Frequently asked questions about IOSS

Frequently asked questions about IOSS

July 21, 2021

IOSS is a new way of handling VAT and other taxes due when importing goods into any EU country. Currently there is a lot of misinformation about this new system, so we have compiled the 7 most frequently asked questions about the one-stop shop:

1 Does the 150 Euro limit include taxes and freight?

Low-value goods that qualify for IOSS refer to goods whose net imported value does not exceed 150 euros at the time of shipment (except special products subject to excise tax).

2 Do I need to register several IOSS to operate several self-built sites?

If a company operates several self-built stations, only one IOSS number is required. If there are multiple companies, each company needs one IOSS number.

3 Do products sold in US dollars need to be converted to Euros?

If you use currencies other than euros to pay the purchase price of goods sold, you must always convert the following single , to determine if you can declare the full value of the goods under VAT IOSS.

4 Under what circumstances does 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 a single package
  • The buyers are business and non-personal consumers
  • Commodities have to pay excise tax (alcohol or tobacco products, etc.).
  • 5 Do I have to register for VAT before I can apply for IOSS?

    No, you can apply for IOSS without registering for VAT. VAT and IOSS are applicable to the declaration of different types of transactions.

    6 Is IOSS mandatory?

    No.

    In case your company is not registered for IOSS, the buyer must pay both VAT and customs clearance fees. This generates an extra cost to customers.

    Presumably, customers will stop buying from your ecommerce and prefer other ecommerce that can handle the taxes by themselves.

    7 Why use IOSS?

    The Integrated Import Service (IOSS) is established to simplify the process of customs clearance and declaration and payment of import VAT for goods (value under 150 EUR) imported into EU countries.

  • Customs clearance is fast
  • Logistics is simplified
  • The price is transparent
  • It reduces the burden of regulatory compliance.
  • The Import One Stop Shop saves you and your customers headaches. Leave the IOSS in Crossborderit's hands and ship without hassle.

    Sign up with Crossborderit and ship hassle-free.

    Damon Baca
    Co-Founder
    Crossborderit (CBIT)
    www.crossborderit.com/IOSS