Import One Stop Shop (IOSS)

Import One Stop Shop (“IOSS”)

The new streamlined way to sell low value goods into Europe.

What is IOSS?

Import One Stop Shop (IOSS) is the new regime for consignments* of a value less than €150 being sent B2C into the EU from 1^st July 2021.

This replaces Low Value Consignment relief across the EU and makes VAT apply to all such B2C movements under a simplified regime whereby;

• No VAT or duty is due on import
• VAT is due only on sale according to the nature of the goods (at standard or reduced rates)
• Merchants appoint an IOSS Intermediary to represent them before the tax authorities, submit IOSS Returns and process VAT Payments
• Merchants obtain their own unique IOSS number (which is linked to their chosen Intermediary)
• Merchants can trade freely across all EU member states with a single IOSS registration and a single monthly IOSS return

IOSS is not mandatory but is designed to simplify selling to Europe and make things as efficient as possible. If you do not register for IOSS you can either:

• Have your customers pay the VAT due themselves when they take delivery of your item(s). This often comes with additional courier costs for the seller and significantly impacts client experience and repeat business.
• Register for VAT locally in Europe and obtain a VAT number in each country you sell into, paying duty and VAT on import and charging VAT to the customer subject to the normal charges. This approach creates significantly increased cost, compliance and reporting responsibilities across multiple countries.

The EU hopes IOSS is an attractive alternative to the above options and will streamline trade with the bloc. With your IOSS registration you can access the whole of the  EU and you only need to submit one VAT return together with a single VAT payment each month. Your IOSS return and associated payment must be submitted to and processed by your chosen IOSS Intermediary.