{"id":786,"date":"2022-11-16T11:29:01","date_gmt":"2022-11-16T11:29:01","guid":{"rendered":"http:\/\/uptime.tommusdemos.wpengine.com\/?p=786"},"modified":"2022-11-25T15:48:17","modified_gmt":"2022-11-25T15:48:17","slug":"the-import-one-stop-shop-ioss-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/salesvat.com\/blog\/the-import-one-stop-shop-ioss-what-you-need-to-know\/","title":{"rendered":"The Import One-Stop Shop (IOSS): What You Need to Know?"},"content":{"rendered":"

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With effect from 1<\/span>st<\/span> July, 2021 the new Import-One-Stop-Shop (IOSS) scheme will be introduced, as part of the new EU VAT reforms for eCommerce sellers and online traders. After the 1<\/span>st<\/span> of July, VAT exemption for importing goods to the EU, with value not exceeding EUR 22 will be withdrawn \u2013 which means all goods imported to the EU will be subjected to VAT declaration and payment.<\/span><\/p>\n

What is the Import-One-Stop-Shop (IOSS) scheme?<\/b><\/h2>\n

This scheme is specifically for the sale of \u201clow value\u201d goods (not exceeding \u20ac150) from outside the EU to buyers in the EU Member State. If the value of your goods is higher than \u20ac150, then you should follow other traditional Import VAT rules. In simple words, IOSS facilitates <\/span>charging VAT rate of the destination country, at the point of sale for low value goods not exceeding \u20ac150 .<\/span><\/i><\/p>\n

How does it work?<\/b><\/h2>\n

1. Online sellers:<\/b><\/h3>\n

If you are an online seller registered for the IOSS scheme, then you will be required to apply VAT on all goods imported and sold to your buyers in the EU. You will have to apply VAT rates of the EU Member State where your goods will be delivered (buyer destination).<\/span><\/p>\n

2. Market places:<\/b><\/h3>\n

Electronic interfaces<\/span><\/a> or market places registered for the IOSS scheme will be obliged to collect VAT on goods sold to EU customers. In this case, the buyers will be charged at the time of purchase, so they don\u2019t have to pay anything additional at the time of delivery of goods.<\/span><\/p>\n

Note:<\/b> If the seller is not registered in the IOSS, the buyer in EU will have to pay VAT, in addition to the custom clearance fee charged by the transporter, courier or postal service.<\/span><\/p>\n

3. IOSS VAT reporting and filing:<\/b><\/h3>\n

You will be filing quarterly IOSS VAT returns in your nominated EU Member State, where you are IOSS registered. You will be able to declare import VAT dues and make payments for all EU countries through a single portal.<\/span><\/p>\n

Advantages of the new Import-One-Stop-Shop (IOSS) scheme<\/b><\/h2>\n