IOSS – Import One Stop Shop
The IOSS, The Import One Stop Shop is an electronic portal that aids businesses to pay their VAT more easily on imports. The aim of the scheme is to make the process smoother and quicker for the sale of products, which are outside the bounds of the EU. Unlike before, this allows the sellers and e-marketplaces to pay VAT to the authorities and charge it at the point of sale, instead of when it is delivered.
This permits the customers to know precisely how much they have to pay and not be blindsided by added tax charges. Unlike before, when VAT was exempted on imported goods of less than 22 Euros, now VAT is charged on all goods irrespective of their price. Additionally, the marketplaces are now falling in the category of suppliers as they are now collecting and paying the VAT for the seller.
The import and selling of goods can be a daunting process. The IOSS is a system that has several benefits, and it makes the process of the collection and payment of VAT much easier. Thus, it makes the process of selling imported goods to the EU simpler. Additionally, it provides benefits to both the suppliers and the consumers.
In only one return, done on a monthly basis you can now report and remit all VAT on imports.
Only One Registration
It gives you the option of registering with any one of 27 tax authorities of EU. Also, depending on where your customers are located, you can submit a monthly IOSS VAT return and it streams the payment to other specific tax authorities of EU. Now companies don’t have to register separately in each member state of the EU for paying VAT, instead they can use the online portal to file their VAT each month.
Enhanced Customer Experience
This adds swiftness to the customs process and this way customers get their orders faster. Making the entire process of e-shopping for your customers quicker, with no hidden custom charges. This improves the overall e-commerce shopping experience for your customers.
Quick Customs Clearance
Another benefit of IOSS is that while clearing customs you don’t need to pay import VAT if the value of goods doesn’t exceed the threshold. Along with this there’s a centralized customs clearance which expedites the process.
Registering For VAT
On the IOSS portal a company can register to whichever EU Member State it prefers. An EU based intermediary will be required if you are a non-EU business, to fulfill the company’s VAT responsibilities for you. An intermediary isn’t required if your company has an understanding with the European Union, about mutual aid in VAT recovery. Even after IOSS registering your routine obligations of VAT in your own country remain and need to be paid, so don’t forget that.
To further add to your ease, there are companies that have developed services, through which the entire process can be made even simpler. They help with the IOSS registration and also compile and submit your IOSS VAT returns on a monthly basis. If you are a business that is sending a large number of shipments into EU countries annually, then you should definitely look into acquiring the services of such a company. You must ensure that you have a good accounting system and it issues the right VAT rate according to the goods being sold and at the point of sale, the tax will be collected.