VAT payments in online trade simplified thanks to IOSS

The current regulation of online cross-border trade has resulted in a significant loss of revenue for EU member states, so as of July 1, 2021, the European Union will no longer have the benefit of not paying customs duties or VAT on products from third countries. up to EUR 22. Imports of goods, with the exception of alcoholic products, perfumes and tobacco products, remain duty-free up to a limit of EUR 150, but a customs declaration must be submitted for each shipment entering the Union.


One possibility is that sellers outside the EU can register in the IOSS (Import One Stop Shop) system if they sell to more than one EU member state. Buyers then pay the seller VAT on the product when they buy. It is sufficient for a seller using IOSS to log in to a member state and pay the VAT collected from the buyer there, with the VAT collected being distributed among the customs authorities of the member states according to the destination of the goods.

Alternatively, shippers can use the “Special Arrangement” (SA) to simplify the payment of VAT by notifying the Office in advance. Special arrangements are only possible if the customs procedure is in the same Member State as the consignee. When applying the HS, the carrier collects VAT from the consignee at the time of delivery of the consignment, and then periodically declares and pays it at the tax office.


If neither the seller nor the carrier applies the facility, the fine customer must pay the duties and taxes at the time of importation.

While this may make things easier for the seller in the initial phase, it can result in decreased customer satisfaction and additional costs for abandoned sales and customer refusals.

Crossborderit (CBIT) can help. We have solutions that can help you show your customer’s target cost, collect the money and pay it on their behalf.


Transparency will help you build loyal international customers and ensure that most shipments are never stopped at the border.

Visit Crossborderit and learn more.


Damon Baca


Crossborderit (CBIT)

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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.