Take action quickly for 01 July
If you’re a non-EU business selling goods valued at up to 150EUR¹ to customers in the EU, there are some important changes taking effect from 01 July 2021.
These changes will mean that there will no longer be an exemption for parcels valued up to 22EUR and therefore all the goods you are selling will now be subject to VAT, calculated at the local rate of the country your customer is based in.
Selling to customers in lots of different EU countries could get quite complicated quickly, which is why the EU has introduced a scheme called the “Import One Stop Shop” (IOSS).
What is the "Import One Stop Shop"?
IOSS allows you to register with just one of the 27 EU tax authorities, and to submit one monthly IOSS VAT return in a way that allows the right payment of VAT across the other EU tax authorities where your customers are based. Getting IOSS ready is estimated to take 5 - 7 weeks² so businesses need to act quickly to meet the 01 July deadline.
We've developed a service that helps take the complexity out of this scheme, so that you can stay focussed on keeping your customers happy and your business running smoothly. We'll get you set up and registered for IOSS and prepare and submit your monthly IOSS VAT returns, dealing with all queries that arise along the way.
Our service is best suited to businesses that are sending larger volumes of parcels into the EU each year. You'll also need to have an accounting system that is able to charge the correct VAT rate applicable on the goods you are selling into the EU and be collecting this tax at the point of sale.
How can our IOSS service help you?
Act fast to meet the 01 July deadline: how to get IOSS ready in 5 - 7 weeks²
What are my other options if I don't want to register for IOSS?
For businesses who only send a very small number of parcels to the EU each year, it may be better to consider a 'pay per parcel' solution whereby a third party acts as the deemed reseller - allowing you to use their IOSS number to send parcels to customers located in the EU.
If you have no solution at all in place, your EU customers will have to pay the correct VAT plus handling / clearance fees before they can receive their parcel. This could result in your customers refusing delivery of the goods, especially if they weren’t aware about this cost when they made the purchase. If customers refuse delivery this could increase the risk of your goods getting lost in transit and cause additional costs.
Modern technology and a name you can trust
At Deloitte, we've been bringing world-leading tax and accounting expertise to our clients for 175 years. With approximately 330,000 people in 150 countries, we have the scope to bring a global and local perspective to your business needs.
Frequently asked questions
When will I get my IOSS number?
What forms of ID are needed to onboard me as a customer of Deloitte?
What happens if I do not use IOSS?
What does the EUR 150 limit refer to?
What exchange rate should I use for customers paying in a non-euro currency?
What is the deadline for the return?
How do I pay the tax due and what is the payment deadline?
Can IOSS be used for B2B sales?
Do I need an intermediary?
What if I am selling via an online marketplace?
I am from Northern Ireland (NI), why is IOSS not relevant for me?
If I have a question about the Deloitte IOSS service, who can I contact?
¹Where you are selling goods to EU customers that are worth more than 150 EUR, it's important to note that you won’t be able to use the EU's IOSS scheme for this scenario. For goods above this threshold, all VAT and customs duties (plus any handling / clearance fees) will be collected from the customer at the point of import.
²We expect the process of getting IOSS ready to take 5 - 7 weeks, from the time you register with Deloitte. This timeframe is based on the assumption you can provide all the information in a timely manner, and is subject to tax authorities' processing times. To increase your chances of having an IOSS number ready for 1st July, you should register as soon as possible.