Ensure your business or marketplace has a smooth transition to the new EU VAT system with our Import One-Stop-Shop solutions from shipping sector experts, Ship24.
Our IOSS service provides the complete solution to new EU VAT rules, including first time IOSS number registration, monthly VAT reporting and payment, other administrative procedures
Ship24’s IOSS solutions make EU VAT declaration easy:
Ship24 provides the ultimate IOSS registration and fiscal intermediary solutions, with best-in-class support and unrivalled shipping sector expertise
Complete IOSS solutions
Full IOSS advantages
Rapid IOSS integration
Competitive advantage for EU sales and imports
EU-wide tax representation
We offer the complete IOSS solution for businesses. With an average IOSS number delivery within as little as 3 days, we are the experts when it comes to making sure you're covered on everything from registration and representation to monthly administration. Our services include:
Ship24 offers IOSS fiscal intermediary services together with Clefino (a same group subsidiary focusing on EU VAT matters), for businesses who want to register and use the Import One-Stop-Shop system.
Clefino is an EU registered entity and will act as an official IOSS Intermediary in Lithuania. Registration with Clefino will mean you have IOSS representation for all 27 EU member States.
Registration is simple with Ship24. You will just need to be able to provide the following documents.
You will also be required to submit your business sales reports, including VAT, at the end of each week along with a transfer of the total VAT owed. The VAT will be collected by the intermediary on a week-by-week basis, and paid at the end of each month before the VAT deadline, as set by the EU. We can also arrange a monthly VAT collection if a security deposit is given. In particular situations, we will only be handling your VAT declaration if you have a deposit.
Please note, your IOSS number must not be shared with a third party and IOSS only applies only to orders valued at 150 euros or less. If any shipment values above 150 euros, you will need to keep using your existing customs clearance solution.
Ship24 provides unrivaled shipping sector expertise as well as a concrete EU VAT fiscal intermediary solution, giving you the best of both worlds. We offer
Proven expertise in cross-border shipping, servicing over 10,000 e-tailers and marketplaces worldwide and providing tracking information for more than 10 million shipments every month.
Solution provider to some of the largest cross-border e-commerce logistics companies and carriers.
Dedicated fiscal intermediary service solutions for cross-border e-commerce VAT declaration in the EU.
Deep understanding of cross-border e-merchant business needs, with up to date FAQ and website content constantly added to keep our users informed of the latest developments in the shipping world.
IOSS is an abbreviation for Import One-Stop-Shop, which is a new scheme developed by the European Union that will charge Value Added Tax (VAT) rules on imports into all 27 European Union countries effective from July 1, 2021. Essentially, it is a new EU VAT tax rule. To find out more specifically about the new tax changes, check out our dedicated IOSS EU VAT page.
The Import One-Stop-Shop (IOSS) itself is simply the system that will be used from July 1 onwards by businesses to declare and pay VAT to the EU on shipments valued at 150 euros or less. However, the new IOSS scheme represents a number of changes to VAT - or goods and services tax - which will be particularly important for business-to-consumer (B2C) sales and web-based marketplaces based outside of the EU.
The two biggest changes with the new VAT rules in the EU regarding the introduction of the IOSS scheme will be first, the removal of the 22 euro import tax exemption and secondly, making it the responsibility of the suppliers and electronic interfaces selling goods to EU buyers to collect, declare and pay owed VAT.
Whereas previously the buyer was responsible for paying any VAT owed when the goods were imported, now this must be prepaid. Furthermore, all goods - including imports valued under the previous 22-euro VAT threshold - will incur a VAT charge.
Otherwise, please find below a detailed breakdown of the IOSS portal, VAT tax changes, which businesses will be affected and why and other important information on the Import One-Stop-Shop system.
You can register directly for an IOSS number if you are established within the EU or have a subsidiary established within one or multiple EU member states. If you are not established in the EU, you will need to register for the IOSS scheme via an IOSS intermediary, which can be done with Ship24.
Whereas previously the buyer was responsible for paying any VAT owed when the goods were imported, now this must be prepaid by the buyer and collected by the non-EU seller who will have to pay it to the destination country's tax administrations (via an IOSS intermediary). Furthermore, all goods - including imports valued under the previous 22 EUR VAT threshold - will incur a VAT charge.
Registering for the new EU VAT IOSS number is advised by the bloc for businesses as it will be easier to pay the VAT through this channel than without an IOSS number.
For more in depth information on IOSS registration, view our dedicated IOSS registration page or get started at the top of this page with Ship24 and recieve and IOSS number in as little as 3 days.
