What is IOSS and why do I need it?
If you’re a non-EU business selling goods valued at up to 150EUR² to customers in the EU, some important changes came into effect on 1 July 2021.
These changes mean that there will no longer be an exemption for parcels valued up to 22EUR. Therefore all goods you sell are now subject to VAT, calculated at the local rate of the country your customer is based in.
Selling to customers in two or more EU countries, and filing returns in those countries, is more complicated than selling in just one, which is why the EU has introduced a scheme called the “Import One Stop Shop” (IOSS).
IOSS allows you to register with just one of the 27 EU tax authorities, and to submit one monthly IOSS VAT return with the correct VAT payments made automatically by the IOSS Scheme across the other EU tax authorities where your customers are based.
Our IOSS service reduces the complexity of this scheme, so that you can stay focussed on keeping your customers happy and your business running smoothly.
£2000 per year + £300 registration fee in year one (excl VAT)
How can our IOSS service help you?
Who is IOSS relevant for?
Merchants must be trading:
1. With EU customers, and shipping to the EU customer from outside of the EU.
2. With consumers. Business-to-business sales are not allowed to be included in the IOSS.
3. Individual consignments (e.g. a single parcel) valued at up to 150EUR.
4. Physical goods that are not excise goods. Excise goods typically include alcohol and tobacco and any shipment that includes excise goods cannot be dealt with under the IOSS.
Act fast: how to get IOSS ready in 2 weeks³
Maintain quality customer experience for your EU customers
£2,000 per year¹, plus a £300 registration in year one (excl VAT). Includes IOSS registration, monthly IOSS VAT filing and support.Sign up now
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 the Taxamo Assure solution whereby Taxamo act as a '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 over 175 years. With 286,000 people in 150 countries, we have the scope to bring a global and local perspective to your businesses needs.
Frequently asked questions
How much is the Deloitte IOSS service?
What is included in the Deloitte IOSS service?
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?
¹If you require custom services outside of our detailed scope of services these will incur additional costs. We will always make sure these costs are clear before you agree to the additional service being provided.
²Where 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 unless the goods are sent via Delivered Duties Paid (DDP). (You would need to check whether your parcel carrier offers a DDP solution).
³We expect the process of getting IOSS ready to take 2 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. Register as soon as possible to receive an IOSS number.