IOSS is Import One-Stop-Shop. The new simplified scheme for sellers who imports goods to the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT.
Import One-Stop-Shop & One-stop-shop
From the 1st of July 2021, the new types of registration in the European Union are available. All the simplified schemes are optional. The VAT obligations are turning easier for online merchants and electronic interfaces throughout the EU
There are three unified types of registration in the EU:
All three schemes are optional – there is no obligation to register, but you may choose to do it. The alternative may be to get a VAT number in each country.
Union OSS number –
This number can be used by both EU and non-EU sellers to be able to declare sales of goods to customers in the EU. The main difference from the IOSS number is that goods at the moment of sale are in the territory of the EU. European businesses can get an OSS number in the tax office where the head office is established.
Non-EU sellers can choose a country for OSS registration from countries where they store goods or have a supplier. Non-EU sellers can declare intra-community sales of goods in the union OSS VAT return. But EU sellers can declare in OSS return not only sales of goods but sales of services as well. If you have questions about what registration to choose you can ask our tax expert and they will help you to choose.
The Non-Union OSS number –
Used to be MOSS – this number is for non-EU sellers who sell digital services to private individuals in Europe. This registration is also for non-EU marketplaces facilitating digital services to European customers. Sometimes when sellers sell not only digital services but also goods (for example digital books and printed books) need to get two numbers: a non-union OSS number and a union OSS number. If you need advice on what OSS number you need you may ask a question here and our tax expert determine whether you need to register and what scheme is optimal in your situation.
Import one-stop-shop registration –
Is a registration number for all sellers and marketplaces who import goods from any country outside of the EU to an EU country. This number inserted in the H7 declaration allows a parcel to go directly to a final customer without customs formalities. This number can be used to defer VAT for parcels with a value of fewer than 150 euros. For more expensive parcels there is another simplified scheme. EU-established businesses can get an IOSS number in their country of establishment by applying online. Normally it takes one week to get an IOSS number for an EU-based business. For a non-EU business that wants to obtain an IOSS number, it is needed to appoint an EU-based intermediary. Lovat can be your intermediary for Import one-stop-shop scheme. You can apply online. Average time to get an IOSS number with Lovat as an intermediary is from one day to one week.
What you cannot declare via IOSS simplified scheme:
- Import of goods with an intrinsic value of more than 150
- EuroIncoming invoice
- VAT paid at customs clearance
The pros of OSS registration are more or less clear but there are some cons to these schemes.
1First, the most significant minus is – the absence of retrospective registration. If you started to sell in the previous quarter or month you cannot apply for the retrospective registration and submit VAT returns retrospectively.
2The second minus is the strict due date – if you missed a deadline, you cannot submit a tax return for a missed period. This peculiarity arises from the obligation of reporting member states to transfer tax data to the relevant tax authority. But in the following period, a taxpayer can make changes to the previous tax return.
Lovat offers the one-stop-shop portal for data collection, reporting, keeping records, and VAT payment responsibility for all OSS schemes. Everything is online, starting from IOSS registration followed by data collection and ending VAT payment.
What does IOSS mean?
Do you provide IOSS registration service? What is the cost and how does it work?
Yes. We provide the service of IOSS registration for 200 EUR. To start registration we need good colored scans: passport (national ID card), Certificate of incorporation, Trade register extract, VAT certificate, and Articles of Association.
We are a non-EU company. We sell goods from Turkey to the EU. Is it obligatory for us to appoint an intermediary for IOSS registration?
Yes. If you are a non-EU business you need to appoint an EU company as an intermediary to be able to be registered for IOSS. The exception is Norway.
We are a non-EU business selling to Germany and Spain. Should we be IOSS registered only in these countries?
You can register in any country you want. The IOSS number will be applicable throughout the EU. We provide the service of IOSS registration in France (soon Latvia will be also available).
We are a UK-based company. We sell Makeup and beauty products to the EU. Are we obliged to register for IOSS?
IOSS registration is not mandatory. But if the seller is not registered in the IOSS, the buyer has to pay the VAT and usually a customs clearance fee charged by the transporter. Besides, you cannot declare via these simplified schemes: 1) Import of goods with a value of more than 150 Euro; 2) Incoming invoices; 3) VAT paid at customs clearance.
If I plan to change the intermediary in the future, will it be possible to use the same IOSS number?
No. In case you change the intermediary, your IOSS number will be canceled. As a the IOSS number is provided for a certain intermediary. You will need to re-register for IOSS with a new intermediary.
I sell to several countries in the EU. Should I buy a subscription plan for each of them for my IOSS return?
No, for IOSS return you only need a one-country subscription- country of IOSS number. You will get figures for all 27 countries for B2C distance sales. See how you can file IOSS return here
I sell goods to the EU by Aliexpress. I am registered for the IOSS number. Should I use my IOSS number or the IOSS number of Aliexpress?
In case you sell goods by OMP -Aliexpress, you should use the IOSS number of Aliexpress.
What documents are needed to register for OSS?
If you are an EU business and have a VAT number in your domestic country you don’t need additional documents only a filled Application form.
Can I check if the seller declared VAT in IOSS by using the number?
No, it is impossible to check such information. But you can check if your supplier filled the H7 form with his IOSS number- it should be enough if you are a buyer. You can find details in our blog.
If I am a non-EU business and want to obtain an OSS VAT registration number can I do it without general VAT registration?
Yes, you can get OSS registration (non-union scheme) without General VAT registration. As a non-EU taxable person, you can register to OSS if you comply with two conditions: 1) You haven't a business establishment in the EU; 2) You are not registered for VAT in the EU.
I'm an Amazon seller and use FBA. Can I deregister in the pan-EU countries and get an OSS number instead?
No, as you use warehouses in Italy, France, Germany, Poland, Czech, and Spain you cannot report your VAT data to these countries via OSS, you need to keep your pan-EU VAT numbers.
We are an EU business and From 1 st of July 2021 eBay will pay my VAT in EU countries, should I still report such sums in OSS return?
Yes, if you are an EU business you will need to report all revenue with 0% VAT which you sell via OMP.
A sale at Etsy is less than a threshold in all countries, will the marketplace keep selling my goods across the EU without VAT?
No, there will be no distance sales thresholds after 1 st of July 2021. That means that you need to register for OSS if you want to sell across the EU, even though VAT will be deemed by OMP.
We are OMP, can we register for OSS to report and pay VAT across the EU?
No there is a special VAT registration for OMP.