If the non-EU businesses do not apply for IOSS when they sell and send goods which worth less than 150EUR to EU based customers, the forwarder will collect VAT upon delivery from the customers.
Import One-Stop Shop (IOSS number) is a number for non-EU businesses that sell to EU customers when the imported goods are worth 150 euro or less and are dispatched from outside the EU.
The goods imported by an IOSS seller will only need to provide a valid IOSS number and hence the customs clearance time reduces. The sellers or online marketplaces can then charge VAT at the point of sale and remit it directly to the authorities.
Non-EU business has to appoint an authorised intermediary to do the IOSS registration and declare the VAT on their behalf. The companies who do not have the IOSS number will have to pay import VAT on all goods importing into the EU as EU removed the 22EUR import VAT exemption.
On the other hand, One Stop Shop (OSS number) will allow companies to register the VAT in only one of the EU member states from which they can report VAT for all of their EU sales made in multiple countries.
The EU companies can register for OSS in their country of establishment; the non-EU companies can register in the country from where the goods are dispatched through the Union scheme.
What can you benefit from IOSS/OSS registration?
- Do the business in all 27 EU member states with just one VAT registration.
- Enhance the customer experiences by providing transparent costs price.
Of course the new One Stop Shop is a lot more complicated than expected in real life and we understand that you might have a lot of question and concerns.
***As for the Fulfilment by Amazon (FBA) service or if you plan to stock in the EU member states, you still need to register a VAT number.
IOSS / OSS registration and returns process
Understand your business operation and needs
Have a free consultation call with us.
One of our VAT experts will review your business activities and understand your needs to identify the IOSS / OSS obligations.
Our team will ensure to have all the right data and documents. After checking all information, our local team will proceed to IOSS / OSS registration. The duration of registration process depends on the country.
Collect required data and documents
When you have the VAT number, you need to provide us all the declaration materials to file the VAT return on time.
Receive the VAT number and submit VAT returns