The Import One Stop Shop (IOSS) is an electronic portal that businesses can use from 1st July 2021, to comply with the new VAT system coming into effect.
Currently, any items imported into the EU under €22.00 are exempt from Import VAT. However, this is set to change from 1st July 2021, when all commercial goods imported into the EU will be subject to Import VAT.
The IOSS allows suppliers and e-commerce businesses selling imported goods under €150.00 to buyers in the EU, to declare and pay their VAT to the tax authorities.
The electronic portal simplifies all payments and declarations by allowing them to be managed by the seller in one place, instead of creating complications and making the buyer pay the VAT. The import VAT amount determines on which EU member state the delivery address is in.
IOSS registered goods will be able to pass through customs as the system will recognise that the item has been declared and all duties have been paid, resulting in a simplified and faster delivery experience for both the buyer and the retailer.