What is the IOSS Registration?
IOSS stands for Import One Stop Shop, which is a new VAT (value-added tax) scheme that was introduced in the European Union (EU) in July 2021. The IOSS is designed to simplify the collection and payment of VAT on cross-border sales of low-value goods, which are goods with a value of up to €150.
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Under the IOSS, businesses that sell low-value goods to customers in the EU for products that are coming from outside of the EU can register for VAT in a single EU member state and then collect and pay VAT on their sales to customers in other EU member states through a single online portal. This simplifies the VAT compliance process for businesses, as they no longer need to register for VAT in each individual member state where they have customers.
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The IOSS is available to businesses that are established either within or outside of the EU, and it applies to a wide range of low-value goods, including goods sold through online marketplaces. However, there are certain exceptions, such as goods subject to excise duties or goods that are not intended for private consumers.
What is the OSS Registration?
The One Stop Shop (OSS) is a simplified VAT (value-added tax) scheme for businesses that sell goods or services to customers in multiple member states of the European Union (EU). The OSS allows businesses to report and pay VAT on their cross-border sales for products that are coming from of the EU through a single online portal, rather than having to register for VAT in each individual member state where they have customers.
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Under the OSS, businesses can register for VAT in a single EU member state, and then report and pay VAT on their cross-border sales to customers in other member states through the same portal. This makes it easier and more cost-effective for businesses to comply with their VAT obligations in multiple member states.
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There are two types of One Stop Shop schemes available under the EU VAT rules:
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The Union OSS: This scheme is for businesses that are established in the EU and sell goods or services to customers in other EU member states. It allows businesses to report and pay VAT on their cross-border sales of goods or services to customers in other member states through a single VAT return.
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The Non-Union OSS: This scheme is for businesses that are established outside of the EU and sell goods to customers in the EU. It allows businesses to report and pay VAT on their cross-border sales of goods to customers in the EU through a single VAT return.
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The One Stop Shop is designed to simplify VAT compliance for businesses operating cross-border within the EU, while also making it easier for tax authorities to collect VAT owed on cross-border sales. However, it is important for businesses to understand the specific rules and requirements of the scheme, and to ensure they comply with all relevant VAT regulations in the member states where they are doing business.
What are the benefits of using the IOSS or OSS for businesses?
✓ Simplified VAT Compliance: Streamlined process for VAT collection, reporting, and payment.
✓ Centralized Reporting and Payment: Single VAT return for multiple EU member states, reducing administrative complexity.
✓ Faster Customs Clearance: Expedited customs process for quicker delivery to customers.
✓ Improved Customer Experience: Transparent pricing with VAT included, avoiding surprise charges.
✓ Compliance with VAT Regulations: Ensures adherence to EU VAT rules for cross-border e-commerce.
✓ Competitive Advantage: Attracts EU customers, expands market reach, and enhances competitiveness.
What are the benefits of using the IOSS and OSS for EU customers?
✓ Transparent Pricing: Displays the total price, including VAT, upfront for clarity.
✓ Faster Delivery: Expedited customs clearance leads to quicker order fulfillment.
✓ VAT Compliance: Demonstrates adherence to EU tax regulations, building trust.
✓ Enhanced Shopping Experience: Provides a smoother and more convenient buying journey.
Before having the IOSS number
A business located outside the EU sells products to customers in various EU member states.
Each time a sale is made, the business needs to register for VAT in each individual member state, file separate VAT returns, and comply with different VAT regulations and thresholds.
This process is time-consuming, complex, and involves significant administrative burdens. The business may also face delays in customs clearance, potentially leading to longer delivery times for customers.
After having the IOSS number
The same business registers for the IOSS and obtains a single IOSS number.
They can now collect and remit VAT at the point of sale based on the customer's location. With the IOSS number, the business can file a single VAT return for all EU member states, simplifying the reporting process. Customs clearance is expedited, ensuring faster delivery of goods to customers.
The business benefits from streamlined VAT compliance, reduced administrative work, and improved customer experience.
Expand your business to all EU member states with just one VAT return.
Global Trade Business is here to help with the IOSS solution.
IOSS and OSS registration and returns process
Understand your business operation and needs
Have a free consultation call with us.
One of our VAT experts will review your business activities and understand your needs to identify the IOSS / OSS obligations.
Our team will ensure to have all the right data and documents. After checking all information, our local team will proceed to IOSS / OSS registration. The duration of registration process depends on the country.
Collect required data and documents
When you have the IOSS/OSS number, you need to provide us all the declaration materials to file the return on time.
Receive the IOSS/OSS number and submit returns
