The Import One Stop Shop (IOSS) provides significant benefits at each stage of the import and sales process. When you drop ship, the IOSS makes your imports more efficient. With the IOSS, VAT registration and compliance is greatly simplified. And finally, the IOSS improves the e-commerce shopping experience for your customers.
Drop ship without delays
The IOSS applies to low value (valued at no more than €150) goods located outside of the EU at the time of sale that are sold to customers in the EU.
Traditionally, selling via this method – i.e. drop shipping overseas goods directly to customers – has been subject to potential delays at customs. Imported goods are subject to border controls and VAT and customs need to be accounted for. If the paperwork is out of order, customs could reject or delay the consignment.
Authorities say that low value goods imported using the IOSS – you will have to supply a valid IOSS number to the courier – will be subject to an expedited customs process. That’s good news for drop shippers, who rely on efficient delivery times to meet customer expectations.
Benefit from one IOSS registration for all your sales
The IOSS can also make VAT compliance much easier. When you sell to customers throughout the EU, you will, in many cases, incur an obligation to register and account for VAT in some or all of those countries.
With the IOSS, you can account for your VAT on applicable sales to customers across the EU with a single IOSS VAT return. That a single VAT registration, in a single country, for all your sales.
The IOSS means no more hidden costs
Let’s now consider the drop shipping experience from a customer’s perspective. The customers browses an appealing online store. They see an enticing new product, at an attractive price. They hit the buy button. Sold! That’s one happy customer – until their package arrives and the courier demands VAT and a handling fee before the parcel can be handed over. Now the customer is making a mental note never to shop from that website ever again.
By contrast, the IOSS mandates that VAT is accounted for at the point of sale. The items must be sold at a VAT-inclusive price (charging local VAT based on the customer’s location). There’s no further fees. The customer therefore has nothing more to do except wait for their package to arrive.
The combination of transparent pricing and more efficient customs clearance means that your customers are thus more likely to be satisfied with their purchases.
Your e-commerce VAT partner
Want to simplify your VAT processes, ensure you are always VAT compliant, and enhance your customers’ experience? Get in touch with Vatglobal for advice and assistance registering for the new IOSS. Our e-commerce VAT specialists are on hand to advise you on the optimal process for managing your VAT obligations. Get in touch to enjoy all the benefits of the IOSS.