The introduction of the Import One-Stop-Shop, the new EU import system, will impact all businesses who sell B2C goods to EU buyers. This is because all B2C online e-tailers and marketplaces will now have the opportunity to take advantage of a new, simplified EU VAT payment system, which promises faster delivery times and full VAT transparency for customers.
Please note, the IOSS system only concerns consignments of 150 EUR or below, with VAT being charged at the point of sale to the buyer. This means that the VAT must be displayed at the point of sale by the business or marketplace and collected, declared, and paid.
If a parcel is sent with IOSS, then an IOSS VAT reference number will need to be attached to the parcel in order for it to be identified as an EU IOSS package at EU customs. Also, FedEx, as the customs declarant, must be given the IOSS number which the package is being sent under in order to correctly declare that the VAT has been paid on the item (thus ensuring that it is fast-tracked through customs and can be dispatched immediately for deliver).
Businesses or marketplaces can apply for the One-Stop-Shop directly if they are based in the EU or for the IOSS intermediary should they wish. However, businesses based outside of the EU must apply for the scheme via an EU-based IOSS intermediary service, such as offered by Ship24. Applying for the scheme via an IOSS intermediary is the preferred option for many businesses. Registering for the scheme with Ship24 can enjoy a smoother transition into the scheme as well as ongoing support from an experienced international team, making capitalizing on the advantages of IOSS painless. For more information and to view our competative pricing, view our IOSS solutions page.
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Please note that the new EU VAT rules mean that online platforms, called electronic interfaces, who facilitate the sale of goods can also be responsible for collecting, declaring, and paying VAT. Therefore, if your business sells goods via an IOSS online marketplace, they should check whether the platform has an IOSS number already, which it can use. Some marketplaces, such as Amazon and eBay have declared an interest in having their own IOSS number which businesses who use their platform can use. Other marketplaces, such as Shopify, do not have an IOSS number and therefore businesses who use the marketplace will need to apply for their own OSS number (if based within the EU) or IOSS number if based outside of the EU via an IOSS fiscal intermediary.
If you are a marketplace or business that has registered for the IOSS, you must provide it FedEx, as FedEx is responsible for making the customs declaration.
Please note that businesses using multiple channels for sales, should keep records of all of their sales and provide the correct IOSS number for each sale to FedEx. All parcels sent with FedEx will need to include the IOSS VAT reference number on the package.
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There is not a specific FedEx IOSS number, as all IOSS numbers will be unique to the business or marketplace which registers for one. For shipping purposes and to ensure fast-track customs processing, an IOSS number must be supplied to FedEx, which is your customs declarant.
To get an IOSS number as a non-EU business and access the Import One-Stop-Shop benefits, you need to register with an IOSS intermediary. Ship24 offers full IOSS intermediary solutions, find out more by clicking the get an IOSS at the top of the webpage.
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Posting a parcel under the Import One-Stop-Shop will mean a number of changes as far as how it is processed by FedEx and upon arrival in its EU destination country. These are listed below:
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There is no specific IOSS service that must be used by FedEx businesses in order to send goods to the EU using its postal service. In fact, businesses can use any IOSS intermediary which they will declare and pay tax to (who will then pay it on to the relevant tax authority on their behalf), and still use FedEx for their deliveries. This has led to many wondering what the best fiscal intermediary options are available.
In response to the need for a professional IOSS fiscal intermediary, sector experts Ship24 have developed a streamlined IOSS service that is designed to not only offer rapid registration but streamlined IOSS import transition.
With unrivaled sector experience, Ship24 offers a low-cost VAT compliance solution designed which was made for cross-border online sellers. Let our international, best-in-class support team find the best IOSS solutions for your business and start taking advantage of the IOSS scheme as soon as possible.
The Ship24 IOSS solution package offers a number of essential solutions so your business can hit the ground running with IOSS. Please find them listed below:
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