From 1 July 2021, all goods imported into the European Union are subject to the VAT, regardless of their value. Import One Stop Shop (IOSS) is a special scheme available for non-EU sellers delivering low value goods. We provide comprehensive support in the correct registration for IOSS and further proceedings related to VAT Compliance. Our company serves as a registered IOSS intermediary
The new e-commerce VAT reality in the EU still poses more questions than it gives straight answers. In the second part of the discussion, Robert-Jan Brethouwer (Grant Thornton Netherlands) and Kateřina Ševčíková (KR Group) are giving practical insight into the Import One-Stop-Shop mechanism dedicated for non-EU based e-sellers. Our experts also look into the fiction of being deemed supplier, which marketplaces (Amazon, eBay, Alibaba) will need to deal with, under the new law.
What is IOSS?
Import One Stop Shop (IOSS) is a special scheme available for non-EU sellers delivering low value goods to the European Union.
I am selling goods that are imported to the European Union. When will IOSS apply?
IOSS will apply to distance selling of imported goods when the value of goods is lower than 150 EUR.
Is IOSS mandatory?
Currently, IOSS is optional for all non-EU entities. However, once registered, you should use the IOSS scheme for all applicable sales.
How does the VAT declaration look like?
IOSS provides a single VAT declaration for goods of intrinsic value lower than 150 EUR and allows these goods to be exempt from import VAT. The VAT is collected at the time of sale of goods to the customer.
What is an IOSS intermediary?
Applying for IOSS, non-EU companies are obliged to appoint an intermediary which is established in a member state. The intermediary will represent the company and will share responsibility for VAT administration for trade within the European Union.
Is the bank guarantee or deposit required?
An intermediary is jointly and severally liable for their client’s VAT obligations. The intermediary will be held liable in case of client’s misreporting of VAT and any action of the tax authorities will be taken against them. As a security of clients’ obligations arising from the VAT tax regulations, the client shall deliver a bank guarantee or a deposit.
The bank guarantee should also be issued by a reputable bank with its headquarters in the territory of the European Union.