Q: What is the IOSS?
The Import One Stop Shop (IOSS) is a scheme created by the European Commission to help businesses cope with the new regulations in vigor from July 2021. These new regulations impacted the way VAT is now collected and declared. Before July 2021, there was a Low-Value Item Exemption in place meaning that all goods with a value under €22 could be imported into the EU free of VAT. Since July 2021, this Low-Value Item Exemption has been abolished and sellers must collect VAT on all goods they sell to EU customers if they are part of the IOSS scheme.
How does the IOSS help me sell into the EU?
If you dispatch goods from outside the EU to customers in EU Member States, using the IOSS is highly recommended. All 27 EU members participate in the IOSS scheme and there are significant advantages for you and your clients:
- With the IOSS, you can just register in one of the 27 EU tax authorities, and submit only one monthly IOSS VAT return.
- With the IOSS, you collect the VAT from your customers when they buy goods valued at €150 or less. They won’t have to face any unexpected fees in customs after they already paid for their goods.
- With the IOSS, the goods will move through customs faster because the VAT is already collected and paid. You avoid delays in customs.
Q: Am I eligible for the IOSS?
The IOSS is not applicable to all goods and for all businesses. You need to meet the following criteria to use the IOSS scheme:
- You are a B2C seller
- Your goods are located outside the EU when they are sold
- The goods you are dispatching have a value up to €150
- The goods are not subject to excise duties (indirect taxes on specific products like alcohol or tobacco)
Q: How does IOSS registration work with Eurora?
Non-EU companies must appoint a VAT Intermediary registered in the EU to use the IOSS. This fiscal representative will register you to obtain your IOSS VAT identification number.
If you decide to use Eurora as your fiscal representative, here is how it works:
- You sign up to Eurora Portal and submit a registration form
- We issue an invoice for the IOSS registration
- We obtain your IOSS VAT number within 1 working day and share it with you.
- After that, you can use this IOSS VAT number anytime you send goods with a value up to €150 to EU customers
- Every Month you send us your EU sales data via an excel file or API integration and pay your VAT to us
- We submit the IOSS VAT return on your behalf and make sure you are tax compliant in every EU country you sell your goods