IOSS intermediary

Simplify the VAT compliance process for businesses.

What is an IOSS intermediary?

An IOSS (Import One-Stop Shop) intermediary, also known as an IOSS agent, intermediary, or fiscal representative, is a third-party service provider that assists businesses, including both EU and non-EU suppliers, in fulfilling their VAT obligations under the IOSS scheme.

Non-EU businesses are required to have an appointed intermediary or fiscal representative to handle their IOSS VAT obligations, including registering for the scheme, obtaining the IOSS VAT identification number, and submitting VAT returns.

The intermediary's responsibility includes registering the supplier in a member state, ensuring VAT is charged at the point of sale to the consumer, and that goods imported are subject to the local VAT rate of the member state.

The intermediary also assists with paying VAT, import VAT, and submitting the VAT return on behalf of the supplier. The IOSS scheme offers benefits such as simplified VAT payments, reduced customs delays, and an improved consumer experience by avoiding unexpected charges.

The intermediary enters into a cooperation deal or partnership with the supplier, providing services to facilitate compliance, including registering, reporting, and managing VAT obligations. VAT obligations begin from the date the IOSS VAT identification number is issued.

Suppliers can use their own website to charge VAT at the point of sale under the IOSS scheme, ensuring compliance for supplies made directly to EU consumers.

What is the IOSS

If your company is located outside the EU, registration for the IOSS (Import One-Stop Shop) scheme can only be done through the assistance of an IOSS intermediary.

How an IOSS intermediary can help with the IOSS?

Registration Assistance: IOSS intermediaries help suppliers with the registration process for the IOSS scheme. They gather the necessary information, prepare the required documentation, and submit the registration on behalf of the supplier to the relevant tax authorities, providing services that benefit both suppliers and consumers. The supplier's website can also be used to facilitate VAT collection for sales to EU consumers.

VAT Calculation and Collection: IOSS intermediaries assist suppliers in accurately calculating the VAT amount for each cross-border sale to EU consumers. They ensure the correct VAT is charged at the point of sale via the website, and that the goods are subject to the VAT rate of the destination member state. The intermediary also manages the responsibility of collecting VAT according to the customer's country VAT rate.

Reporting and Payment: Intermediaries handle the preparation and submission of the IOSS VAT return on behalf of suppliers. They compile the necessary transaction data, ensure accurate reporting, and calculate the VAT payable. The intermediary is responsible for paying VAT to the respective tax authorities on behalf of the supplier, including managing import VAT for cross-border supplies.

Record-Keeping: IOSS intermediaries assist suppliers in maintaining proper records of their IOSS transactions and VAT-related documentation. This includes retaining invoices, proof of delivery, and other relevant records required for compliance purposes, as well as records related to import VAT and supplies.

Compliance Support: IOSS intermediaries provide services that include ongoing cooperation deals to ensure compliance. They offer guidance and support to suppliers in navigating the IOSS rules and regulations, stay updated with changes in VAT requirements, answer queries, provide clarifications, and help resolve any issues that may arise during the VAT compliance process.

Obtaining an IOSS Number

For non-EU sellers and marketplace sellers looking to streamline VAT compliance when selling imported goods to consumers in EU countries, obtaining an IOSS number is essential.

The IOSS registration process allows non-EU companies to use the Import One Stop Shop (IOSS) scheme, making it easier to pay VAT on distance sales and fulfill VAT obligations across all EU countries through a single registration.

To access the IOSS scheme, non-EU sellers must appoint an EU intermediary. This intermediary acts as the responsible party for IOSS registration, handling VAT payments, and ensuring all tax obligations are met on behalf of the non-EU seller.

By leveraging the expertise of an EU intermediary, non-EU companies can efficiently manage VAT for their distance sales, avoid complications at customs, and provide a seamless experience for EU consumers.

The IOSS number issued through this process is used for all IOSS-related transactions, enabling sellers to collect VAT at the point of sale, declare VAT to the relevant tax authorities, and simplify the import process for goods sold to EU customers. This not only ensures compliance with EU VAT regulations but also enhances the competitiveness of non-EU sellers in the European market.

Step-by-step process for securing your IOSS number through an intermediary

Securing your IOSS number through an intermediary involves a straightforward process designed to help non-EU sellers meet their VAT obligations in the EU. Here’s how to get started:

Appoint an EU intermediary: Begin by selecting a taxable person established in an EU country to act as your intermediary. This EU intermediary will be responsible for managing your IOSS registration, submitting VAT returns, and making VAT payments on your behalf.
Gather required documents: Work with your intermediary to collect all necessary documentation, including business registration documents, tax identification numbers, and proof of establishment. Providing detailed information about your business and sales activities is crucial.
Register for IOSS: Your intermediary will submit your IOSS registration to the tax authorities in the EU country where they are established. This process includes providing all relevant business details and supporting documents.
Obtain an IOSS number: Once your registration is approved, the tax authorities will issue your IOSS number. This unique identifier will be used for all IOSS-related VAT payments and customs declarations.
Activate the IOSS account: The intermediary will activate your IOSS account, enabling you to start using the Import One Stop Shop for distance sales of imported goods to consumers in EU countries.

By following these steps, non-EU sellers can efficiently register for the IOSS scheme, ensuring compliance with EU VAT rules and simplifying the process of selling to customers across multiple EU countries.

