On the 1st of July 2021, the European Union – as part of its wider VAT reform – launched the Import One-Stop Shop (IOSS) platform to simplify the declaration and payment of VAT for B2C imports from outside of the EU up to a value of €150.
This optional platform requires you to register with a single EU Member State to manage your sales VAT throughout the EU, removing the need to register for VAT in every country you’re selling goods to.
When selling goods to consumers in the EU, registering with the IOSS means you can collect accurate VAT for the purchase from the consumer at the point of sale, which can then be declared and paid in a periodic VAT return. Shipments containing a valid IOSS number with an intrinsic value of less than €150 (NB this is only a scheme for small value goods) will therefore not be subject to import VAT — since VAT will be taken based on the transaction’s origin — potentially helping products move through customs quicker.
Registering for the IOSS platform isn’t obligatory, and you can continue to declare and pay VAT on EU imports as you do today. You can read more about these changes on our website.
GUIDANCE WARNING: Please note that the above guidelines do not constitute tax, legal, or other professional advice and must not be used as such. It is the sole responsibility of all Prodigi clients to comply with all legal and sales tax requirements for issuing sales tax or VAT invoices in respect to your sales transactions. If you are unsure as to what the contents of an invoice you issue to your customers should be, we suggest that you contact your tax advisor. Prodigi cannot assist you with any legal or tax advice as we’re not accountants or legal experts, and we stress that none of the above may be taken as professional advice.