From July 1st, 2021, EU is introducing new rules for the VAT treatment of cross border e-commerce. The new scheme, called OSS (One Stop Shop) will take place, in order to facilitate the sale of goods to buyers in the EU. When it comes to goods, imported to the EU from the third countries, iOSS (Import One Stop Shop) scheme will apply.
What is the iOSS?
An electronic interface made to facilitate the collection, declaration and VAT payment for non-EU sellers using any of the sales channels below for importing goods to the EU:
- E-commerce websites
- Marketplaces (Amazon, Ebay, AliExpress, Fnac, Darty, cDiscount, etc…)
- Drop-shipping sales
What are the rules to be eligible for iOSS?
- Your e-commerce business is not established in the EU territory;
- Your final clients are private individuals;
- You don’t have any stock held or purchased in the EU territory;
- The value of each shipment is below 150€;
What changed?
| Current regime | New regime |
| Import VAT exemption for low value consignments (<22€) | Exemption for low value consignments will be abolished; Import declaration will be always required |
| Consignment value >22€: import VAT due by importer of record with the right to recover + sales VAT due at the final destination | For goods valued below 150 €, only import VAT will be due, further sales will be VAT exempt |
| Marketplaces are not involved in the VAT reporting | Marketplaces become liable for VAT for the supported trade |
| VAT reporting required in each EU country of activity | VAT reporting can be done in a single declaration for all EU trade |
| Fiscal representatives are required in order to account for the VAT due in each of the countries of arrival | Only one intermediary is required in order to be able to account for all EU trade |
How does iOSS work?
Once you have appointed your intermediary established in the EU, they will be able to deal with your VAT reporting and payment obligations in the country of their establishment.
A single VAT identification will be necessary, as long as no stock will be held or purchased in the EU. The VAT due then can be paid at a single Member State, however, applying the respective VAT rates of different countries of destination.
Eurotax can assist you by acting as the appointed intermediary for your e-commerce sales in the EU. Our professionals will gladly guide you through the steps necessary to set up and make VAT declarations through iOSS. Do not hesitate to contact us.
You can also download our flyer here.
