What Is Import One Stop Shop (IOSS) And What Does It Do?
The Import One Stop Shop allows suppliers selling imported goods to the buyers in the European Union to declare, collect and pay VAT to the tax authorities instead of making the buyer pay the VAT at the moment the goods are being imported into the EU. The IOSS is formed to make it easier for the buyer who will only be charged VAT at the point of sales and thereafter no unforeseen charges are to be paid when the goods are delivered.
IOSS Benefits to the Suppliers and Consumers
It isn’t mandatory for the suppliers to use IOSS. However, suppliers and consumers can reap umpteen benefits with the use of IOSS.
- Register in one Member State for all supplies within the scope of the IOSS made across the EU.
- Report and remit all import VAT, within the scope of the IOSS, due across the EU in one monthly return.
- Charge VAT at the applicable rate at the point of sale to a consumer, with the result that goods will proceed through customs without the need for VAT to be paid at the point of importation.
How can Osservi be of your help?
From July 1 2021, new VAT rules for sales into the European Union have come into force. Osservi Payroll has registered for IOSS (Import One Stop Shop) to provide services being an EU registered English speaking entity to outsource VAT e-commerce obligations in distance sales of imported goods with similar tax systems and help UK based companies.
With the IOSS setting in, we provide value for businesses that sell goods across borders. You can really benefit from our expertise and knowledge no matter what the product is. Osservi will make sure to make international trade easy for e-commerce sellers and facilitate them by complying with customs regulations across the European Union. The goods that are covered under the IOSS are:
- Transported from outside of the European Union at the time the goods are sold
- Transported in consignments with a value not exceeding €150
- Not subject to excise duties (typically applied tobacco products or alcohol)
However, currently, the registration of IOSS is optional. You can continue to use your current systems and facilities where you treat your supply as an expert. For the import, you can either register with the destination country or your customer will be liable to pay the import VAT or any other handling charges.
