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IOSS customs solutions for businesses with Ship24

Make sure your business takes advantage of centralized VAT payments and fast-track customs clearance via the new EU Import One-Stop-Shop system, with Ship24.

IOSS customs solutions for businesses with Ship24

How will the IOSS customs changes affect my business?

The Import One-Stop-Shop (IOSS) is a new optional import system which came into effect on July 1, 2021. It accompanies the new EU VAT rules which mean the end of VAT exemptions for any goods imported under the value of 22 euros, which means that all goods sold to EU buyers will now be taxed.

Although optional, the IOSS scheme presents many benefits for businesses including better transparency on VAT, fast-track delivery of goods into the European Union, and a centralized VAT payment system for businesses in the EU - especially those who sell in multiple EU countries.

Find out how you can take advantage of the benefits of the Import One-Stop-Shop system on our IOSS solutions page and register with the shipping sector experts for rapid IOSS registration services and best-in-class support.

What are IOSS customs advantages?

Under the new Import One-Stop-Shop scheme, customs processing will be much quicker due to the fact that VAT will be paid at the point of sale by the customer. Therefore, all packages entering the EU, no matter in which member state they initially enter or where their final delivery point is, will be fast-tracked once identified as an IOSS parcel.

This is why it is advised that businesses register for an IOSS number in order to benefit both their own delivery efficiency and customers post-purchase experience.

How will IOSS customs work?

The Import One-Stop-Shop system will handle the collection, declaration, and payment of VAT for distance sellers who sell goods to buyers in the EU. This will not only make the process better for the buyer over the previous system, which often meant 'hidden fees' for buyers when they reached EU customs - which had to be paid in order for the goods to be delivered - but also improve customs processing times due to the fact items sent under IOSS do not need to undergo extensive processing to determine owed VAT. This, in turn, will allow for items to pass faster through customs meaning better delivery turnarounds on items sent under IOSS than other methods, ultimately improving the post-purchase experience for the customer.

It will also improve customs efficiency in the EU by both meanings that the EU can ensure that it is not the victim of VAT fraud (as has often been happening under the previous import tax exemption rule of 22 EUR). The new IOSS customs rules also promise to improve delivery times overall for all packages, due to the fact that packages that previously had to be individually assessed to determine how much VAT was owed will now no longer need to do so.

Will VAT be paid before customs under IOSS?

Businesses exporting to the EU should note that if they do not send their parcel under the new IOSS system, then the buyer will still have to pay VAT at customs, where an extra fee could be charged by either the courier or customs in the form of a clearance fee. This means that packages sent under the Import One-Stop-Shop scheme will be potentially cheaper for all stakeholders, another advantage of using IOSS.

If you want rapid IOSS customs clearance for your business, then register with the shipping sector experts, Ship24. Not only do we offer rapid IOSS registration within as little as three days, but we provide complete ongoing fiscal intermediary support to make sure your business meets all of its EU IOSS obligations. Our international team provides best-in-class support to ensure smooth IOSS transition at competitive prices. Find out more on our dedicated IOSS solutions page and find out why businesses and marketplaces are choosing Ship24 for their fiscal intermediary needs. Ship24 also offers API tracking and Webhook options as well as Ship from China logistics solutions.

What do businesses need to use the IOSS system?

There are a number of conditions you need to meet in order to register and use the Import One-Stop-Shop system. It is important for businesses to ensure they meet the EU obligations in order to benefit from the IOSS customs scheme. By using Ship24 as your IOSS intermediary, you can get access to special IOSS related support alongside EU-wide tax representation. As a fiscal representative, we make sure businesses registered with us a fully compliant with EU measures.

The obligations for online distance sellers and those who sell through electronic interfaces (such as online marketplace platforms) are slightly different. The measures required by the EU for online distance sellers under the IOSS scheme include:

  • IOSS VAT identification: Making sure businesses know how and where to provide their IOSS VAT number, which is required for customs clearance in the EU (at the border)
  • VAT display: Making sure businesses know how and where to display VAT to be paid by the EU based buyer
  • Correct VAT collection: Ensure that the VAT is paid on all low-value goods (valued at or less than 150 EUR) according to the rate set in the imports final destination country
  • Complete the correct VAT statements on invoices
  • VAT submission: Provide a monthly VAT return electronically to the OSS directly or the IOSS intermediary
  • VAT payment: Make a monthly payment of the VAT declared in return
  • 10 years record: Keep records of all eligible IOSS sales and/or sales facilitated for at least 10 years

For electronic interfaces, the requirements are:

  • Shared responsibility: Make sure that online marketplaces work together with the businesses on their platform to ensure the correct VAT and order information is shared. This includes any information relevant for customs clearance in the EU, including the IOSS VAT identification number.
  • Threshold management: Make sure that all goods shipped do not exceeding the 150 EUR threshold. This includes on multiple items.

Both ways of using the IOSS system must ensure that VAT is collected correctly at the point of sale, and that declaration and payment of VAT is made in a timely manner. Late payments of VAT to the authorities, or incorrect declarations (and thus, payments), can lead to audits and investigation by the relevant tax authorities in the EU.

How will an intermediary help with IOSS customs clearance?

As an IOSS fiscal intermediary, Ship24 will endeavor to notify any business registered with us if any errors occur in any of the documentation submitted by companies that we represent. If for any reason any abnormalities should arise with any documentation submitted, we will consult the business first and seek to correct it before submitting it to the EU. We pride ourselves on putting the businesses we represent first and our best-in-class support team is ready to help find a solution for any VAT related issues companies should face.

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