The United States Postal Services (USPS) is a leading American post and parcel delivery service in the US and offers international delivery options around the world. Many businesses in America use USPS to deliver goods to EU buyers and therefore will be wondering how the Import One-Stop-Shop (IOSS) system, the newly introduced for the EU on July 1, 2021, will affect both their business and the use of USPS to deliver their goods.
This guide covers everything you need to know about what IOSS is, what the introduction of IOSS means for distance sellers with customers in the EU, how to register for the IOSS, getting an IOSS number, and using USPS under the new scheme.
The Import One-Stop-Shop scheme will not affect how you send post with USPS as far as from the dispatch of your order from its original destination. However, IOSS USPS parcels will be processed quicker by customs at their EU destination country because they will be identified as being sent under the IOSS scheme and therefore authorities will know the tax has already been paid on the item.
In fact, the IOSS scheme has numerous advantages which are designed to speed up delivery times, improve customer post-purchase experiences and simplify EU VAT payments for everyone involved in the sale of goods in the EU. However, businesses who use USPS to deliver IOSS parcels should be aware that they will need to provide USPS with their IOSS number because they will be acting as their customs declarant. This will mean that packages can be identified as being sent under IOSS by customs in the EU.
Under the Import One-Stop-Shop system, prepayment of VAT at the point of sale will mean that hidden fees and long customs processing times will become a thing of the past, allowing for faster delivery to consumers within the EU which should in turn, boost confidence in purchasing from over-seas and boost trade.
When VAT is displayed at the point of sale, rather than calculated or owed at the point of delivery, means full transparency over the total fee for the buyer. Furthermore, for the seller, the one-stop system centralizes and simplifies VAT payments for EU-wide sales.
For the EU, it also ultimately means a reduction in VAT fraud on imported items and creates a more even market for businesses within the EU who are trying to compete with huge eCommerce marketplaces and companies in countries such as China, like Alibaba.
All-in-all, the scheme aims to benefit all stakeholders and that's why Ship24 has developed its very own professional fiscal intermediary service in order to ensure businesses make a smooth transition over to the IOSS system.
We've helped lots of businesses, large and small, already, in everything from registration to ongoing fiscal representation in line with EU obligations. We have delivered IOSS numbers to clients in as little as 3 days and our close relationship with our partners and direct contact with the relevant EU tax authorities means businesses who choose us are choosing wisely. Backed by a team of shipping experts, Ship24's IOSS intermediary services are just one of the many sector services we provide as an international company that is used by millions every month to track and ship parcels. Even though we have a truly international team, we deliver all our support in English meaning you won't have to deal with broken English or need a translator to meet IOSS compliance, but can rest assured our best-in-class support team will help get the right solutions for your business in straightforward business language.
Find out more about our competitive prices and services on our dedicated IOSS solutions page today.
IOSS is a separate system from logistics and courier companies and only concerns the payment of VAT to a single tax authority in the EU. Therefore, you cannot set up an IOSS USPS account. Businesses and marketplaces will need to sign up for the IOSS scheme themselves separately and can then use their IOSS number to send goods to the EU with USPS.
If you want answers about USPS IOSS operations directly, you can contact them on the following:
An IOSS number will not be added to a tracking number, at least in full, and will probably only be alluded to in a line of code to signify to customs in its EU destination country that it can be fast-tracked under the IOSS scheme as VAT has already been paid on the package.
The journey that an international IOSS parcel goes through is complicated as it will pass through many logistics companies and handlers on the route. Ship24 not only offers full IOSS intermediary services and EU compliance but also international tracking for casual users and professional tools for businesses. We specialize in locating and relaying the information on your parcel, 24 hours a day 7 days a week, so you're not only covering for tax but also on end-to-end delivery, all in one place.
Setting up an Import One-Stop-Shop number couldn't be easier. Firstly, any country that wants to register for the IOSS must do so via an IOSS intermediary (countries within the EU can apply for the One-Stop-Shop directly, or choose to use an IOSS intermediary, but non-EU businesses must use an IOSS intermediary).
Ship24 offers premium IOSS intermediary services and acts as a fiscal representative for multiple small and large small companies who sell goods in the EU already. To obtain your own IOSS number for your business, Ship24 can help you at each stage of the way, from registration to ongoing VAT declaration and payments in order to make sure you meet EU obligations.
Ship24, and our EU-based partners, are fully registered and certified to represent companies as an IOSS fiscal intermediary.
Although it is advisable because of the aforementioned benefits for businesses, businesses importing goods into the EU are not required to register for IOSS and can continue selling goods to EU consumers as they were before, such as via delivery duty paid and unpaid.
Also, some businesses who sell on marketplaces may be supplied an IOSS number by the marketplace. In this case, the marketplace will be responsible for collecting the VAT. Please note that you should contact the marketplace you sell on to confirm this before making sales and it is your responsibility to meet the IOSS obligations also (such as by displaying the added VAT rate at the point of sale, etc).
Even so, businesses are urged to take advantage of the scheme, which could potentially see the phasing out of other methods of sales within the bloc. Check Ship24's complete IOSS solutions today to find out just how simple and cheap transition to the new import system can be.