Since the EU tax reform, the words “IOSS” and “OSS” have become common words in cross-border e-commerce. Although “IOSS” and “OSS” are only one letter apart, they represent different meanings.
IOSS (Import One-Stop Shop), that is, the one-stop declaration system for EU imports is for merchants importing from non-EU countries to the EU.
OSS (One-Stop Shop) EU One-Stop Declaration System is applicable to individuals or companies in EU countries who sell products to customers in other EU countries.
Who needs to register IOSS?
1. E-commerce platforms, such as (Amazon). eBay, etc.) need to register IOSS.VAT to withhold and pay VAT for sellers on the platform.
2. Self-delivery or independent station sellers who do not rely on e-commerce platforms and are not registered EU companies need to register IOSS, VAT
Sellers who set up companies or overseas warehouses in the EU are more suitable for the OSS EU One-Stop Declaration System.
Of course, although VAT and IOSS both serve the same purpose of value-added tax, this does not mean that VAT must be included when registering IOSS. If the following requirements are met, you can only register IOSS:
(1) The net value of the goods does not exceed 150 euros;
(2) Business-to-individual sellers (B2C);
(3) The goods do not need to pay consumption tax.
If you need to register IOSS, you can register in any EU country, but you need to entrust a VAT agency in the EU country to help the seller fulfill the IOSS obligations. The country where the agency is located will be the seller’s registered country.
Using IOSS helps simplify the customs clearance and declaration and payment of VAT for imports below 150 euros into EU countries. This process helps sellers to quickly clear customs, simplify logistics, enhance the buyer experience, and reduce the compliance burden.
It should be noted that one seller corresponds to one IOSS. No matter how many self-built websites a company operates, if it has a store on the Amazon platform and also operates a self-built website, it is not compliant to use Amazon’s IOSS on the self-built website. Mixing IOSS may result in failure to clear customs and may also lead to tax audits.
The above is the content related to IOSS registration shared with sellers, I hope it will be helpful to sellers. LianLian Cross-border Payment allows users to conduct cross-border business with peace of mind and confidence with professional and considerate services, helping more users to bring excellent products and services to the global market in a more efficient way for better operation.