The EU’s Import One-Stop Shop (IOSS) scheme simplifies your VAT obligations
Avalara’s IOSS service lets you take advantage of the scheme to make selling easier.
You’ll get the all-important IOSS number you’ll need for all carriers within 7 days
With just a single registration needed to trade with all 27 EU members, you’ll greatly reduce your reporting requirements and free up time for selling
Managing monthly returns will be a breeze with an easy-to-use portal
Avalara will be your expert intermediary, wherever needed, and handle the filing and payment of VAT to tax offices on your behalf
Get started with IOSS in three easy steps
Start benefiting from IOSS
Protect your bottom line by reducing your compliance costs, reclaiming VAT on refunds, and removing import VAT payments.
Your customers’ experience will improve with more accurate pricing at checkout and fast ‘Green Clearance’ through customs, meaning no nasty surprises and fewer shipping delays.
Why you should choose Avalara
Avalara’s IOSS service is backed by the world’s most powerful tax engine. It’s the most comprehensive compliance tool on the market:
Covers all 27 EU members
Helps digital services, not just ecommerce sellers
Offers the best shipping option available
Provides a named contact for customers, and never offloads to third parties
Helps with HS Codes, cross-border customs duties, and Trade Restrictions Management
Need more information about IOSS? Read the answers to our customers' most frequently asked questions.
The Import One-Stop Shop (IOSS) is a simplified reporting model where you register in one location for the sales you make to EU consumers in the 27 EU member states, where the consignment value of the goods shipment is below €150. This creates a more efficient ‘Green Channel’, with quick and easy customs clearance.
You are required to display the amount of VAT paid by the buyer in the EU, by the time the ordering process is finalised (at the latest). You will need to produce an invoice showing the price paid by the buyer in EUR, this will need to be provided alongside your IOSS number during the customs declaration process. This allows the import VAT to be exempt when the goods pass through customs. You then report the VAT you collected at point of sale in the new monthly IOSS returns.
Yes, as of 1 July 2021 the EU ended its low-value consignment relief threshold of €22, which means all products going into the EU will attract VAT for either the buyer or the seller.
VAT is now due on all goods shipped into the EU but once the value of goods are above €150 there could also be duties that would be applicable on top of the VAT. There are many things, like the origin of goods, that could affect whether duty is required to be paid.
This will depend on the country you are applying with and whether you are using an intermediary. Avalara is currently obtaining numbers through its intermediary within a week from when the completed documentation is submitted. However tax office demand is increasing so we expect there could be delays in the future.
Your IOSS number cannot be backdated and applied to shipments you have already made.
If you only make sales through marketplaces then you will not be required to have your own IOSS number because it is now the marketplace’s responsibility to report the transaction to the end consumer. You will make an exempt sale to the marketplace and they will report the VAT.
Many marketplaces are following the IOSS approach, if they choose this approach they will provide you with their IOSS number and produce the invoices you need to provide to your carrier to ship the goods
No, IOSS is a simplified process that allows you to ship to all 27 EU member states through one singular registration. You can still continue to ship through the old DAP and DDP models (see next question) but if you choose to use IOSS then all transactions must be reported under IOSS going forward, there is no pick and mix.
The answer is it depends on the model you are planning to use. There are currently two popular models but with the introduction of IOSS there is now a third.
Delivery At Place - You are not required to charge VAT to the customer as this will be borne by the customer before they are allowed to receive the goods.
Delivery Duty Paid (DDP) - Businesses usually charge but it’s not mandated to show the customer the charges when following this model
Import One-Stop Shop (IOSS) - Businesses must charge and show the VAT amount they are charging to the customer
Unfortunately IOSS does not cover the shipment of these goods so you will be required to use one of the previous models like DAP or DDP.
Intermediaries such as Avalara are responsible for the compliant filing and payment of the VAT under this scheme. The intermediary is jointly and severally liable with the business registering for IOSS. The intermediary is required to pay the tax office on the business’ behalf.
An intermediary must be appointed when a business is established outside of the EU. All EU businesses are not mandated to appoint one due to the mutual assistance agreement, Norway is the only non-EU country with an exemption from appointing an intermediary.
Yes, each country has a slightly different method on how these need to be reported but you can report this much the same as a usual return of goods on your IOSS returns.
Whatever your challenges, we’re here to help
As an ecommerce business, we know you’ll be facing unique challenges. Avalara manages the complex tax scenarios retailers face with robust solutions to fit your business and system needs.
You need to be wherever your customers are. Avalara automates your tax compliance, no matter how diverse your sales channels.
Claiming tax back on returned products can be a nightmare. Our solutions make it easy to see what's been paid and what's owed.
Diverse supply chains can increase tax complexities. With a full audit trail as standard, you can track your tax liabilities and remittance – only paying what you need to.
We offer a tiered approach to pricing so you get the best option for your business, with costs that won’t spiral as your success grows.
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