Why should I register for IOSS?

July 21, 2021

The Import One Stop Shop (IOSS) is established to simplify the process of customs clearance, declaration and payment of import VAT for goods with a value of less than 150 € imported into EU countries.

1. Fast customs clearance

IOSS aims to enable customs authorities to quickly clear goods without paying VAT on import, which promotes fast delivery of goods to customers.

2. Simplified Logistics

Using IOSS also simplifies logistics, regardless of which EU member state the goods are ultimately shipped to, goods can be imported into the EU through any member state. If IOSS is not used, the goods can only be imported and cleared at the final destination, which may incur additional costs.

3. Pricing is transparent

When a customer buys a product, he will see the total price of the product and pay the related taxes. When products imported to the EU, customers no longer have to pay (value added tax and additional fees) than expected, it can improve the customer experience in a sense, from case reduction and rejected return.

4. Reduce the compliance burden

Sellers can use a single IOSS number to declare and pay VAT on all sales covered by the IOSS system. If the seller wishes to sell products under the terms of DDP and act as an importer, it may be necessary to register a VAT number in several countries in the seller's region.

To register for IOSS and distribute smoothly to EU customers, an ecommerce seller must either register a taxable entity within one of the EU member states or find a tax representative (such as Crossborderit ) to handle the taxation and reporting of goods entering the EU.

Contact the Crossborderit team to get the advice you need on the new IOSS and also to be your IOSS representative.

Damon Baca
Crossborderit (CBIT)