How does the new IOSS system work?

The European Union operated with the low-value shipment allowance, which meant that import VAT was not taken into account for goods entering the European territory with a value of up to €22.

In July 2021 this rule will come to an end and every shipment entering the EU from a third country will be subject to import VAT.

For this reason the Import One Stop Shop (IOSS) is being introduced.

 

IOSS will be used for the declaration and payment of VAT on e-marketplace sales of low-value imported goods.

 

By registering with IOSS, online sellers or online marketplaces/platforms receive an IOSS VAT number. Postal operators and courier services use this IOSS VAT number to declare goods to customs authorities upon import. They can do this in any member state regardless of the destination of the goods. The customs authorities verify the validity of the VAT IOSS number and the package can then be delivered to the customer.

 

 

Ecommerce stores, online marketplaces and online sales platforms registered with IOSS receive IOSS VAT numbers to declare goods to customs at the time of import. Regardless of the destination of the goods, any member state may do so. The customs authorities verify the validity of the IOSS VAT number and then the package is delivered to the customer.

In case the shipment consists of more than one item, the total number of goods is taken into consideration as the value of the shipment. It is important to note that IOSS is not subject to excise duty (normally applied to alcohol or tobacco products).

Companies must be registered on the IOSS portal of any EU member state and if companies are not based in the EU, they must appoint a representative established in the EU to fulfill their VAT obligations under the IOSS.

 

 

Crossborderit (CBIT) has a simple solution. to help your company with all aspects of classification, calculation, and even collecting duties and paying them so there are no delays.

Which means your company will be in compliance with the new regulations and your customers will be happy to receive their goods without any problems.

Easily apply for IOSS representation through the Croosboderit (CBIT) website: www.crossborderit.com

 

Damon Baca

Co-Founder

Crossborderit (CBIT)

www.crossborderit.com/IOSS

 

Related Posts

What is the best option for your ecommerce on the new VAT rules?

What is the best option for your ecommerce on the new VAT rules?

From that date all low-value shipments (not exceeding 150euros) sent to the EU will be subject to VAT, this applies both for shipments from a third country and EU member countries. In addition to this, a declaration for all packages will have to be submitted to customs and taxes will have to be paid according to the VAT rates of the country.

What are the advantages of IOSS?

What are the advantages of IOSS?

Until now, there was no tax on shipments valued at less than 150 €. This will change after July 1, 2021, all shipments in the EU will have to pay VAT.

IOSS: the Import One Stop Shop for companies outside the EU

IOSS: the Import One Stop Shop for companies outside the EU

The IOSS scheme was designed for the sale of “low value” goods (not exceeding 150 EUROS) from outside the EU to EU buyers.

Normally, shipments from non-EU countries with a value of less than 22 EUROS are exempt from VAT.