IOSS: extended helping hand for retailers selling to EU countries
December 16, 2022
The VAT OSS and IOSS systems focus on identifying/registering EU member states for online sales tax (VAT) compliance.
In particular, the online seller declares and pays all taxes to the selected member state, which then forwards refunds and recurring payments to the respective consuming country. The latter party is responsible for the control phase by applying its own laws.
IOSS is a new VAT payment model for the import of goods into the EU, which can only be used for shipments up to EUR 150. Therefore, the customer pays VAT when purchasing goods. Then, the e-shop passes the paid VAT to its representative, who is specifically registered for VAT purposes in only one EU member state.
Crossborderit's enhanced VAT compliance solutions provide global businesses with features that help navigate new laws for deemed suppliers OSS, IOSS and marketplace across the EU, as well as optimize overall VAT compliance through automation. Crossborderit helps businesses of all sizes become tax compliant.
The current Crossborderit application allows automatic reporting of IOSS shipments. Future versions will allow VAT collection at checkout.
Crossborderit easily integrates with Shopify and WooCommerce (soon Magento) based stores, allowing retailers to calculate taxes at checkout, report shipments using their IOSS CBIT number, and enter EU countries under the new "Import One Stop Shop" rules.