The European Union introduced the Import One-Stop Shop (IOSS) scheme on July 1, 2021, to simplify the VAT payment process for e-commerce sales of goods imported into the EU worth €150 or less. The scheme allows online retailers to charge, collect, and remit the VAT due at the point of sale, rather than having it collected by customs upon import. Suppliers selling goods valued at €150 or less to EU consumers can collect the VAT at the point of sale and declare it via a monthly IOSS VAT return filed in just one EU member state. EU-established businesses can register directly in their own member state, while non-EU businesses are required to appoint an EU intermediary to register for IOSS. The benefits of using IOSS include easier EU-wide selling, reporting and paying all import VAT in a single monthly IOSS return, charging the VAT due at the point of sale to the customer, and no import VAT collected by customs on IOSS shipments. The difference between OSS and IOSS lies in their application and scope, with OSS applying to cross-border supplies of services to non-taxable customers within the EU, and IOSS applying to distance sales of low-value goods imported from outside the EU to customers in the EU.
Source VATai
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