Business-to-consumer VAT payments on eCommerce sales must be done through a monthly tax return in the EU country where the IOSS is registered, which will then pay the VAT due in all destination countries.. Once registered with the IOSS scheme, sellers will obtain an IOSS number which will be used to verify prepaid VAT (which will be paid at the point of sale) for shipping purposes.
The EU VAT rates vary from one country to another in the EU. Sellers must check the VAT rate of the destination country and apply the good rate to not face gaps between VAT due and VAT paid. Such gaps could entail tax audits. Our Intermediary can help on setting up the good VAT rates.
The IOSS number will be unique to each seller. IOSS intermediaries will be responsible for registering each business individually - providing them with a unique IOSS number. However, marketplaces who register for the IOSS scheme, such as Amazon, will be allocated one IOSS number which all of the merchants who use the marketplace must use when selling the product. This means it will be the responsibility of the marketplace to declare, collect and pay the VAT owed on those sales to the relevant EU tax authority where they are registered via the IOSS portal.
For online sellers and electronic interface sellers, they can register businesses on any EU countries IOSS portal, either directly if they are established in the EU or through an EU-established intermediary, to meet IOSS VAT obligations. This means that businesses will not need to register for VAT in each EU member state they sell goods in.
For more information on marketplaces offering IOSS and how it works, view our dedicated IOSS marketplace page.
There are a number of advantages to using an EU IOSS number, which are listed below:
An IOSS number will be a unique VAT code that will allow businesses to centralize all VAT-related transactions and payments, with the aim of making it easier for both merchants and customers regarding eCommerce transactions.
Once a business has an IOSS number, it will make the process easier for a buyer, who will only be charged VAT once, at the time of purchase. This will remove the worry and complications which arise from surprise VAT charges on goods imported to the EU for the buyer.
For those who do not have an IOSS number/are not IOSS registered, customs clearances fees and outstanding tax cause delays to the shipping process which negatively affects post-purchase customer experience as well as putting strain on logistics services. Import One-Stop-Shop numbers will make the customs import process much more seamless, as all VAT will be prepaid by the buyer at the point of sale, then collected, declared and paid by the seller to the Intermediary who will pay the VAT due in all destination countries on one tax administration interface.
An IOSS number, once obtained by a seller, will allow for a more transparent process for everyone involved in the sales of goods to EU buyers, while leveling the playing field on eCommerce with the bloc
The introduction of the Import One Stop Shop number, which will facilitate the new EU VAT rule on imports into the European Union, will undoubtedly have some transitional issues for businesses who are learning what the new EU VAT changes will mean for their businesses.
The Important One-Stop-Shop scheme will see two major changes to VAT rules within the European Union, namely the switch in responsibility to suppliers and online sellers (officially called "Electronic Interfaces" by the EU) to collect and pay VAT on e-commerce orders valued at 150 euros or less. The second is the scrapping of the 22 euro or less import tax exemption, meaning that all products imported into the EU will be taxed regardless of their value.
The first change noted will mean VAT prepaid by the buyer to the seller on EU imports will become normal practice, with the seller or marketplace being responsible for collecting/declaring and paying owed VAT through the IOSS either directly (if they are established in Europe) or via an IOSS intermediary.
An IOSS number will be registered within one of the 27 European Union member states, with VAT charges varying between each one. Businesses that are established in Europe are expected to register in the EU country that they are established within.
You can still track all registered parcels sent under the new EU VAT tax rules system with Ship24. Ship24 will continue to cover the thousands of couriers and logistics companies it already does, regardless of whether a parcel is sent with the Delivery Duty Unpaid (DDU) or under the new IOSS scheme. All you will need is your shipment tracking number to begin tracking your shipment from anywhere in the world to the EU, such as with DHL, UPS and FedEx, or any national postal service including La Poste or China Post.
You will still be able to track parcels to any EU country regardless of any EU VAT tax changes, with Ship24. If you need professional tracking for your business, feel free to check out our Tracking API and Webhook options, for comprehensive, universal shipment tracking to suit your needs.
Although the IOSS system will be introduced on July 1, it is still an optional service, and goods can still be imported without it, such as under a DDU agreement. However, all parcels will be subject to the new VAT rules which will accompany the introduction of the IOSS.
If the IOSS scheme is not used, the courier company must collect the VAT from a customer before delivery and pay it to the authorities. The Import One-Stop-Shop scheme is designed to make the VAT payment process as simple as possible, with ultimate transparency for the customers, who can avoid facing any surprise fees, and ensure maximum customs efficiency going forward.
