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Notify HMRC when using the IOSS in Northern Ireland

If you use the EU’s new Import One Stop Shop (IOSS) to sell goods in Northern Ireland, you should notify UK authorities to ensure you don’t pay import VAT at the border. That’s according to guidance issued by HMRC. 

What is the IOSS?

The IOSS simplifies the collection and declaration of VAT for drop shippers. The IOSS mechanism applies to goods outside of the EU at the time of sale, valued at no more €150.

Using the IOSS, e-commerce sellers can account for the VAT on all applicable sales with a single IOSS VAT return.

You can find useful resources and information about the IOSS here.

What’s different about Northern Ireland and the IOSS?

The IOSS is part of a suite of new rules introduced by the EU to modernise e-commerce VAT. As the UK is no longer part of the EU, the EU’s e-commerce VAT package does not apply to the UK.

However, in terms of the Northern Ireland Protocol, it stands to reason that the new VAT rules apply to businesses operating in, or selling to, Northern Ireland. At the same time, Northern Ireland VAT continues to be administered by HMRC. And UK authorities had already warned that they expected registration for the One Stop Shop (like the IOSS, part of the new e-commerce VAT package) to be delayed.

HMRC’s guidance thus helps clarify that sellers will be able to use the IOSS to drop ship goods to customers in Northern Ireland. Online sellers must ensure they comply with the requirement to notify HMRC. Retailers should seek expert VAT assistance if they have any questions about compliance. Failure to adhere to either the EU or HMRC guidelines could see you pay excessive VAT. You could even be subject to penalties. 

Your complete IOSS solution

The IOSS provides many great benefits to drop shippers. Using the IOSS improves the customer experience. At the same time, the IOSS makes accounting for VAT much simpler. 

Vatglobal makes using the IOSS easy. We provide a single point of contact to manage your VAT compliance, everywhere you have an obligation. Get the assistance, expertise and technology you need to effortlessly take advantage of the best VAT compliance strategies for your company.

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