IOSS / VOEC

WHAT IS THE IMPORT ONE-STOP-SHOP (IOSS) SCHEME?

What does IOSS mean for buyers?
IOSS stands for "Import One-Stop Shop." It's a system introduced by the European Union (EU) to simplify the collection, declaration, and payment of value-added tax (VAT) on goods imported into the EU with a value of €150 or less. For buyers, IOSS means smoother and faster customs clearance processes, as VAT is paid at the point of sale rather than at the border. This reduces the risk of delays and additional fees upon delivery, making shopping from non-EU sellers more convenient and predictable. With IOSS, you can enjoy hassle-free international shopping and avoid unexpected charges, making it easier to support your favorite businesses abroad.

Why did the EU introduce IOSS?
The EU introduced the Import One-Stop Shop (IOSS) to simplify the collection, declaration, and payment of Value Added Tax (VAT) on cross-border e-commerce transactions. This initiative aimed to reduce administrative burdens for businesses selling goods to customers in the EU, especially small and medium-sized enterprises (SMEs). With IOSS, businesses can fulfill their VAT obligations for goods valued up to €150 at the point of sale, rather than upon importation, streamlining the process and making it more cost-effective. This benefits both sellers and buyers by making cross-border e-commerce smoother and more efficient.

Did the EU scrap the low value threshold on postal imports?
Yes, the EU did indeed eliminate the low value threshold on postal imports. This means that all goods imported into the EU, regardless of their value, are subject to VAT (Value Added Tax). Previously, items with a value below a certain threshold were exempt from VAT. Now, this exemption no longer applies, and VAT will be charged on all imports, no matter their value. This change aims to create a more level playing field for EU-based businesses and ensure fair competition

Does the euro 150 limit on IOSS include the cost of shipping?

The €150 limit on IOSS (Import One-Stop Shop) does not include the costs of shipping. This means that only the value of the goods themselves are considered when determining if the goods can be shipped using IOSS. However when calculating the amount of VAT to be paid, the shipping and / or other costs are included, here are some examples.

Can a vat registered business claim back tax paid under IOSS?
Yes, a VAT registered business can claim back tax paid under IOSS (Import One-Stop Shop) for goods imported into the EU. When a VAT registered business imports goods under IOSS and pays VAT at the point of sale, they can usually claim back this VAT as input tax on their VAT return. This means that the VAT paid on imports can be offset against the VAT collected on sales, resulting in a potential reduction of the overall VAT liability. This mechanism helps businesses avoid double taxation and promotes fair trade within the EU