IOSS Services
IOSS solutions for all customers established outside the EU
Tax Desk will handle your IOSS number registration, as well as prepare and submit your monthly IOSS return once you have obtained your IOSS number.
What is IOSS?
The Import One Stop Shop (IOSS) was introduced by the European Union (EU) on 1st July 2021 for the declaration and payment of VAT on distance sales of low value goods imported from non-EU countries or territories.
From 1 July 2021, the VAT exemption for the importation of goods into the EU with a shipment value not exceeding €22 was removed. VAT is now due on all commercial goods imported into the EU regardless of their value. Import duties for shipments with a value not exceeding €150 are exempted.
For importation of goods with a shipment value not exceeding €150, suppliers can elect to use IOSS to report and pay the VAT.
If IOSS is used, VAT is not paid at the time of importation of eligible goods into the EU. VAT is instead paid by the customer as part of the purchase price (at check-out) and subsequently reported and paid by the seller in their monthly IOSS return.
Who can use IOSS?
The IOSS can be used by suppliers selling goods which meet all of the following conditions:
- it is a business-to-consumer (B2C) sale;
- goods are dispatched from non-EU to customers in the EU;
- the shipment value is €150 or less; and
- the shipment does not contain goods which are subject to excise duties (typically alcohol or tobacco products).
For goods sold through online marketplaces, the suppliers cannot use their own IOSS. Marketplaces should have their own VAT arrangements in place.
Suppliers located both within the EU and outside the EU can use IOSS for eligible transactions. Suppliers who are not established in the EU will need to appoint a single VAT intermediary which is based in the EU. Only one VAT intermediary can be appointed by a supplier at any given time, irrespective of the mode of transport or carriers used for the transportation and import.
What are the benefits?
The use of IOSS is not mandatory
However, if IOSS is not used, import VAT is due upon importation of the goods into the EU. Your logistics/customs agent will pay the import VAT to the customs authorities, and then recover it from either the customer or you. Additional handling fees will then apply and the customer experience is often compromised. An additional VAT compliance burden may also arise if you sell goods under Delivered Duty Paid (DDP) terms.
Reduced compliance burden
The seller can use a single IOSS registration to report and pay the VAT due on all qualifying sales to all EU member states. If the seller is to sell goods under DDP terms and acts as the importer, they may need to register for VAT in multiple countries where the customers are based with added complexity and cost.
Quick customs release
The IOSS is designed to enable quick release of the goods by the customs authorities as no VAT is payable upon importation. This will result in a speedy delivery of the goods to the customer.
Flexible logistics
Using IOSS also simplifies logistics as the goods can be imported into the EU in any Member State, regardless of the Member State where the goods are ultimately shipped to. If IOSS is not used, goods can only be imported and customs cleared in the Member State of final destination, which limits your options and may incur additional costs.
Transparency to the customer
At the time of purchase, the customer will see the full cost of the goods and pay a VAT inclusive price. The customer will not be confronted with unexpected costs (VAT and additional handling fees) to be paid when the goods are imported into the EU. This improves the customer experience and reduces rejected products.
Once you have your own IOSS number, you should
Charge your customers the relevant VAT on all IOSS qualifying sales dispatched to the EU at point of sale;
Prepare the eligible goods to be shipped in consignments not exceeding EUR 150 in value;
While not compulsory we recommend you show the VAT paid by the customer in EUR (as at the date of payment acceptance) on the VAT or commercial invoice accompanying the goods for customs clearance;
Provide your IOSS number to your logistics provider, to avoid import VAT being charged upon importation. Your logistics provider will then provide this number to customs via the customs declaration. You should only use your IOSS number for imports of eligible goods sold on your own website. For goods sold via online marketplaces, you should follow the instructions provided by the marketplace;
Submit a monthly IOSS return to the Member State of identification for all the eligible supplies of goods sold to customers in the EU. The Tax Desk IOSS service will manage this for you including the preparation and submission of the monthly IOSS return;
Make a monthly payment to the Member State of identification of the VAT due as declared in the IOSS VAT return (this payment will need to be made via your VAT intermediary and Tax Desk will provide all relevant monthly payment instructions if you sign up for our IOSS compliance service); and
Keep records of all eligible IOSS sales for 10 years to cater for potential audits by EU tax authorities.
Service fees
The fee for annual IOSS compliance, including VAT intermediary services and the IOSS registration, is as follows:
Tier 1 Product
- Up to 500 packages in a 12 month period
Tier 2
- Up to 2,500 packages in a 12 month period
Tier 3
- Unlimited packages in a 12 month period