UK VAT

IOSS Service

Move goods faster, reduce customs delays

Eurora's fully automated IOSS service offers a secure way to take care of VAT registration and reporting when shipping goods to the EU.

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Officially registered Fiscal Representative for IOSS in the EU

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To give out an IOSS number for a client in the EU

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Monthly new customers using Eurora's IOSS services

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Countries covered in our database of regulations, duty & tax rates and free trade agreements

How it works?

Fast IOSS registration with easy onboarding

Get your IOSS registration done in less than 3 working days. Send your Sales data reports through a secure and automated Self-Service Portal or manually by sending a simple CSV file.

Connect to Eurora’s automated service

Personalized solutions based on your company’s requirements to handle your cross-border e-commerce matters. Eurora represents you before the EU Tax Authorities.

Easy access to EU €700 billion ecommerce market

IOSS concerns all business-to-consumer (B2C) sales below €150. Your IOSS ID makes it possible to move goods through customs faster and automatically collect and pay EU VAT.

Fully automated service

Fiscal Representation in the EU

Automate your EU business

A fully automated Fiscal Representation service is in your hand. With easy and free API integration for calculating the correct EU VAT rates and submitting monthly sales reports. Easy API integration ensures a seamless performance that does not affect the efficiency of the checkout process and saves you from paying any extra if your IOSS number is misused.

Register for IOSS

Eurora database covers VAT and duty rates, de minimis thresholds, and active EU free trade agreements

No manual work with fast API calls via Eurora. With a responding time under 100 milliseconds and an accuracy of 96%

Fast IOSS registration

Fast, easy, and transparent IOSS onboarding

Get your IOSS number in one working day while a professional team of tax experts stays by your side and guides you step by step through a transparent IOSS registration process.

Register for IOSS

Full control over your VAT reports with access to secure and automated Self-Service Portal

Personal tax consultant to handle your declaration and tax matters

Fraud protection

Eurora IOSS

Grow your business while we protect you

Eurora handles all your risks by taking full responsibility and liability for IOSS related issues and makes sure you are not taxed when your IOSS number is misused. Our service guarantees 100% protection from any misuse and fraud for the holder of the IOSS number.

Eurora is the first official VAT Intermediary registered in the EU, representing you in all the 27 European Member States

Fully automated Fiscal Representation service protects you from paying any extra if your IOSS number is misused

Features

Fast, easy and automated onboarding

Fraud and IOSS number misuse protection

Fully automated Fiscal Representation service

Full representation before EU Tax Authorities

Benefits

Reach the whole EU market

Using the IOSS, you can sell to every EU country without having to register in each one separetely.

Improve customer experience

Your customers will get their goods faster and be more satisfied with your service thanks to full cost transparency.

Faster customs clearance

Using the IOSS allows for a quicker customs clearance process to move your goods faster.

Comprehensive records

All the VAT records are automatically logged as required by EU tax authorities. Sales records are kept for the 10 years.

Personal solution

Have free access to our skilled team of tax and customs experts who are eager to assist you with your requirements.

Improved cashflow

Improve your finances with monthly VAT declarations that allow you to declare and pay EU VAT only once per month.

Learn more

Register for IOSS

We're EU's first official VAT Intermediary for IOSS and can represent you in all 27 European Member States.

Register here

FAQ – IOSS

1. General Questions

Is IOSS registration mandatory?

No. IOSS registration is optional, and you can still sell goods to EU consumers without registering for IOSS or registering with an IOSS intermediary.

However, once a business registers for the scheme, it must conduct all business and sales to EU customers through the IOSS system. This means you cannot sell to customers in one EU member state under an IOSS number and another EU member state via a different VAT system.

If I am selling via marketplace, do I need my own IOSS number?

If you only make sales through marketplaces, you will not be required to have your own IOSS number because it is now the marketplace’s responsibility to report the transaction to the end consumer. You will make an exempt sale to the marketplace, and they will report the VAT.

Many marketplaces have taken the IOSS approach, they will provide you with their IOSS number and produce the invoices you need to provide to your carrier to ship the goods.

Can IOSS be used for B2B sales?

No, IOSS can only be used for B2C sales. 

If I use the IOSS scheme, is it still necessary to submit the import customs declaration?

Yes, it is still necessary to submit the customs declaration, but if the IOSS registration number is set out in the customs declaration, VAT is not payable upon the import in customs, instead it is collected at the moment of sale.

Are there any restrictions to using IOSS?

IOSS can’t be applied on the sale of goods with a net value exceeding EUR 150 (net value is without VAT). 

IOSS also does exclude goods subject to excise duties (of any value). These are usually things like alcohol and cigarettes.

If I have to keep my IOSS number secret, which number can I give to the post office or to the customs office to prove that I am registered?

The import of goods is exempt from VAT on condition that the valid IOSS number is presented in the customs declaration. The database of the IOSS numbers is not public, it is available only for customs office who automatically check the validity of the number. If the number set out in the customs declaration is valid, customs release the goods for free circulation without the payment of VAT. 

