IOSS

What is the IOSS?

The IOSS, or Import One-Stop Shop, is a system implemented by the European Union to simplify the declaration and payment of VAT on goods imported with a value below 150 euros. This one-stop shop allows businesses to register in a single member state to manage VAT on all their remote sales within the EU.

Why use the IOSS?

The IOSS offers several advantages for businesses and consumers:

• Administrative simplification: Businesses can declare and pay VAT through a single portal, thus reducing administrative complexity.
• Improved customer experience: Consumers pay VAT at the time of purchase, avoiding additional fees upon delivery.
• Increased compliance: By centralizing VAT management, businesses reduce the risk of non-compliance with EU tax regulations.

How to register for the IOSS?

To register for the IOSS, a business must:

1. Choose an intermediary: If not established in the EU, the business must appoint a tax intermediary to manage its IOSS obligations.
2. Register via the IOSS portal: Registration is done online in the chosen member state.
3. Obtain an IOSS number: This unique number must be used for all VAT declarations on remote sales within the EU.

Practical tips

• Check eligibility: Ensure your products meet the 150-euro threshold to benefit from the IOSS.
• Keep your records up to date: Maintain accurate records of all transactions to facilitate declarations.
• Stay informed: Tax rules can evolve, so it's crucial to keep up with regulatory updates.

By adopting the IOSS, businesses can not only simplify their VAT processes but also offer a better shopping experience to their European customers.