Crossborderit will execute your IOSS entries for you
July 21, 2021
On July 1, 2021, the European Union's changes to the way VAT is handled on online sales platforms or "Marketplace" came into force.
The idea of these new changes is to ensure equivalent conditions of competition between operators inside and outside the European Union, as well as to ensure the collection of VAT in the territory of consumption and to simplify the formal obligations of the operators involved by reducing formalities.
The new changes have significantly affected distance sales of goods between EU member states and final consumers by online sellers or platforms.
What is the role of IOSS with all these changes?
To facilitate tax compliance the EU has established the Import One Stop Shop (IOSS) system. This system avoids the need for postal operators or the addressees themselves to settle the import VAT. To this end, a new technical import exemption is introduced provided that these low-value distance sales (150euros) are declared through this new system.
Consumers know in advance what they have to pay if the seller is registered under IOSS, avoiding taxes on receipt.
We know that the use of IOSS is not mandatory. However, if IOSS is not used, the customer has to pay VAT plus customs clearance at the time of picking up the product (which can be more expensive).
Trust and transparency is important in online commerce
Don't let your customers in the EU lose the confidence to buy from your ecommerce. CBIT can help you execute your IOSS entries and compliance with the new regulations without managing a complicated pricing structure and evasive integrations.
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