- Overview of the IOSS Scheme: Introduced on July 1, 2021, the Import One-Stop Shop (IOSS) simplifies the VAT payment process for e-commerce sales of goods imported into the EU valued at €150 or less, allowing online retailers to collect and remit VAT at the point of sale rather than at customs.
- Registration and Functionality: EU businesses can register directly in their member state, while non-EU businesses must appoint an EU intermediary for registration. The process involves displaying the total sale price with VAT at checkout, providing the IOSS number to the carrier, and filing a monthly VAT return to the tax authority where registered.
- Benefits and Eligibility: The IOSS makes it easier for sellers to operate across the EU by consolidating VAT reporting into a single monthly return, allowing VAT to be charged upfront without customs VAT on import. Eligibility requires that the sale is made through an e-commerce website to consumers, with the shipment being low-value and not subject to excise duties.
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