What does IOSS mean in real terms?
Published 17 June 2021

The new EU VAT and customs rules will completely change the way online sellers, e-commerce, retailers, marketplaces, etc. declare and pay VAT, collect tax and customs data, collect duties and tariffs.
What is the advantage of registering my business with the IOSS?
The IOSS simplifies and facilitates the collection, declaration and payment of VAT for companies shipping to customers in the EU. It also streamlines the process for the customer, who is only charged at the time of purchase, thus avoiding extra costs at the time of picking up the product. In case the company is not registered with the IOSS, the customer must pay the VAT.
Let's take an example:
Imagine that one of your customers in France asked you for a 50 euro necklace, the following two cases would occur:

First case:
  • As of July 1, 2021, shipments will be subject to a 21% VAT surcharge (€10.50) and a customs clearance fee of between €5 and €15.(VAT rates and customs duties vary according to the country of destination). Consequently, the customer will pay between €65.50 and €75.50.

Second case:
  • If you are an IOSS supplier, the same necklace will not be subject to the customs clearance fee.This means that you will only pay the VAT surcharge. This will save your customer between €5 and €15.
How Crossboderit can help you?
Crossborderit has a simple solution. We help with all aspects of sorting, calculation, and even collect the duties and pay them on entry so there are no delays. The customer knows what he is going to pay when he buys the product. Customs are paid accurately, allowing the package to be delivered just like a domestic shipment.
IOSS saves you and your customers headaches by offering standardized and simplified VAT solutions.
Contact the Crossboderit team to get the advice you need on the new IOSS and also be your IOSS Representative.

CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.

Sign up with
Crossborderit and ship hassle-free.
Damon Baca
Crossborderit (CBIT)