Import One Stop Shop FAQs
On 1st July, the €22 VAT threshold (De Minimis) exemption on goods imported to the EU was removed.
This means that ALL commercial goods imported to the EU will be subject to VAT – regardless of value.
So, if you ship to the EU, this means that:
- VAT needs to be charged based on the customer’s location
- VAT has to be declared for customs clearance
- VAT returns have to be submitted
The new Import One Stop Shop will help simplify the declaration and payment of EU VAT for distance sellers.
To help you understand how the IOSS could help you, we’ve joined up with SimplyVAT.com to answer your most commonly asked questions.
No, under the new EU VAT rules for eCommerce, thresholds for distance sellers were abolished on 1st Jul 2021.
For EU-based businesses, a new registration was introduced – OSS (One Stop Shop) – with a single EU-wide threshold set at EUR10,000.
There is no threshold for non-EU sellers – such as UK or USA based eCommerce businesses.
There is also no threshold set for businesses shipping goods from several member states.
This new threshold will cover any cross-border intra-EU distance sale of goods as well as any sales of digital services for private consumers.
As soon as the EUR10,000 limit is breached during a calendar year, any intra-EU sale of services and goods will need to be charged at the destination country rate within the EU (where your customers are located).
Businesses need to determine where their customers are based at the point of sale, and which VAT rates apply as soon as cross-border turnover exceeds the new EUR10,000 threshold.
For non-EU sellers holding stock in an EU country, the OSS registration will need to be in the EU member state where stock is being held.
Once registered for OSS, you have to report where OSS is applicable and you can’t pick and choose. For example, if you are an EU business that sells both goods and services, you can’t use OSS just for the goods and not the services, you need to use OSS for both.
You cannot reclaim purchases via OSS, therefore you will have to reclaim any purchase VAT via the EU VAT Reclaim mechanism if a VAT registration is not required or in the local VAT return if you’re required to register for VAT.
The IOSS is an electronic portal that helps businesses comply with EU VAT on distance sales of all B2C imported goods in the EU – for goods up to the value of €150.
IOSS provides you with a single VAT IOSS ID number that applies to all 27 EU countries. This will enable you to collect, declare and pay VAT directly to the EU Tax Authorities via a periodic tax return – for goods up to the value of €150.
|Goods Value*||Until June 30th 2021||As of July 1st||Until June 30th 2021||As of July 1st|
|€0 - €22||Exempted||Exempted||Exempted||Levied (with IOSS for B2C <€150. or upon import for b2c/b2b) €150.>|
|€22 - €150||Exempted||Exempted||Levied (Upon Import, Standard VAT Payment)||Levied (with IOSS for B2C <€150. or upon import for b2c/b2b) €150.>|
|Above €150||Levied (Upon Import)||Levied (Upon Import)||Levied (Upon Import, Standard VAT Payment)||Levied (Upon Import, Standard VAT Payment)|
- REGISTER – The IOSS provides a single EU VAT IOSS number valid for imports to all 27 EU member states
- COLLECT VAT FROM CUSTOMER – Collect VAT from the customer at point of sale, charged at the rate of the destination country
- IMPORT GOODS – Goods will be VAT exempt if a valid IOSS VAT ID number is declared at customs (GFS Selector can submit this electronically)
- COMPLY – Declare and pay import VAT to the EU tax authorities where you are registered via 1 IOSS VAT return and 1 monthly payment
If you don’t have a physical presence in the EU, you will need to appoint an EU-based intermediary to fulfil your VAT obligations under IOSS.
An intermediary is a taxable person that’s already established in the EU, and this person will fulfil your VAT obligations as set out by the IOSS, including the declaration and payment of VAT on the distance sales of imported goods.
If you are tax-registered in an EU country, you are free to appoint an intermediary but are not obliged to do so.
IOSS also does not cover goods that are subject to excise duties, such as tobacco or alcohol.
- Ease and simplicity: You’ll get a single EU IOSS VAT ID number that will cover VAT registration in all of the 27 EU member states
- Customer experience: Customers will have complete VAT cost transparency at the moment of purchase
- Improved cash flow: VAT payments can be made monthly directly to EU tax authorities
- XXX: ISO code corresponds to the Member State of identification
- YYYYYY: code assigned by the Member State of identification
- Z: check digit
- Display prices with VAT on your website according to the VAT rate of the destination country
- Collect VAT from the customer at the checkout
- Check on the intrinsic value of the imported goods ≤150 €
- Declare the VAT on the invoice, distinguishing the different VAT rates (for each destination country)
- Provide your customs declarant with the necessary information for customs clearance (including the IOSS VAT identification number)
- File a monthly VAT declaration before the end of month M+1
- Remit the VAT collected from the online sale before the end of month M+1
- Keep records of all eligible IOSS distance sales of imported goods for 10 years to cater for possible audits by EU tax authorities.
