The IOSS - the EU's new tool to make VAT payments easier

From 1st July 2021, the EU's VAT exemption for the import of goods valued up to €22 will no longer apply. All goods will be subject to VAT.

However, the EU is launching the Import One-Stop Shop (IOSS), a facility for declaring and paying VAT on imported goods.

The IOSS will cover goods dispatched or transported from outside of the EU, up to a value of €150. Goods subject to excise duty (such as alcohol and tobacco products) are excluded.

What is the benefit of the IOSS?

When buying from sellers registered with the IOSS, customers will not face unexpected customs fees upon delivery of their goods. They will only be charged at the time of purchase.

This will improve the current situation where buyers have had to pay VAT and customs clearance fees upon receipt.

How does it work?

You can register through the IOSS portal of any EU member state. You will need a "VAT fiscal representative" (an accountant) based in the EU. If your business is not EU-based, there are many companies that offer this service.

Please refer to the EU website for more details, including accounting requirements.

There's also a quick guide: All You Need to Know About the Import One-Stop Shop (PDF)

What VAT rates will apply?

The VAT rate depends on the EU member state to which your goods are being delivered. You can find a current list of VAT rates for all EU countries here.

What are the requirements for shipping documentation?

Along with the existing post-Brexit requirements for customs clearance, you will need to provide us with your IOSS VAT identification number, which we will display on your customs invoice. Or you will need to add this to your own.

We will add this field to the booking process.

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