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.
Where can I register for an IOSS number?
If registering for the scheme from outside the EU then Ireland is viewed as the preferred option for many businesses. The Netherlands is a good alternative — although it should be noted that many member states don’t appear to have the software systems currently set up required to actually implement this programme efficiently at this time.
How is OSS different from IOSS?
The One-Stop Shop (OSS) platform is similar to IOSS with the purpose still being to simplify the declaration and the payment of VAT for B2C sales up to a value of €150. However, the OSS platform is specifically designed for merchants based in the EU selling goods to customers who are also within the EU.
Depending on your location, you may need to use either an IOSS or OSS number.
How do I use my IOSS/OSS numbers for orders?
You can inform us of your IOSS or OSS numbers by updating your company details in your Prodigi account. These details will then be used for all applicable orders automatically.
Regarding your IOSS guidelines, it seems that these are only applicable for orders being shipped from outside the EU into the EU. Does this mean that import tax / customs fees don’t apply to Prodigi products manufactured in the Netherlands?
Yes, that’s correct! Since IOSS only applies to orders imported into the EU, there won’t be any such charges for orders being shipped from the Netherlands to the EU.
How do I collect the correct VAT if I don’t have an EU VAT / IOSS / OSS number?
You should consult with your tax advisor to determine whether you should be registered for VAT and how much VAT to charge your customers.
Do I need to have a VAT / IOSS / OSS number to be able to place orders with Prodigi?
No. We supply products to both retail and wholesale customers, some of whom are not VAT registered. If you’re unsure as to whether or not you should have one, you should consult with your tax advisor.