If you register for the IOSS you will need to make sure you:
- Provide all data required for customs clearance in the EU, including the IOSS VAT identification number, to the person declaring the goods at the EU border
- Present VAT amount to each EU customer prior to order confirmation
- Collect the correct amount of VAT according to the VAT rate in the customer’s shipping address
- Make sure that eligible goods are shipped in consignments not exceeding 150€
- Show the price paid by the buyer in EUR on your invoice
- Submit an electronic monthly VAT return via the IOSS portal of your chosen Member State where your intermediary is registered
- Make monthly VAT payments as declared in the VAT return of your chosen Member State where your intermediary is registered
- Keep records of all IOSS sales and/or sales facilitated over 10 years
This is the price of the goods as they are sold to the customer – excluding transport and insurance costs, and taxes, duties and any other fees, unless they are included in the price.
If any consignments exceed €150 they will not be eligible for IOSS BUT you can still give customers the same experience by shipping Delivered Duty Paid (DDP). This means any Duties & Taxes are paid by the carrier at Customs and invoiced back to you – so the customer experience will not be faced with any further charges when they receive their delivery.
GFS International eCommerce Services supports all delivery options to the EU and ROW, including Delivered Duty Paid (DDP), Delivered At Place (DAP) and Import One Stop Shop (IOSS). We can advise on the best shipping solutions for your products, customers and business – click here to find out more.
Yes, if you:
- Sell several goods to the same buyer, and these goods are shipped in a package amounting to more than 150€. These goods will be taxed at import in the EU Member State
- Made a sale to the EU via an online marketplace (or other Electronic Interface), in which case the marketplace is responsible for any VAT that is due
The Low Value Consignment Relief scheme was abolished by the EU (European Union) on 1st July 2021. Prior to these revisions in the regulations, goods valued under EUR22 imported into any other EU country could be imported without any VAT or duty having to be paid.
I normally deliver goods to the EU as DDP (Deliver Duty Paid) – Will I still need to when using the IOSS?
No – As no VAT will be charged on import to the EU, you do not need to use this delivery term. For shipments where your IOSS registration applies you can use the standard delivery term of DAP (Delivered At Place).
Online marketplaces are responsible for the collection of VAT (and payment to EU Authorities), and other IOSS-related obligations.
It is the duty of the marketplace to ensure that the information required for customs clearance in the EU, including the IOSS VAT identification number, reaches EU customs where the goods will be imported to.
We recommend contacting each marketplace you sell on to review and confirm how VAT will be handled and what you are required to do.
Returns under IOSS would be calculated on the following VAT return. As a merchant, you must give the VAT amount back to the customer. If it isn’t under IOSS, the customer would have to reclaim from the tax authorities.
I am a non-EU based business that sells via Amazon Pan-EU Fulfilment Service – what rules apply to me?
If you use Amazon’s Pan-EU Fulfilment Service, you will still need to have the local VAT registrations in the countries where you hold your stock. You will also need to file EC Sales Lists to account for any cross-border stock transfers.
If you sell your goods which are valued below EUR150 and imported in the EU via a marketplace eg. Amazon or eBay, the marketplaces are now responsible for the collection and payment of the VAT to the relevant tax authority.
If you are based outside the EU and sell goods of any value which are already in free circulation in the EU via a marketplace, the marketplace is now responsible for the collection and payment of the VAT to the relevant tax authority.
If you sell your goods via your own website, you should register for VAT under the IOSS (Import One Stop Shop) scheme.
If you sell via the Amazon Pan-EU Service and your goods are over EUR150 in value, you will need to register for OSS.
If you are based in the EU, you should apply for OSS in the country where you are established.
If you are based outside the EU, you can choose which country to register for OSS in, however, if you hold stock in any EU countries, you need to choose a country where you do hold stock.
If you hold stock in more than one EU country, you can choose which country where you hold stock to register.
No, it is not mandatory. However, it will help you simplify the collection and declaration of VAT, manage cash flow and potentially avoid unexpected customs charged and delays.
If you don’t register for the IOSS, VAT will either need to be collected from your customer when the goods arrive in the EU at customs, or you will need to pay additional carrier clearance fees – which may be slower and more costly.
Each EU Member State, when ready, will make an online portal available for you to register. You will need to consider which Member State you choose for this. Once you have made this decision, you will be asked to supply information.
This may include:
- Company name/trading name
- Website URL
- Contact information
- National tax reference number
- Bank details
We would always recommend you seek professional tax advice for further help and guidance.
You can find out more about the IOSS on the European Commission website here.
For help with shipping to the EU (with or without IOSS) – please feel free to contact us for further help and guidance.
We would always recommend you seek professional tax advice for further help and guidance.
You can find out more about the IOSS on the European Commission website: https://ec.europa.eu/taxation_customs/business/vat/ioss_en
If you have any questions about the shipping to the EU – please feel free to contact us for further help and guidance.