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What does it mean to have an (Import One Stop Shop) IOSS registration?

Businesses that decide to take advantage of the Import One Stop Shop (IOSS) must register for the IOSS through the portal of an EU member state. But what, precisely, does it mean to have an IOSS registration?

Businesses based outside of the EU can register through any EU member state. However, they have to appoint an intermediary to manage their VAT compliance under the IOSS.

The IOSS greatly simplifies VAT compliance. However, using the system also involved a number of requirements. In addition to registering and filing regular VAT returns, you will need to comply with a number of requirements.

IOSS registration and sales VAT 

Under the IOSS, VAT you must apply VAT at the moment the goods are sold. As a seller, you must ensure VAT is included in the sales price, showing how much VAT is to be paid by the customer. You must also provide a VAT invoice at the time of sale. 

As far as possible, the sales price should be listed in Euros.

Ensure goods are eligible for the IOSS

The IOSS only applies to goods worth less than €150 shipped to EU customers from outside the EU. As the €150 threshold applies to the total value of the consignment, you will need to ensure you do not ship goods to customers in consignments valued above €150.

Provide information for customs clearance

You will need to provide all the relevant information, includes the IOSS VAT ID, to the shipping company. This will help ensure the goods get through customs. 

Manage your VAT returns

You must submit your regular IOSS returns, and pay the relevant VAT, in the state in which you are registered for the IOSS. 

Record keeping

You have to keep records of all relevant sales for a ten year period. If you are an online marketplace, and are managing VAT on behalf of the underlying seller, then you must keep records of all sales facilitated. 

IOSS registration made easy

Vatglobal’s e-commerce VAT specialists will manage all the bureaucracy of the IOSS for you, including as an intermediary where required. Our expert team is on hand to provide strategic VAT guidance. Plus our technology-driven VAT compliance solution is the simplest way to ensure you are always 100% compliant, everywhere you have an obligation. 

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