You should not transmit the IOSS VAT identification number to other parties than those involved in the declaration of the goods. You should not mention the IOSS number on the invoice or any other commercial documents.  It is advisable to make a nondisclosure agreement with a customs declarant and describe the obligations when using the IOSS VAT Identification number.

How to prevent the misuse of IOSS numbers?

There is no need to worry about misuse of the IOSS number – this is part of our service to make sure that customer won’t pay any extra VAT and we can always prove if there was a misuse.

Do I have to appoint an Intermediary?

Yes, non-EU companies must appoint VAT Intermediary. The Intermediary must be an EU established taxable person with VAT number. The Intermediary will register the seller to obtain an IOSS VAT identification number. Intermediary covers VAT reporting in all EU Member States under the IOSS Scheme.

2. Onboarding & Services

What is the process of signing up for the IOSS service?

You can sign up for IOSS at our webpage or send us an email on sales@eurora.com.

Which details should I provide?

To apply for an IOSS number, some basic details will be required including company´s registration and tax number, website address. Also the contact number and e-mail address of the director and contact person are necessary.

The required documents are Business Registration Certificate or Certificate of Incorporation, Director’s ID document and last 6 months’ sales data to EU (in case there have been sales).

Are there any pre-requisites to using Eurora IOSS service?

Eurora is ready to provide services to every customer who is ready for IOSS scheme. What is important to keep in mind is that you must start calculating VAT at the moment of sales. If you need help with that we can offer a special tool for calculating the correct VAT rates in every destination country.

How to register to IOSS? How is the process? How long does it take to complete the registration?

  1. For obtaining IOSS number we will send to customer registration form and ask some documentation.
  2. Check of documents and KYC checks will take 1-2 working days.
  3. After receiving the documents, the agreement for IOSS services will be provided to customer.
  4. We will issue prepayment invoice for IOSS registration and guarantee notice.
  5. After receiving the payments, we will obtain IOSS VAT number. This will take 1 working day.
  6. VAT reporting will be on monthly basis starting from the month the customer registered for IOSS.
  7. To provide to us monthly sales data customer can choose: connection via Eurora API (machine-to-machine via endpoint); enter data manually through Eurora Self-Service Portal; upload standard file in Self-Service Portal.
  8. For monthly services we will issue an invoice in the beginning of the month.

What do the fees include?

Registration fee includes: customer documentation and information check against the AML rules, preparing the documentation for Tax Authorities for IOSS registration, customer consulting, registration for IOSS, representation before Tax Authorities, preparing access to Self Service Portal and/or Eurora API.

Monthly fee includes: VAT return preparation and submission, VAT data verification, VAT payment transfer, use of Self Service Portal for monthly obligations, record keeping, data archiving, consultation, representation before Tax Authorities.

How does the monthly process look like?

VAT reporting for IOSS sales is on monthly basis starting from the registration month. We expect sales data from our customers by the 5th of every month, at the latest. Every customer has dedicated Tax Consultant who will clarify this process.

Will you help me deal with customs duties?

In case of IOSS, there is VAT only, payable during purchase, no customs duties. But there is still needed to file customs declarations. We help to file customs declarations.

Eurora suggests its IOSS customers to improve their services with Customs Clearance Service by Alldeclare solution. Alldeclare acts as an indirect representative of consignee in means of UCC. We can create customs declaration ´H7´ dataset via XML to customs authorities as soon as the data is received from IOSS scheme user and goods have arrived the EU. Currently customs services are available in Estonia and soon in Netherlands and Belgium. Customs clearance takes place in member state where goods arrive to EU.

3. Questions about 'Know Your Customer' (KYC)

What is KYC procedure and what documents are required for that?

EURORA FR Services OÜ is required to undertake KYC and identity checks on potential customers to make sure it is permitted to provide its services. For that we ask to provide some information to us.

To onboard you as a new customer, we will be requiring documents as Business Registration Certificate or Certificate of Incorporation and Director’s ID document.

Who will need to provide identification?

If you operate as a sole trader or sole proprietor (i.e. your business is in your own name) only you will need to provide an identity document. If you operate as a company (i.e. a separate legal entity), we will need to validate the identity of the person signing the agreement.

What forms of ID are needed to onboard me as a customer of Eurora?

To onboard you as a new customer, we will need to check one of the following identification documents: passport, national identity card or driving license, permanent residence card is also acceptable.

What are the rules for expiration and validity of documents?

Personal identification documents should be valid and should not expire in the next six months. Articles of Association, Business registration certificate/ certificate of incorporation, and annual return should not be older than 1 year. More information can be obtained from Tax Consultant.

What is the purpose of proving my identity?

Tax Intermediary Services are governed under local AML Laws and proof of identity is needed for compliance with the legal and regulatory requirements.

What document should I provide if a director is changed?

Form ND2A is required from the Chinese customers to prove the change of any director or extract from the business register. More information can be obtained from Tax Consultant.

Can I appoint a representative?

Yes, you can appoint a representative, who is having legal basis to represent you. That means you are having a legal agreement with the representative to represent you for the VAT intermediary services. 

4. Tax Questions

If I use the IOSS scheme, do I have to calculate the VAT only for the goods I sell?

