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Import One Stop Shop FAQs

ecommerce delivery to EU

From 1st July, the €22 VAT threshold (De Minimis) exemption on goods imported to the EU is being 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 One Stop Shop will help simplify the declaration and payment of EU VAT for distance sellers.

VAT EU ecommerce delivery

The IOSS is an electronic portal that will help you comply with EU VAT on distance sales of all B2C imported goods in the EU – for goods up to the value of €150.

The IOSS will provide 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.

 DUTIESVAT
Goods Value*Until June 30th 2021As of July 1stUntil June 30th 2021As of July 1st
€0 - €22 Exempted Exempted Exempted Levied (with IOSS for B2C <€150. or Upon Import for B2C/B2B)
€22 - €150 Exempted Exempted Levied (Upon Import, Standard VAT Payment) Levied (with IOSS for B2C <€150. or Upon Import for B2C/B2B)
Above €150 Levied (Upon Import) Levied (Upon Import) Levied (Upon Import, Standard VAT Payment) Levied (Upon Import, Standard VAT Payment)
  1. REGISTER – The IOSS will provide a single EU VAT IOSS number valid for imports to all 27 EU member states
  2. COLLECT VAT FROM CUSTOMER – Collect VAT from the customer at point of sale, charged at the rate of the destination country
  3. IMPORT GOODS – Goods will be VAT exempt if a valid IOSS VAT ID number is declared at customs (GFS Selector can submit this electronically)
  4. 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.

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

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 will be 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.

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
  • Address
  • 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: 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.

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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.

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