UK VAT & IOSS for US companies

By Camille Felappi

Dec 22, 2021|5 min read

If you are running an e-commerce business in the USA, you certainly want to sell your goods to consumers in the EU and UK as well. EU and UK are indeed huge eCommerce markets expected to keep growing this coming year. And the main benefit of selling online is to reach customers all over the world. You need to use UK VAT and IOSS services.


But when selling to the EU and UK, you must be aware of the local trade regulations and VAT obligations. The recent reform enforced in EU trade regulations led to new requirements and is impacting many US business-to-consumer companies willing to sell their goods within the EU.

If you are not complying with the new e-commerce VAT obligations, you are at risk of losing your customers within the EU. Eurora can help you go through this change and save you time and money thanks to Fiscal Representation services.


What are the new European union import regulations?

US sellers now must collect VAT on all goods that they sell to EU customers. The VAT rate depends on the country of the consumer. You must therefore determine the VAT rates of specific goods for all the EU countries you are delivering to.

In addition, you must declare in customs all goods entering the EU regardless of their value. So, when you are selling to customers in any of the 27 EU Member States you must lodge a customs declaration. As the EU also abolished the Low-Value Item Exemption, you need to declare every parcel.


What is IOSS and how can Eurora help me trade with EU?

The Import One-Stop Shop (IOSS) is the electronic portal businesses can use to comply with those new VAT obligations on distance sales of imported goods. All 27 EU members participate in the IOSS scheme.

IOSS registration is optional. However, you should consider registering. IOSS registration facilitates the collection, declaration, and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. You won’t have to register in each state separately. The IOSS also makes the process easier for the buyer. With IOSS, they are only charged at the time of purchase and do not face any surprise fees when the goods are delivered.

Although the IOSS scheme is meant to facilitate the supply of goods within the EU, businesses based outside of the EU cannot register for the IOSS themselves. They must hire an intermediary to complete the IOSS registration on their behalf.

Eurora is EU’s first official VAT Intermediary and can represent US eCommerce sellers in all 27 European Member States.


How does Fiscal representation work with Eurora?

  • We take care of registering for the VAT Import One Stop Shop scheme (IOSS) within the same day.
  • Eurora helps you to take care of your administrative obligations: VAT calculation, reporting, and payments
  • We represent you before EU tax authorities
  • We guarantee 100% protection from any misuse and fraud for the holder of the IOSS number

To keep selling your goods successfully within the EU and improve your customer’s experience, sign up for IOSS and get onboarded within 3 days.


What about UK VAT?

The UK VAT regime is operated by HM Revenue and Customs (HMRC). As a non-UK company, you must declare your imported goods with HM Revenue & Customs (HMRC) and pay VAT for all goods valued at £135 or less. If you don’t collect VAT from your customers, you must pay it out of your own pocket.

To help businesses handle these regulations, Eurora has developed a VAT Agent Service. With it, we offer fiscal representation for the companies wishing to stay compliant with the UK rules. This VAT Agent Service is for all non-UK businesses who sell goods with a value £135 or less in the UK. It offers a wide range of benefits from VAT number registration to representation with the HMRC.

With Eurora, you’ll have a personal tax specialist. Our specialists will manage the VAT registration process in the UK. They will help you quickly get the UK VAT number that you need for compliance.

Eurora will also take care of all your tax return submissions and help you make all the required tax payments. Also, Eurora will represent you in front of the HMRC. We make sure you are 100% compliant with all the UK tax regulations.

Do not wait to take over the UK market, register for UK VAT!


Eurora’s regulatory compliance platform

The IOSS registration and UK VAT Agent service are only one of the many different services we offer companies handling cross-border trade. With global trade compliance getting more and more complicated every year, Eurora has automated and simplified every step of the supply chain. And Eurora offers online sellers, marketplaces, and logistics companies one platform for all their needs.

Eurora offers a wide range of services from HS Code Allocation, Electronic Declarations, Duty & Tax Calculations to Fiscal Representation. Being an AI-based platform, with these services and solutions, Eurora saves companies a lot of money and time. And allows companies to move faster, scale quicker, and grow their business.


If you want to bring your cross-border sales to the next level, get in touch with us!