Everything you need to know about Import One-Stop Shop (IOSS)

Everything you need to know about Import One-Stop Shop (IOSS)

What changed as of July 1, 2021?

Starting from July 1st, 2021, the new e-commerce VAT system will be implemented by all 27 European Union countries. The Import One-Stop Shop (IOSS) program is designed to assist sellers providing goods valued below 150 EUR to consumers in the EU with compliance to the new VAT regulations.

What is the IOSS for?

In the IOSS program, vendors are responsible for collecting, reporting, and remitting the value-added tax (VAT) on imported goods to the tax authorities. This means that consumers are not required to pay VAT when receiving their parcels.

IOSS ID Number

El conjunto de datos H7 incluye el número de identificación de IVA IOSS del vendedor o mercado responsable de vender los productos. Spainbox utiliza este número para garantizar que la importación de los bienes declarados está exenta de IVA. Las autoridades aduaneras pueden verificar si se cumplen las condiciones para la importación exenta de IVA y el uso de declaraciones aduaneras específicas.
The customs authorities electronically verify the IOSS VAT identification number provided in the customs declaration against the IOSS VAT identification number registry, which contains all IOSS VAT identification numbers assigned by EU countries. If the IOSS number is valid and the intrinsic value of the goods is below EUR 150, the customs authorities will not require payment of VAT for low-value goods imported under the IOSS.
Spainbox acts as the IOSS VAT agent and handles the VAT payment by submitting a monthly filing to the tax authorities. The customs authorities will create a monthly list of the total value of low-value imported products declared in the EU country of import for each IOSS VAT number during a given month. This list will be provided to tax authorities in the EU, who will compare this data with the VAT declared in the IOSS return by the same IOSS number. Finally, the tax authorities will distribute the collected VAT to the destination country authorities.

EU IOSS Intermediary: Role and Appointment Requirements for VAT

Starting on July 1st, 2021, the EU will introduce a new e-commerce VAT package that includes a pan-EU import VAT return called the Import One-Stop-Shop (IOSS) return. This new system allows sellers or marketplaces to report VAT charged on distance sale import consignments not exceeding €150 at the point of sale. Non-EU businesses must appoint an EU-resident Intermediary (a type of VAT agent) to use IOSS, who will share responsibility for return submissions and VAT payments. Member states where the Intermediary is registered will decide whether to impose guarantees on them, which is expected to be similar to VAT Fiscal Representative country rules.

Non-EU sellers or marketplaces that lack a mutual assistance agreement with the EU and choose to use IOSS will need to appoint an Intermediary who will share the responsibility of submitting returns and making VAT payments under the IOSS regime. The Intermediary should be registered with their country of establishment’s tax authorities to obtain a unique identification number for use with customs clearance processes. Additionally, the Intermediary must register the names of all sellers or marketplaces they represent with their home tax office and receive a IOSS VAT identification number for each seller in return.

IOSS Applicability

IOSS applies to parcels with a value of up to €150 shipped from non-EU countries to EU-based consumers, covering the entire parcel rather than individual items. However, it does not apply to goods subject to excise duties like alcohol or tobacco.

Advantages of IOSS

  • One VAT registration allows selling into all 27 EU countries.
    Sales in all 27 EU member states can be managed with a single VAT registration.
  • Transparent pricing at the checkout. IOSS ensures that the final customer has complete visibility of the cost at the point of sale and will not incur hidden costs later on when the goods pass through customs.

  • Faster delivery times:  IOSS-registered shipments will go through an accelerated customs process thanks to the standardized IOSS system.
  • Lower administrative costs: IOSS results in a reduction in paperwork and overheads since your appointed IOSS intermediary will handle your VAT returns and payments.

Who can use IOSS?

You can qualify for IOSS:

  • E-commerce sellers in the EU and Norway.
  • Non-EU e-commerce sellers with appointed intermediaries in the EU.

Monthly registration as an IOSS agent.

As an IOSS agent, Spainbox will handle monthly listings, VAT returns, and payments while performing regular checks to ensure compliance. They require transfer of sales VAT and may require a deposit depending on volume. Spainbox and the seller/marketplace must agree on a separate record-keeping obligation for 10 years to comply with audits. B Spainbox will fulfill IOSS legislation obligations and both parties remain liable for VAT. A separate power of attorney is needed to appoint customs declarant and IOSS agent.

Be prepared and avoid surprises.

Spainbox offers a customs clearance solution for EU imports that complies with new VAT and customs regulations, including VAT marketplace regulations, reduced customs data sets, and IOSS VAT reporting requirements. Appoint Spainbox as your IOSS agent for seamless service. Contact our IOSS experts to discuss your logistics needs.

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