The Import One-Stop Shop (IOSS) is a scheme introduced by the European Union (EU) on 1 July 2021. The aim of this initiative is to simplify the process of declaring and paying VAT for distance sales of imported goods with a value not exceeding €150.
What is IOSS?
The IOSS facilitates the collection, declaration and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. The IOSS is used if the goods are located outside the EU at the time of the sale (i.e., the goods are imported). The scheme is applicable only if the goods are not subject to excise duties.
The IOSS allows the VAT to be paid at the point of sale to the online shop. This ensures that the buyer only pays the final amount displayed at the checkout, and no additional charges are incurred when the goods are delivered.
How does IOSS work?
If the online seller is registered in the IOSS, they will charge VAT at the point of sale and will be responsible for declaring and paying that VAT to the EU. The VAT rate used will be the one applicable in the EU country where the goods will be delivered.
The IOSS registration can be used by EU and non-EU-based online sellers and electronic interfaces such as marketplaces or platforms. The registration is valid in all EU countries.