The most important change is the abolishment of the exemption of low value consignments on imports (goods of a value up to Eur 22). This will affect to all E-commerce sellers doing distance sales from a third country outside of European Union to end consumers based in Europe. In practice all goods imported into Europe will be VAT taxable and, for that reason, online buyers will have to pay VAT on all their purchases if the goods are imported as of 1st July.
If you are selling online or doing drop-shipping, IOSS is a major and significant change because you must choose if you are going to collect the VAT from buyers and then pay that VAT to each Tax Office or if you want your customer to pay the VAT at the time of delivery. It is a crucial decision with advantages and disadvantages. Most reliable sellers will register for IOSS because it generates a better consumer experience while the other option could put under risk your reputation as a seller. In addition, your website will have to be implemented to charge VAT properly.
IOSS is an electronic portal that allows businesses to comply with their VAT obligations on distance sales of imported goods. In practice the IOSS portal allows businesses to report, declare, and pay the VAT to the Tax Offices which may correspond. This is a huge simplification for sellers because they will not have to register in each country neither dealing with multiple Tax Offices at the same time.
To appoint a VAT intermediary. The intermediary will be jointly and highly liable for any VAT unpaid or due with origin in your distance sales of imported goods.
To request a IOSS number. This step will be taken for the intermediary designated and it must be requested as soon as possible to avoid late VAT fillings. Once you get this number you will be already registered for IOSS.
We can help you by registering your business for IOSS. We are offering intermediary services along with other VAT services but only to honest, respectable, and reliable non-EU businesses under strict measures of control. These VAT services go hand by hand as we need to make sure your business is paying the right amount of VAT as we will get responsible for that.
You are more than welcome to call us or to schedule a zoom/teams call if you need further information or assistance. We are here to make things easier for you so you can focus on what is important to you, running your online business.
We are currently obtaining the IOSS number in less than 3 working days for our clients.