Missed the 1 July EU VAT reform deadline? Don't worry, it’s not too late to register

If you missed the EU VAT reform starting from July 1, it’s not too late to register. We've shared a lot of information over the last few weeks to prepare businesses for the changes, but remember: July 1 marked the introduction of Import One-Stop Shop (IOSS) – it’s not a hard deadline.

Register at any time

The IOSS is an ongoing opportunity, which means that you can register for the scheme at any point. It’s important that as a seller, you’re meeting the conditions to be registered for IOSS. Before going ahead with registration, you will need to ensure you have all the processes in place to ensure a positive outcome. For example, some sellers aren’t displaying VAT at point of sale which then slows down the registration process.

Streamline the transactional process

Not being registered won’t affect your ability to trade, but it can limit your options for sending goods.

The complex process of shipping needs to be well coordinated between the seller and the relevant stakeholders, including the manufacturer, retailer or wholesaler, to ensure an efficient service and acceptable timelines for the customer.  

The existing Delivered-At-Place (DAP) model can see sellers paying additional shipping costs, whether a sale happens or not. However, the introduction of the IOSS is designed to make the process of online transactions easier for everyone involved. For sellers, this means an improved import and sales process from start to finish. For your customers, the shopping experience is more efficient and user-friendly. 

As a result of the introduction of IOSS and its associated benefits, there are an increasing number of logistics providers opting to solely facilitate IOSS consignments. In short, IOSS is a better model overall for the whole ecommerce lifecycle. 

If you’ve not registered yet, don’t worry. Whether you’re an EU or non-EU seller, you can still take advantage of accessing the market to streamline and simplify the VAT payment process. 

The benefits of registering for IOSS are:

  • Goods that are shipped in this way are eligible for an expedited customs process, which means that the changes are facilitating efficient delivery times. The traditional method can result in consignments held at customs due to incorrect paperwork or unpaid VAT.

  • Compliance is easy. IOSS enables you to trade with a single VAT registration and one VAT return to cover you for all sales below €150 across the EU. 

  • There are no hidden fees, which boosts customer loyalty and overall experience. Prior to its launch, customers would place an order for one price, but be faced with unexpected charges such as VAT and handling fees in order to collect their parcel. 

  • Under IOSS your business will be registered in one country instead of each individual country so you will only need to be aware of the IOSS rules in the country you are registered as opposed to each individual EU country.

  • You will benefit from not having to facilitate real-time import VAT payments for each consignment directly to Customs Authorities or through the logistics company.

  • You can benefit from reclaiming the VAT back on returned products which was previously very difficult under the old DDP model where the customer is listed as the import of record. 

  • Previously under the DDP model you would be required to pay clearance/disbursement charges to your logistic provider.

We can help. If you have further questions about how to register for IOSS or if you would like further advice or support on how to sign up for IOSS, speak to the Avalara team today.

Take advantage of IOSS with

Avalara's end-to-end IOSS solution

Sell to all 27 EU member states with just one VAT return. Get your business ready with Avalara’s end-to-end IOSS solution.

Recent posts
Singapore GST reforms for foreign sellers
Portugal delays VAT returns and payments on COVID concerns
IOSS, MOSS, OSS: what does it all mean?

Ecommerce Tax Trends Report 2022

Get a comprehensive look at the latest developments in the ecommerce industry.

Ecommerce Tax Trends Report 2022

Stay up to date

Sign up for our free newsletter and stay up to date with the latest tax news.