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How to inform HMRC about changes to IOSS status

UK tax authorities issued new guidance on what to do if you change your Import One Stop Shop (IOSS) VAT registration. If you had previously informed HMRC that you are registered with the IOSS, you can use the online resource to update your details. You can also inform HMRC that you have deregistered from the IOSS. 

Why would HMRC be notified of IOSS registrations in the first place?

The IOSS simplifies VAT on drop shipping into the EU. As the IOSS is an EU system, the IOSS does not apply to sales in Britain.

However, under the terms of the Northern Ireland Protocol, it is possible to use the IOSS when importing goods for sale in Northern Ireland. You therefore need to notify HMRC when using the IOSS for sales in Northern Ireland in order to avoid paying VAT at the border. 

What is the benefit of the IOSS?

The IOSS applies to low value goods located outside of the EU at the time of sale, sold to customers in the EU. 

The IOSS offers numerous benefits. Firstly, you can account for VAT on applicable sales throughout the EU using a single electronic IOSS VAT submission. The IOSS also makes the sales process more appealing for your customers. Notably, the IOSS even promises to expedite customs clearance for your goods. 

Do you need to register for the IOSS in every country where you sell goods?

The IOSS was designed in part to simplify VAT registration and compliance. You only need to register for the IOSS in a single EU Member State. With one IOSS return you can account for VAT on sales throughout the EU.

Similarly, using the VAT One Stop Shop (OSS), you can account for VAT on intra-EU e-commerce sales with a single OSS return.  

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