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UK IOSS Intermediary confusion

  • Jun 17, 2021 | Avalara

Graphic of UK EU depicted as two cogs

Confusion remains on EU country requirements for UK businesses applying for the new Import One-Stop-Shop (IOSS) registration and whether they will require a local Intermediary.

From 1 July 2021, any imported sale of consignments not exceeding €150 will be liable to import VAT at the checkout – instead of at customs at the point of import. Sellers or facilitating marketplaces can use the new IOSS return to report such transactions across all 27 EU member states rather than VAT register in each state.

Non-EU states must appoint an Intermediary, a type of Fiscal Representative. Following the end of the UK’s Brexit transition period, this includes the UK. However as part of the Brexit Trade and Cooperation Deal, the UK and EU included a ‘mutual assistance’ clause on tax. Generally, this removes the need for EU states to impose Fiscal Representative obligations on third-country states.

However, it is unclear if this is being applied by the EU states. Italy usually imposes Fiscal Representative requirements on non-EU taxpayers but have confirmed no IOSS intermediary is required for UK companies. Ireland is requiring the appointment of one for UK businesses, even though they do not generally require non-EU businesses to appoint a fiscal representative. Spain has not yet opened registrations for IOSS so we are still waiting to understand the path they will follow.

Contact Avalara if you need any assistance with an IOSS registration.

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Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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