Key documents and requirements for application

To successfully apply for an IOSS number through an intermediary, non-EU sellers must provide several key documents and meet specific requirements. These include:

Business registration documents: Official proof of your business registration, such as a certificate of incorporation or business license.
Tax identification number: A valid tax identification number for your business, required for tax and VAT purposes.
Proof of establishment: Documentation confirming your business’s establishment, such as a recent utility bill or lease agreement.
Power of attorney: A signed power of attorney authorizing the intermediary to act on your behalf for all IOSS-related matters.
Detailed business information: Comprehensive details about your business activities, including the types of goods sold, the countries where sales occur, and information about your customers.

Providing these documents ensures a smooth IOSS registration process, allowing non-EU sellers to collect VAT, pay VAT, and declare VAT on distance sales of imported goods to consumers in EU countries.

With an IOSS number, your business can efficiently meet VAT obligations, enhance compliance with European Union regulations, and expand your reach across the EU market.

Frequently asked questions

European VAT refund

France VAT

IOSS and OSS

VAT Registration

EORI number

VAT Returns

Our Services

The 13th Directive and the EU VAT Refund Directive (Directive 2008/9/EC) are both mechanisms that allow businesses to claim Value Added Tax (VAT) refunds in European Union (EU) member states. However, there are some key differences between these two directives. Here are the main distinctions:

Scope and Applicability:

13th Directive: The 13th Directive specifically applies to businesses located outside the EU that do not have a VAT registration within the EU. It is designed for non-EU businesses to claim VAT refunds on eligible expenses incurred in EU member states.
EU VAT Refund Directive: The EU VAT Refund Directive applies to businesses established within the EU, allowing them to claim VAT refunds on expenses incurred in other EU member states. It is applicable to VAT-registered businesses within the EU seeking cross-border VAT refunds.

Application Process:

13th Directive: Under the 13th Directive, non-EU businesses need to submit a VAT refund application to the tax authorities of the EU member state where the VAT was paid. The application is typically made using a specific form provided by the tax authority.
EU VAT Refund Directive: The EU VAT Refund Directive introduces a simplified and streamlined process for VAT refund claims within the EU. Businesses can apply for refunds electronically through their home country's tax authority, rather than submitting applications directly to each member state.

Under the 13th Directive, non-EU businesses can claim VAT refunds on directly related business expenses incurred in European Union (EU) member states. While the specific eligibility criteria may vary between countries, here are some examples of expenses that are commonly considered directly related to business activities:

Accommodation Expenses: VAT paid on hotel stays or rental accommodations for business purposes, such as attending conferences, trade shows, or client meetings, can typically be claimed under the 13th Directive.
Meal Expenses: VAT paid on meals or restaurant bills incurred during business-related activities, such as client meals, team meetings, or business travel, may be eligible for a VAT refund.
Transportation Costs: VAT paid on transportation expenses directly related to business activities, such as airfare, train tickets, taxi fares, or car rentals, can often be claimed under the 13th Directive.
Trade Show or Exhibition Expenses: VAT paid on expenses related to participating in trade shows, exhibitions, or conferences, including booth rentals, registration fees, promotional materials, and related services, may be eligible for VAT recovery.
Professional Services: VAT paid on professional services directly related to your business activities, such as legal fees, consulting fees, or marketing services, may be eligible for a VAT refund.
Business Entertainment: VAT paid on entertainment expenses incurred for bona fide business purposes, such as client entertainment events, team-building activities, or business-related social functions, might be eligible for VAT recovery.

The documentation requirements for claiming VAT refunds can vary between countries and depend on the specific rules and regulations of the tax authority where you are submitting your VAT refund application. However, here are some common types of documentation that are often required:

Valid VAT Invoices: You will typically need to provide original VAT invoices or receipts for the expenses on which you paid VAT. The invoices should include the necessary details, such as the supplier's name and address, your business's name and address, the invoice date, a unique invoice number, a description of the goods or services, the VAT rate applied, and the amount of VAT paid.
Proof of Payment: You may be required to provide evidence of payment for the expenses on which VAT was paid. This can include bank statements, credit card statements, or other forms of payment documentation that demonstrate the payment was made.
Import/Export Documentation: If you are claiming VAT refunds on import or export transactions, you may need to provide additional documentation such as customs declarations, shipping documents, import/export licenses, or proof of export.
Proof of Business Purpose: Some tax authorities may require you to provide evidence that the expenses for which you are claiming VAT refunds were incurred for business purposes. This can include supporting documents like travel itineraries, conference agendas, or contracts that demonstrate the business nature of the expenses.
VAT Refund Application Form: You will likely need to complete a VAT refund application form provided by the tax authority. The form will require you to provide information about your business, VAT registration details, the reporting period for which you are claiming the refund, and details of the eligible expenses.

Please note that the specific documentation requirements can vary significantly between countries. Some countries may have more stringent requirements, while others may have simplified procedures for VAT refund applications.

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IOSS intermediary

What is an IOSS intermediary?

How an IOSS intermediary can help with the IOSS?

Obtaining an IOSS Number

Step-by-step process for securing your IOSS number through an intermediary

Key documents and requirements for application

What are the differences between the 13th Directive and the EU VAT Refund Directive?

What VAT can be refunded under 13th Directive?

What documents are required for claiming the VAT refund?

Talk to one of our experts in order to expand the business in the most efficient way.

IOSS intermediary

What is an IOSS intermediary?

How an IOSS intermediary can help with the IOSS?

Obtaining an IOSS Number

Step-by-step process for securing your IOSS number through an intermediary

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Key documents and requirements for application

​

What are the differences between the 13th Directive and the EU VAT Refund Directive?

What VAT can be refunded under 13th Directive?

What documents are required for claiming the VAT refund?

Talk to one of our experts in order to expand the business in the most efficient way.