The introduction on 1 July 2021 of the new Import One-Stop Shop IOSS is helping thousands of sellers report sales VAT on their sales of imported consignments not exceeding €150. But deemed supplier marketplaces or ‘electronic interfaces’ may also opt to use them too.
Register for IOSS – need an Intermediary?
When a marketplace wants to use IOSS, they must register with one of the EU member states’ tax authorities. For EU-resident marketplaces, this should be their domestic country. Non-EU marketplaces, including post Brexit UK platforms, they may nominate and ‘member state of identification’ to register in. Note, this may require them to appoint an IOSS Intermediary, a type of Fiscal Representative.
Once registered, the marketplace will be given an IOSS registration number. This is important for customs declarations (see below)
IOSS VAT compliance obligations for marketplaces
Marketplaces need to follow a number of rules to use IOSS. These are similar to the rules on sellers:
- For consignments not exceeding €150 where the marketplace is therefore the deemed supplier, VAT charges must be made in the checkout. VAT should be separately listed in the checkout prior to the sales
- A simplified customs declaration is required on all packages to show that VAT was charged online to the Customs authorities. This should include the marketplace’s IOSS number.
- Each month, marketplaces should complete and file IOSS return in their registered country to report all imported sales, and pay the VAT due.
- Work with the underlying seller of the good(s) to ensure that the information required for customs clearance in the EU, including the IOSS VAT identification number, reaches the EU customs where the goods will be imported to.
This reform is part of the wider 1 July 2021 EU e-commerce reform package.
But how to calculate the €150 value? VAT Calc’s in real-time global Calculator and Auditor services produce instant and accurate tax calculations for the EU commerce package changes, as well are our Filer produce automatic OSS or IOSS returns from the shared transactions.
To support the use of this regime marketplace IOSS recordkeeping rules are strict, including retaining transactional-level data for at least ten years. Marketplaces still retain the Special Arrangements option instead of taking on their sellers’ VAT obligations..