The implementation of tax reform has prevented platform sellers from using double taxation and other means to reduce costs, and major cross-border e-commerce platforms are also busy withholding value-added tax. For self-shipping sellers with independent websites or self-built websites, after the implementation of the EU tax reform, goods that were not subject to tax before must also be VAT compliant, so it is urgent to register for IOSS.
Sellers of independent websites do not rely on the platform, and VAT cannot be withheld and paid by the platform. Therefore, sellers of independent websites and self-built websites need to declare and pay VAT by themselves, and apply for a registered IOSS number by themselves. However, IOSS is not a mandatory project, and sellers can decide whether to apply based on their own circumstances. If the value of the goods is less than 150$, you can use IOSS to ship the goods; if the value of the goods exceeds 150$, it is recommended that the seller register a VAT tax number in the receiving country, register for customs clearance and make subsequent declarations by himself.
1. If an independent seller uses an overseas warehouse to deliver goods:
No matter the value of the goods, IOSS is not suitable. The seller needs to register for VAT in a country with inventory in the EU. During customs clearance, sellers must use their own VAT to pay import VAT (which can be deferred or deducted and refunded in the future); when selling goods, sellers must declare sales VAT by themselves. In addition, the EU unified threshold for distance sales has been lowered to 10,000 euros. If the distance sales process later exceeds the 10,000$ threshold limit stipulated in the policy, in addition to registering for VAT in other destination countries for declaration, you can also choose to register an OSS tax number to simplify and comply with the tax declaration of each EU member state.
2. If the independent seller uses self-delivery:
If the value of the goods package does not exceed 150 euros, it is recommended to register for IOSS quick customs clearance;
If the goods package value If the value exceeds 150$, it is recommended that you register for VAT and clear customs according to the current VAT method.
3. What are the advantages of using IOSS?
(1) Logistics simplification:
Using IOSS can simplify reporting VAT and selling goods over long distances from non-EU countries/regions. Goods can enter the EU and can circulate freely in any member state, and freight forwarders can declare imports in any EU country; without IOSS, goods can only be cleared at the final destination.
(2) Quick settlement:
After using IOSS, small parcels with a value of less than 150 euros can enjoy fast customs clearance when imported into the EU. This allows customers who purchase products to get their purchased products faster.
(3) Reduce returns:
When customers purchase goods, they pay the tax-included price. When the goods are imported into the EU, the buyer no longer pays additional VAT and VAT. Clearance fee. This will improve the customer’s shopping experience and also reduce the occurrence of returns.