Believe your sales in the EU with IOSS registration
December 16, 2022
Last year, the EU introduced new trade rules. This applies mainly to all companies importing products into the EU. Forcing sellers to charge VAT on all products and report each package, since the tax exemption for low-value products (€150) has removed been.
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. If your company based is not in the EU, you will need to appoint an intermediary (such as CBIT) to be responsible for VAT collection and compliance for you.
What are the reasons why your company should consider being on the IOSS?
The main advantage of IOSS is that it facilitates VAT collection by allowing non-EU online marketplaces to register in one state and sell throughout the EU. In addition to collecting VAT on all their sales and reporting a monthly VAT return under IOSS.
The VAT liability (collection and reporting) for sales in EU countries will fall on the marketplace and not on the trader, provided the shipment has a value of less than (€150).
Say goodbye to surprise costs for your customers
Most EU customers face surprise costs and unexpected VAT payments from e-commerce companies. This will end thanks to IOSS, customers know exactly how much they are charged (VAT included), resulting in a successful cross-border purchase and a satisfied customer.
Streamlining customs clearance
IOSS facilitates the clearance of goods imported into the EU, as well as the clearance of goods destined for customers in all other EU member states.
Am I eligible for IOSS registration?
It is important to know that IOSS registration is not mandatory, but beneficial for businesses. Before registering for IOSS you should make sure that:
- You are a B2C seller
- Your products located are outside the EU when you sell them
- Your products have a value of less than €150.
- Your products are not subject to excise duties (like alcohol and tobacco).
If this is correct, you may be in the IOSS!
Don't wait any longer, designate Crossborderit (CBIT) as your IOSS intermediary and ship to the EU without problems.