What is an IOSS Number and Do I Need One?
The Import One Stop Shop (IOSS) offers a simplified way for e-commerce businesses outside the EU, including the UK, to handle VAT on sales to EU customers. Today, we’ll explain what an IOSS number is, how it works, and whether you need one.
An IOSS VAT registration number allows your e-commerce business to register in a single EU member state. This lets you declare and pay import VAT for all EU sales with ease. Using this system streamlines VAT accounting by applying a consistent VAT rate across all transactions.
Using your IOSS number for shipping means customs won’t collect VAT at the border. Instead, you handle it through a monthly IOSS return, simplifying the whole process.
Here’s when the IOSS number comes into play:
- The goods are outside the EU when sold.
- They’re shipped in consignments valued at no more than €150.
- They aren’t subject to excise duties.
Why did the EU introduce IOSS numbers?
To fight fraud, even the playing field for retailers, and improve VAT collection across the Union.
What does an IOSS VAT number look like?
It’s a 12-digit alphanumeric code, starting with “IM”, followed by a member state code and a unique number, like IM1234567890.
How do I get an IOSS number for shipping?
Inside the EU, register in your member state. Outside the EU, you’ll need an EU-established intermediary.
Platforms like Amazon and eBay simplify this by offering their IOSS numbers when you register with them.
Consider DDP Shipping Service from China for Seamless EU and UK Deliveries
If your shipment exceeds €150 in value or if you choose not to use the IOSS, explore our DDP (Delivered Duty Paid) Shipping Service from China. DDP ensures that all duties and taxes are paid in advance, providing a seamless delivery experience without unexpected costs or delays for your customers.
This service not only simplifies the customs process but also enhances customer satisfaction by eliminating potential post-purchase fees. By choosing DDP, you take responsibility for the entire shipping process up to the point of delivery, ensuring a smoother transaction for both you and your customers. Consider DDP as a reliable alternative to standard shipping terms, especially for higher-value shipments that fall outside the IOSS framework.
Do I have to register for an IOSS number?
It’s optional. Not using IOSS can lead to higher costs and a less smooth customer experience.
When should I charge EU VAT?
Always apply the VAT rate of the customer’s country at checkout. You can find a list of VAT rates by EU country for easy reference.
Is IOSS Mandatory for Online Merchants and Interfaces?
No, there is no obligation for online merchants and interfaces to use the IOSS. They have the option to register for the IOSS in a single EU state and handle their VAT obligations across the EU through this registration. If they opt into the IOSS, it covers all EU Member States consistently.
