Did you know that from 1 July 2021 for the distance sales of low-value import goods within the EU does not require a regular VAT registration but can be replaced by a simplified IOSS VAT compliance?
- What is IOSS VAT compliance?
The former VAT exemption at the importation of small consignments up to 22 EUR got replaced by IOSS (Import-One-Stop-Shop) VAT compliance as of 1 July 2021.
It is a new scheme of simplified declaration and payment of VAT within the EU, for distance sales of low-value imported goods to EU customers. The low value means an intrinsic value lower than 150 EUR. These goods will be exempt from customs duty but will be subject to VAT in the relevant EU country.
It can be filed for all EU countries from one EU member country, where the NON-EU company needs to get registered for IOSS. Thus, instead of getting registered for VAT in various EU countries, the NON-EU company is allowed to file one summarized VAT return from the one country thus saving a lot of compliance costs.
- Who are eligible for IOSS?
- EU companies (incl. EIs) who are distance sellers of low value imported goods within the EU
- NON-EU companies (incl EIs) who are distance sellers of low value imported goods within the EU (direct and indirect compliance)
If the intrinsic value of the goods turns out to be higher than 150 EUR, it will fall under the traditional importation rules.
- What to do?
If you fulfill the above criteria, you can either register for IOSS yourself or you can appoint one EU-established intermediary, such as CCSG, to represent you in all EU countries for IOSS purposes and make the VAT declarations and payments for you in the IOSS scheme.
If you are not sure whether your company is eligible for IOSS, you can contact us. We can advise you further. Please contact us!
Disclaimer: information available on this website does not constitute tax advice. If you would like a tailor-made analysis of your company’s exact tax compliance needs please contact us. We exclude all liability for inappropriate use of this information.