To ensure a smooth transition to the new VAT system, the EU has created the Import One-Stop Shop (IOSS). The IOSS is the electronic portal businesses can use from the 1st of July 2021 to comply with their VAT ecommerce obligations on importing commercial goods from outside the EU.
From April 1st IOSS registrations are open and businesses can register on the IOSS portal of any EU member state. All EU businesses can register for the IOSS. For businesses outside the EU an IOSS intermediary will need to be appointed in order to register those businesses under IOSS. This intermediary can only be a company established in the EU.
The IOSS registration is valid for all distance sales of imported goods to buyers in the EU. You can start using the IOSS only for the goods sold as from 1 July 2021.
This intermediary is acting on behalf of its clients in order to perform all VAT payments to the tax authorities. As such, the IOSS intermediary is jointly liable to the EU tax authorities regarding their clients VAT obligations. IOSS does not require the intermediary to take care of the suppliers customs declarations.
This IOSS registration is valid for all distance sales of imported goods of value under 150€ to buyers in the EU. IOSS will be available for all goods sold starting July 1st 2021 and after.