Today, follow the small series to fully understand IOSS.

From 1 July 2021, European Union Abolishing the exemption from value added tax (VAT) on imported goods worth up to €22. As a result, all goods imported into the EU from non-EU countries, regardless of their value, are subject to VAT. Import one-stop shop (IOSS) aims to promote and To simplify the value No more than 150 euros The collection, declaration and payment of VAT for remote sales of imported goods.

IOSS also makes the process easier for buyers, buyers only in buy As a result, you will not face any unexpected charges when the goods are delivered. If the seller is not registered with IOSS, the buyer is required to pay VAT and customs clearance fees normally charged by the shipper.

To put it simply, for our cross-border e-commerce sellers, the value of a single order is less than 150 euros (value does not include VAT and freight), IOSS registration and declaration is applicable to independent site sellers, from non-EU country stock direct to EU consumers. For goods worth more than 150 euros per order, IOSS does not apply and will be taxed when imported into the EU.

IOSS registration and declaration are not applicable to sellers who facilitate sales through third-party sales platforms (such as AliExpress, ebay, Amazon, etc.), E-commerce platforms involved in facilitating sales will be deemed to be selling to EU consumers supplier, E-commerce platforms are responsible for VAT, and need to register IOSS and provide IOSS information to sellers.

First of all, a single order of goods worth less than 150 euros is sent directly from non-EU stock to EU consumers, and the seller has to deliver according to the order destination (Eu buyer's home country) Tax rate calculation and payment of VAT; The operation process of IOSS is shown in the figure above.

first step: IOSS registration: 1) Eu companies can register on the IOSS portal in the country where they are registered. 2) Non-EU enterprises (UK i.e. other third country enterprises), they usually need to designate one in A tax responsible person established by the European Union To meet the VAT obligations under the IOSS.

second step: Buyers (customers) in the EU place orders on your independent website and your goods are stored in a third country outside the EU.

third step: When the EU customer completes the order payment, the payment amount is included including The amount of VAT in the country where the customer is located.

fourth step: Goods are transported to EU by logistics company (post/express).

Step 5: Goods are declared for import in any country through the customs clearance agent of the logistics company.

Step 6: When the EU customs receives IOSS VAT information in the customs declaration database file, it will automatically check the validity of IOSS VAT database. Customs will not impose VAT on goods imported through IOSS if the IOSS VAT number is valid, the consignment name is not a special product and the intrinsic value of the individual goods does not exceed eur 150.

Step 7: After customs inspection, the consignment will be released duty-free (VAT and tariff-free) and shipped to the destination address of the customer in the EU.

Step 8: The tax responsible person (the tax responsible person entrusted by the EU company or the non-EU company) passes IOSS registered country IOSS portal to submit an electronic monthly VAT return and submit the corresponding VAT to the tax bureau in the country where the IOSS is registered.

Step 9：IOSS revenue After receiving the tax return, we will meet customs Submitted by Add up the data for comparison, 

Check whether the amount of duty-free imports matches the amount declared by IOSS. If there is no match, the TAX office will first ask the IOSS tax responsible person.

All IOSS VAT identification numbers issued by the tax authorities of the Eu member States will be signed Electronic means To all customs authorities in the EU. IOSS VAT Database id Don't open. When EU customs receives IOSS VAT information in the customs declaration database file, it will automatically check the validity of IOSS VAT database.There is no customs clearance agent (e.g. postal operator, Courier company, customs agent, etc.) for goods declared to customs alidity of THE IOSS VAT number cannot be checked.

The tax intermediary must be a taxable person established in the EU. He must fulfill all provisions of the IOSS Import Plan for the seller or e-commerce platform that has designated him as the tax responsible person obligations, Including the submission IOSS VAT return and payment of VAT for remote sales of imported low value goods.However, sellers or e-commerce platforms are still subject to VAT obligations, including paying VAT with tax intermediaries.

In effect, tax offices will try to recover VAT from tax intermediaries, and if this fails, they can try to recover VAT from the independent sellers or sales platforms they commission. In addition, it should be pointed out that tax intermediaries are not necessarily customs clearance declaration agents.

IOSS is a monthly filing, and the deadline for filing and paying VAT to the tax office where the IOSS is registered is the filing period

The last day of the next month.

IOSS VAT return will contain the sale in the member state corresponding to the destination Total value of goods,Corresponding VAT rate And what you have to pay Total value added tax.

The tax responsible person is required to submit monthly IOSS returns to the IOSS Registration Internal Revenue Service every month. Need special attention, The sales record data provided by the seller to the tax responsible person should be consistent with the data reported using ioSS customs clearance.

Import VAT VAT is paid by the seller to the bank account of the tax responsible person, who pays to the tax bureau.

Independent sellers using IOSS should ensure that they comply with the following VAT requirements:

• Provide customs clearance agents (e.g. postal operators, Courier companies, customs agents, etc.) who declare goods at EU borders with the information required for customs clearance in the EU, including THE IOSS VAT identification number;
• Display the amount of VAT paid by the customer in the EU when the customer completes the payment of the order;
• Make sure to press EU customers In your country VAT is levied at applicable VAT rates;
• Ensure the value of each consignment Not exceeding 150 euros;
• Where possible, show the price paid by the buyer in euros on the invoice;
• Submit electronic monthly VAT returns through the IOSS portal of the country where IOSS is registered;
• A month Pay the VAT declared in the VAT return to the tax bureau of the country where IOSS is registered;
• Maintain all eligible IOSS sales data, reporting and financial records 10 years;