Beginner's Guide: How to be on IOSS
December 16, 2022
Registering for IOSS involves more than just getting a VAT number. Not only do you need to know how to register, but you also need to know how it will affect your business and your customers. To help you do that, we've put together all the questions related to VAT numbers in the EU.
What is the Import One Stop Shop (IOSS)?
The European Union has created a new special regime called Import One Stop Shop (IOSS) for distance sales of low-value goods imported from third countries.
Online sellers, including online marketplaces/platforms, can register in an EU member state and this will apply to the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU.
Being on IOSS greatly simplifies the collection, declaration and payment of import VAT on behalf of customers. However, if a supplier is not registered with IOSS and does not notify its customers about possible fees, it can increase customer dissatisfaction and the risk that they will not buy from your online platform again.
Why use IOSS?
The Integrated Import Service (IOSS) is set up to simplify the process of customs clearance and import VAT declaration and payment.
- Customs clearance is fast.
- Logistics are simplified.
- Pricing is transparent.
- It reduces the burden of regulatory compliance.
How do I register with IOSS?
E-commerce sellers must register the company in one of the EU countries or, in case your company is not established in the EU, find an IOSS representative who is responsible for handling taxation and reporting on goods entering the EU.
Under what circumstances do IOSS not apply?
- The value of the product exceeds 150 Euros.
- The same buyer purchases several items, and the total value of these items exceeds 150 Euros and they are all shipped in one package.
- The buyers are commercial and not personal consumers.
- Commodities have to pay excise duties (alcohol or tobacco products, etc.).
Do you need help to be on the IOSS?
Do you feel like you won't be able to get through these processes without help? We understand that. That's why it makes sense to appoint an agent like Crossborderit to register your company and fit in the regime on your behalf.
For Shopify and WooCommerce merchants, Crossborderit CBIT is internalized with the apps along with the Shopify and WooCommerce tax and duty calculator, allowing merchants to calculate taxes at checkout, report shipments using their CBIT IOSS number, and enter EU countries under the new "one stop-shop" rules.
Do you find handling EU VAT issues tedious? Crossborderit can take care of your VAT registration and returns easily.