IOSS Intermediary UK

An IOSS intermediary acts as a fiscal representative for UK businesses selling goods to EU customers. Since the UK is no longer part of the EU, UK businesses must use an EU-based intermediary to handle VAT registration, declarations, and payments for cross-border sales under IOSS.

The IOSS intermediary helps UK businesses comply with EU VAT rules by managing VAT collection, reporting, and payments for goods valued at €150 or less. This simplifies cross-border VAT management and speeds up customs clearance by pre-paying VAT at checkout, reducing hidden charges for customers.

No, UK businesses cannot register for IOSS directly due to Brexit. Since IOSS registration must be done through an EU-based intermediary, UK businesses must rely on an intermediary to handle VAT registration and compliance with EU tax regulations.

To register for IOSS, UK businesses need to provide their details to the intermediary, who will submit the application to the EU tax authorities. Once approved, the business receives an IOSS number, which enables them to collect VAT at checkout and submit VAT declarations on time.

The seller is responsible for charging the correct VAT rate based on the customer's location in the EU. This VAT is collected at checkout and then declared by the IOSS intermediary, who submits the payments to the appropriate EU tax authority on the seller's behalf.

Once registration is completed, the EU tax authority will issue the IOSS number and send it directly to the business. This IOSS number must be used when shipping goods, allowing customs to verify that VAT has already been paid and fast-track the release of the shipment.

While the intermediary handles VAT declarations and payments, UK businesses are responsible for collecting VAT from customers and ensuring the correct amount is charged at checkout. The intermediary will assist in verifying the VAT data before submitting it to EU tax authorities.