Fully compatible with Shopify

Royal Mail IOSS solutions from Ship24

Get best-in-class support and ensure your business has full EU VAT compliance with sector experts Ship24.

Royal Mail IOSS solutions from Ship24

What does IOSS mean for Royal Mail users?

Import One-Stop-Shop is a new import system which has been introduced by the European Union. It accompanies the new EU VAT changes which saw an end to the 22 EUR or less tax exemption threshold, meaning all goods imported to the EU will now have value added tax charged on them.

The IOSS system has been introduced to accompany these changes, acting as an optional streamlined import service that promises faster delivery times, a more efficient EU VAT payment system, and more transparency for buyers and sellers. The scheme predominantly concerns B2C eCommerce sellers who sell low-value goods (worth 150 EUR or less).

What do IOSS Royal Mail e-tailers need to consider?

If you are an e-tailer or business that sells via a marketplace (electronic interface), then these changes could have a significant impact on how your business operates. Although the scheme is optional, it will depend on the nature of your business as to whether it will be beneficial to sign up for the IOSS scheme.

In this article, you can find information on how to register for an IOSS intermediary service and what obligations you will need to meet in order to be IOSS compliant. If you are an e-tailer, online business or marketplace and want full IOSS compliance then look no further than the shipping sector experts, Ship24. We offer full IOSS intermediary services, from blazing fast registration to best-in-class support, to enable you to deliver the best service for your EU customers. Find out more about our business IOSS solutions and how to get a Royal Mail IOSS number now.

How do I ensure IOSS Royal Mail compliance?

Once you have registered for IOSS with an IOSS fiscal intermediary provider, you will need to begin displaying and collecting VAT for your own records and declaring and paying VAT to your IOSS intermediary to meet IOSS compliance. Ship24 can help you with this process by providing detailed information on how to do so as well as ongoing support regarding VAT.

When you use the IOSS service, the VAT should be prepaid by the customer at the point of sale, which will include the delivery of the consignment by the shipping company. Therefore, the Royal Mail and its delivery partners will not charge import VAT or handling fees on any Royal Mail IOSS packages. This is one of the main advantages of using the IOSS system, as it provides the best possible post-purchase experience for customers while removing any potential delays in delivery on EU imports.

For further information about the new EU changes, please head to the European Commission website.

Do I have to send IOSS Royal Mail packages?

The IOSS scheme is optional and there is still a number of different ways in which to export goods to the EU / sell to EU buyers. These are listed below:

  • Selling through an IOSS registered marketplace: Some marketplaces will have their own IOSS number and therefore will be responsible for collecting and paying VAT on orders at the point of sale. An option for businesses who do not want to register for IOSS themselves is to opt to sell their goods (where applicable) on a platform that has its own IOSS registration. However, businesses should contact the marketplace before choosing this option, as some platforms require businesses to have their own individual IOSS numbers and as such, will not be responsible for meeting any IOSS obligations. If the marketplace that your business is registered with does have an IOSS number, you need to notify Royal Mail so that packages can be processed accordingly. Upon notification, the correct IOSS marketplace number will be attached your IOSS Royal Mail package.
  • DDU, DDP, and other delivery methods. You can still send goods to the EU in the same way as you did prior to the introduction of the Import One-Stop-Shop system. These delivery methods include Delivery Duty Paid (DDP), where the courier pays the VAT owed on behalf of the customer in order to dispatch but will need to be paid by the customer on delivery in the destination country. Please note that this option could mean delays in delivery due to the requirement of extra processing of the parcels at EU customs. Equally, especially on lower-value goods, the overall price paid by the customer could end up costing more due to the added manual handling fees charged by either the courier, EU customs authority or both.

However, many businesses are opting to register for the IOSS scheme and get an IOSS number because of the benefits it offers them and their customers, and with Ship24, it's never been so simple. Ship24 offers step-by-step sign up guidance to get your business its unique IOSS number in as little as three days. Our IOSS solutions package also includes full EU-wide IOSS representation and ongoing support with all VAT obligations.

Which goods does IOSS Royal Mail cover?

Goods which are included under the IOSS scheme include all those sold on online business websites and electronic interfaces. Distance sold goods are described as goods which are transported from outside of the EU at the time they are sold to the value of 150 EUR or less (this include if multiple items are in one package, as the total amount is worked out as the total value of the consignment).

Please note, IOSS packages are not subject to excise duties (unless specifically applied, such as to alcohol or tobacco).

How can I register for Royal Mail IOSS?

You can either register and file your own tax returns directly if you are based in the EU through One-Stop-Shop system, or companies both inside and outside the EU can opt for full intermediary services with Ship24. We ensure that businesses and marketplaces are fully VAT compliant as an official IOSS representative, with rapid registration and best-in-class support for all your IOSS needs. With our extensive shipping sector experience, international team, and competitive pricing, it's no wonder why e-tailers both large and small are turning to Ship24 to ensure they get complete IOSS solutions. To find out more, click 'get an IOSS number' at the top of the page or visit our dedicated IOSS solutions page on the tab at the top and let us take the stress out of IOSS.

By continuing, you consent to the use of cookies. More info