identification for IOSS.
In summary, while both EU and non-EU companies benefit from IOSS registration, the specifics of how it streamlines VAT processes depends on the origin of the company, which obligates or gives a possibility to manage the IOSS compliance through the intermediary.
Electing to partner with eVAT’s Premium Service Provider network for your IOSS compliance offers you::
- Registration: The IOSS number is available throughout the intermediary within hours following the successful completion of due diligence.
- Submission: timely and reliable submission and VAT payment every time
- Accuracy and simplicity: obtained data is consolidated for easier comprehension
If you want to explore the subject independently, visit eVAT’s blog post “Basics of IOSS”.