- HMRC launches Import One Stop Shop (IOSS) for UK VAT registered businesses selling goods under £135 to EU and Northern Ireland consumers
- IOSS allows businesses to account for local VAT in the EU without registering in each EU Member State
- Scheme applies to goods outside the EU with a value of £135 or less sent to EU or Northern Ireland consumers
- Businesses must cancel registration in an EU Member State if they want to register through HMRC
- IOSS cannot be used for excise goods, UK sales, or supplies to VAT registered businesses
- Online marketplaces are generally responsible for reporting and paying VAT on low value goods sold into the EU
- UK companies faced challenges setting up for IOSS through an EU Member State due to the need for a local representative
- Confusion still exists regarding VAT implications of post-Brexit UK-EU supply chains and when IOSS can be applied
- Businesses should be aware of VAT complexities when trading with the EU
Source: saffery.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
