IOSS Registration
IOSS stands for Import One Stop Shop, which is a new VAT (value-added tax) scheme that was introduced in the European Union (EU) in July 2021. The IOSS is designed to simplify the collection and payment of VAT on cross-border sales of low-value goods, which are goods with a value of up to €150.
Under the IOSS, businesses that sell low-value goods to customers in the EU can register for VAT in a single EU member state and then collect and pay VAT on their sales to customers in other EU member states through a single online portal. This simplifies the VAT compliance process for businesses, as they no longer need to register for VAT in each individual member state where they have customers.
The IOSS is available to businesses that are established either within or outside of the EU, and it applies to a wide range of low-value goods, including goods sold through online marketplaces. However, there are certain exceptions, such as goods subject to excise duties or goods that are not intended for private consumers.
One of the key benefits of the IOSS is that it allows businesses to collect and pay VAT on their low-value goods sales in a timely and efficient manner, while also ensuring that VAT is collected on these sales in a fair and consistent way across the EU. This helps to level the playing field for businesses that are based in the EU and to improve the VAT compliance process for businesses that sell low-value goods to customers in the EU.
OSS Registration
The One Stop Shop (OSS) is a simplified VAT (value-added tax) scheme for businesses that sell goods or services to customers in multiple member states of the European Union (EU). The OSS allows businesses to report and pay VAT on their cross-border sales through a single online portal, rather than having to register for VAT in each individual member state where they have customers.
Under the OSS, businesses can register for VAT in a single EU member state, and then report and pay VAT on their cross-border sales to customers in other member states through the same portal. This makes it easier and more cost-effective for businesses to comply with their VAT obligations in multiple member states.
There are two types of One Stop Shop schemes available under the EU VAT rules:
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The Union OSS: This scheme is for businesses that are established in the EU and sell goods or services to customers in other EU member states. It allows businesses to report and pay VAT on their cross-border sales of goods or services to customers in other member states through a single VAT return.
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The Non-Union OSS: This scheme is for businesses that are established outside of the EU and sell goods to customers in the EU. It allows businesses to report and pay VAT on their cross-border sales of goods to customers in the EU through a single VAT return.
The One Stop Shop is designed to simplify VAT compliance for businesses operating cross-border within the EU, while also making it easier for tax authorities to collect VAT owed on cross-border sales. However, it is important for businesses to understand the specific rules and requirements of the scheme, and to ensure they comply with all relevant VAT regulations in the member states where they are doing business.
What can you benefit from IOSS/OSS registration?
There are several benefits to having an OSS (One Stop Shop) or IOSS (Import One Stop Shop) registration for businesses that sell goods or services to customers in multiple member states of the European Union (EU). Here are some of the key benefits:
1. Simplified VAT compliance: Businesses that have an OSS or IOSS registration can report and pay VAT on their cross-border sales through a single online portal, rather than having to register for VAT in each individual member state where they have customers. This simplifies the VAT compliance process and reduces the administrative burden for businesses..
2. Cost savings: With an OSS or IOSS registration, businesses can save money on VAT compliance costs, such as the fees associated with registering for VAT in multiple member states and the costs of maintaining separate VAT records for each member state.
3.Improved cash flow: Businesses that have an OSS or IOSS registration can benefit from faster VAT refunds and reduced VAT recovery time, which can improve cash flow and liquidity.
4.Competitive advantage: Having an OSS or IOSS registration can give businesses a competitive advantage by making it easier and more cost-effective for them to sell goods or services to customers in multiple member states of the EU.
5.Greater compliance with VAT rules: By registering for OSS or IOSS, businesses can ensure that they comply with the VAT rules in each member state where they have customers, which can help them avoid penalties and other legal consequences.
Overall, having an OSS or IOSS registration can provide businesses with several important benefits, including simplified VAT compliance, cost savings, improved cash flow, and greater compliance with VAT rules.
IOSS and 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