The IOSS procedure, The Import One Stop Shop under Global24’s magnifier

In order to reach customers all over the world, British businesses are active on various marketplaces and portals like Amazon or eBay. It’s a fantastic solution that allows those e-shops to sell their goods on international markets. However, selling your products to private customers located within EU comes with a lot of tax duties and formalities. On the 1st of July 2021, the VAT package was introduced, bringing solutions facilitating sales To EU from the third countries.  One of those solutions is the IOSS portal.

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Table of contents:

1. The IOSS – what does it mean?
2. Registration for IOSS
3. Import One Stop Shop and sending with Global24
4. The IOSS – summary

The IOSS – what does it mean?

IOSS – Import One-Stop Shop is the electronic portal for e-commerce businesses based outside the EU. It makes it easier for companies to account for VAT on imported goods.
The IOSS allows a taxable person to register in a single Member State to declare and pay EU import VAT. Supplier can report and remit all import VAT due under the IOSS across the EU in one monthly return.

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Keep in mind however that The IOSS can only apply to certain supplies:

  • It covers the sales of goods that are dispatched or transported from outside of the EU at the time they are sold and are sent,
  • In consignments with a value not exceeding a total of £135,
  • The goods must not be subject to excise duties.

We recommend article: Sending to the UK: EORI number – What is it?

Where the IOSS is used, no import VAT will be collected by Customs at the point of importation. VAT will be paid in the country of supplier. Consumers will therefore avoid additional costs.

Registration for IOSS

In order to register for the IOSS non-EU suppliers will need to appoint an EU established intermediary. After you have one, you can apply for number in any Member State. Application can be completed online on respective EU tax administration portals.

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IOSS and sending with Global 24

Are you wondering how The IOSS can help your business? The Import One Stop Shop portal can be very beneficial for e-commerce businesses including Global24 customers. This change is undoubtedly a step in a right direction. It considerably facilitates procedures and helps saving a lot of time and money if handled correctly. Up until this point, sellers were forced to keep track of completed sales in each EU country to avoid exceeding sales limits. It often required using additional services like tax consulting companies in each EU country. The IOSS removes this obstacles and allows for smoother sales process. In Global24 we believe in partnership – we’d be happy to help you in development of your e-commerce by handling your international logistics. Check out our offer and feel free to contact us in case you have any questions. – zapraszamy do kontaktu!

    The IOSS – summary

    It is important to know that the IOSS doesn’t apply to every tariff code. Be sure to check if your product can be sent within this system.
    Vat IOSS refers to the sales of the imported goods. It’s an electronic system provided by the tax administration of EU Member states. This portal allows accounting for and payment of VAT due generated by sales of goods to EU located customers, sent from The third country. The IOSS applies to businesses from the third countries who doesn’t have established headquarters in the EU. Shipments of goods with value nor exceeding £135 (150 EUR) sent from the third countries within the IOSS portal are relived from VAT during customs check in every EU country. It can happen only on condition of providing the IOSS number in customs declaration. If the seller won’t register for the IOSS, they will be required to complete standard customs check and VAT payment.

    Author:

    Wojciech Kotlicki, Head of Marketing

    Categories:

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