Registration can vary between EU member states with applicants advised to allow at least four weeks in advance of their intent to export to the EU under the IOSS scheme. Registration with Ship24 offers the one of the quickest turnarounds for businesses, with the process designed to be as seamless as possible. We offer a complete step-by-step instructions showing businesses how to get their IOSS number as quickly as possible as part of our market-leading IOSS solutions offering.
There are various options currently for registering with an IOSS. If you are a seller on a marketplace which already has an IOSS, such as Amazon, you can use their service. You can also apply for One-Stop-Shop directly if you are a business established within the EU and, if not, you can register for the scheme through our IOSS intermediary service. Ship24 offers indepth shipping sector experience, second to none IOSS services and competative pricing.
These include paying for an annual service, which usually includes a one-off fee for initial registration and an annual fee going forward for services such as tax returns.
Other such services include 'pay as you go' solutions designed for smaller merchants with a lower volume of shipments. This is where a percentage is charged on each product shipped or the price is determined per the amount of shipments a company makes per month.
For consignments with a value of 150 euro or less, VAT is charged during a sale by e-tailers and online marketplaces and it is their responsibility to make sure the VAT is paid. The IOSS scheme aims to both avoid any unexpected fees for sellers upon import, give greater transparency and simplicity to the VAT payment process (only one registration in one country for all the VAT due in all destination countries) and make the delivery of products under 150 euros both faster and more efficient. It is the responsibility of the marketplace or e-tailer selling the product to display the VAT - additional to the cost of the product - at the point of sale.
As a result of the Import One-Stop-Shop scheme, all goods imported to the EU will be subject to VAT from July 1, without exemption. This means that all businesses involved in importing to the EU will be affected, especially e-tailers and online marketplaces outside of the EU. Businesses should be aware that the IOSS could have a number of implications for their business.
If businesses are selling goods through a marketplace with an IOSS, they must use the marketplace's IOSS number for sales and forward it to the customs declarant. To find out more information on rules concerning marketplaces registered with IOSS, check out our dedicated IOSS marketplace page.
Please note, any business using multiple marketplaces for sales should be careful to use the correct Import One-Stop-Shop number for different sales as well as a clear record of transactions made.
Liability of VAT payments will be the responsibility of the electronic interface, for example, Amazon, Etsy, eBay, Noths, and so on. The online marketplace responsible will be registered for the IOSS scheme and have their own IOSS number, which will be use by them to record sales, collect and pay VAT, and so on.
Businesses both within and outside of the EU will be subject to the new VAT rules. However, the difference is that businesses inside the EU will have the ability to sign up for the new One-Stop-Shop either directly with the tax authorities in the member state they are based or via an IOSS intermediary. Businesses who are not established within the EU must register and pay VAT through an IOSS intermediary (which is based in an EU company), which will pay VAT on their behalf.
If you are a non-EU based company, get complete IOSS intermediary solutions which Ship24 and receive an IOSS number within as little as 3 days, so your business can begin to see the benefits of the IOSS scheme.
From July 1, the Import One-Stop-Shop scheme will apply to all 27 EU member states. These are listed below:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
All of these countries have different IOSS registration systems, as those registered with the IOSS schemes in the respective countries will be managed by the local tax authorities of the state in question.
The IOSS covers both Online Sellers and Electronic Interfaces. For both, IOSS covers the sale of goods that are:
In order to meet the requirements of the IOSS, online sellers and electronic interfaces must:
An IOSS number should not be given to other businesses and should not be used by third parties. An IOSS number should only be used for the customs declaration.
If you discover that someone is using your Import One-Stop-Shop number, you must contact your Intermediary who will inform the tax office your IOSS is registered as soon as possible.
Import One-Stop-Shop intermediaries are set to register non-EU sellers on an IOSS platform in one country, and to declare and pay VAT monthly on this sole tax platform all the VAT due in all destination countries, on behalf of a non-EU seller with no EU subsidiary.
An IOSS intermediary is needed for Non-EU businesses and will aid such businesses with VAT declarations and payment.
All IOSS intermediaries are responsible for providing IOSS declarations and paying VAT for the businesses they represent, as well as being liable for correct VAT payments.
If the IOSS declaration made by an importer is incorrect, or the VAT for the declaration is unpaid, the IOSS intermediary directly and may hold her/him liable for payment.
Equally, IOSS intermediaries will be held responsible for multiple failures to provide declarations for importers or pay VAT, which can result in a two-year ban for IOSS intermediaries.
VAT rates for individual EU member states vary between the 27 countries. Businesses wanting to know more about these rates are encouraged to visit the EU taxation page directly, which is: