What is IOSS and who must register for it?
IOSS (Import One Stop Shop) is the EU VAT scheme for collecting and remitting VAT on imported B2C goods with a value not exceeding EUR 150. Introduced on 1 July 2021, IOSS allows sellers (or marketplace operators) to collect VAT at the point of sale in the customer's country and remit it via a single monthly IOSS VAT return. Sellers not registered for IOSS face VAT collection at customs for each individual parcel.
How does a non-EU seller register for IOSS?
IOSS registration for non-EU sellers: (1) Non-EU sellers must appoint an EU-established intermediary (tax representative) to register for IOSS on their behalf (except for sellers from countries with a mutual assistance agreement with the EU); (2) Register in one EU member state (registration state); (3) Submit a monthly IOSS VAT return to the registration state; (4) Declare VAT collected from customers in each EU member state; (5) Pay the total VAT to the registration state, which distributes to destination member states. The IOSS number must be included on customs declarations for IOSS shipments.
Frequently Asked Questions
- What happens to IOSS for marketplace transactions?
- From July 2021, EU marketplace platforms are deemed suppliers for VAT purposes when they facilitate B2C sales of imported goods below EUR 150 by third-party sellers. The marketplace collects and remits VAT via IOSS on behalf of sellers, and the seller is excluded from the supply chain for VAT purposes. Sellers on IOSS-registered marketplaces do not need their own IOSS registration for goods sold through the platform.
- Does IOSS apply to goods above EUR 150?
- No. IOSS only applies to imported goods with a customs value not exceeding EUR 150. Goods above EUR 150 are subject to normal customs procedures and import VAT. For higher-value goods, sellers must either register for VAT in each destination member state where they store goods or exceed thresholds, or use the standard customs import VAT collection mechanism.