Main facts about the Import One-Stop Shop (IOSS) scheme – GVC’s free guide to IOSS
What changed from July 1, 2021?
On 1 July 2021, all European Union Member States rolled out a new e-commerce VAT system which entails a One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) program. The aim of those programs is to promote both the cross-border online trade and trade across the EU by simplifying compliance obligations.
What is IOSS?
IOSS is a new scheme for reporting sales of goods imported from outside the EU into the EU and valued at less than 150 EUR. Under the IOSS, the importer can charge customers with VAT at the point of sale then declare and pay the VAT via a monthly IOSS return. IOSS allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU as it was previously the case (for products over 22 EUR). Read more…
Free IOSS Guide
Facts about _OSS
- IOSS came into effect 1 July 2021
- The 22 EUR VAT exemption is removed
- On all imported goods, VAT must be paid whether your business is enrolled to IOSS or not
- IOSS is NOT compulsory but recommended
- Reporting the IOSS VAT returns and payments is required on monthly basis.
IOSS applies to:
- Parcels shipped from a non-EU country to a consumer based in EU
- Parcels valued at equal to, or below 150 EUR. IOSS applies to the value of the whole parcel, not an individual item
- IOSS does not apply to goods subjected to excise duties such as alcohol or tobacco
Who can use IOSS?
You can qualify for IOSS if:
- You are an e-commerce seller based in EU and Norway
- You are not an EU-based e-commerce seller but your business has an appointed intermediary to act on your behalf in the country of registration in the EU.