You must calculate, collect and pay VAT for the goods and for all the extra costs associated with the sale (transport, insurance etc.) if these costs aren’t already included in the price of the goods.

What rate of VAT will apply to my sales?

This will depend on the type of goods sold and the country in which the customer is based. In the EU the standard rate currently ranges between 17% and 27%. However, a reduced rate may also be applicable for certain goods, which could range from 3 % to 18% in the EU. 

We can offer a special tool- Duty&Tax calculation engine- for calculating correct VAT rates, as there are 27 different Member States and VAT rates vary per state and per goods.

How do I pay the taxes using the IOSS scheme?

A customer using IOSS scheme should ensure the following in respect of VAT:

  • Collect the VAT from the buyer on supplies of all goods transported to the EU in consignments not exceeding EUR 150.
  • Provide monthly sales data to Intermediary for submitting monthly IOSS return for all the supplies of goods sold to customers across the entire EU.
  • The Intermediary will submit the IOSS return monthly, by the end of the following month of supply.
  • The customer will pay VAT payable according to the IOSS return to the Intermediary who will transfer it to the Tax Authority by the same date the IOSS return is submitted.

What is intrinsic value?

The price of the goods themselves when sold for export to the EU, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice, and any other taxes and charges.

To which transactions IOSS applies? How is VAT calculated?

IOSS applies when the net value (intrinsic value) of the goods does not exceed EUR 150. Net value is without VAT. When you use IOSS, then the VAT is paid by your customer at the moment of sale to you.

Example 1: 

Net value of the goods (includes transport price, it means not indicated separately on the order): EUR 140

VAT (20%): EUR 28

Total order amount (the sum the customer pays to you): EUR 168

In this example the net value of the goods is EUR 140. This means that IOSS can be used.

If the transport costs are indicated separately, then transport costs are excluded from the goods value. VAT is paid by your customer at the moment of sale to you.

Example 2:

Net value of the goods (doesn´t include transport): EUR 140

Transport price: EUR 20

VAT (20%): EUR 32

Total order amount (the sum the customer pays to you): EUR 192

In this example the net value of goods is EUR 140. If we are talking about IOSS, we are only talking about net value of goods. In this case IOSS can be used.

If the net value is over EUR 150, then your customer has to pay VAT at destination country to the customs.

Example 3:

Net value of the goods (includes transport price): EUR 165

Total order amount (the sum the customer pays to you): EUR 165

In this example the net value is EUR 165. In this case IOSS cannot be used. This means that your customer has to pay you EUR 165. VAT (20%) EUR 33 will be paid by your customer at the destination country to the customs.

However, if you do charge VAT from the customer, then the customer will pay VAT at the destination country again. If the customer understands that he has been charged VAT twice, he can claim the VAT back from you.

If I sell low value goods to customers in the EU via my own online shop and via an electronic interface that is IOSS registered, then what do I need to do?

You should keep clear evidence of the goods sold via your online shop and the goods sold via the electronic interface. 

If you register in the IOSS for the sales made via your online shop, you should provide your own IOSS number to the person that is responsible for the declaration of the goods for release into free circulation in the EU (e.g. postal operator, express carrier, customs agent) for the goods sold via your own website.

For the goods sold via the electronic interface, you should provide to the person that is responsible for the declaration of the goods for release into free circulation in the EU the IOSS VAT identification number of the electronic interface, since you organize the transport. The electronic interface is obliged to charge and collect the VAT from the customer and to declare and pay VAT to the tax authorities.

If you do not register in the IOSS for the sales via your online shop, you cannot use the IOSS number of the electronic interface for the sales made via your own website. In that case, the VAT for the goods sold via your online shop will be collected from the customer at the moment of importation in the EU.

What is a single consignment?

Goods packed together and dispatched simultaneously by the same consignor (e.g. supplier, underlying supplier or possibly electronic interface acting as deemed supplier) to the same consignee (e.g the customer in EU) and covered by the same transport contract (e.g airway bill) shall be considered as a single consignment. 

Consequently, goods dispatched by the same consignor to the same consignee that were ordered and shipped separately, even if arriving on the same day but as separate parcels to the postal operator or the express carrier of destination, should be considered as separate consignments, unless there is a reasonable suspicion that the consignment was split intentionally in order to avoid the payment of customs duty. In the same manner, goods ordered separately by the same person, but dispatched together, would be considered as a single consignment.

What happens if a customer makes multiple orders, each of them not exceeding EUR 150, with the same supplier (via own webshop or electronic interface)? Subsequently all goods ordered are packed and dispatched together in a single consignment exceeding EUR 150.

Each order is considered a separate supply. As each separate order does not exceed EUR 150 at the moment sale, the VAT should be charged by the IOSS registered supplier. 

When such multiple orders are packed and dispatched together, they will be considered as a single consignment. 

If suppliers know that the goods of multiple orders will be dispatched or transported in a single consignment exceeding EUR 150, they should take a cautious approach and not declare the respective consignment under in the IOSS. The supplier should reimburse the VAT collected at the moment of sale to the customer, indicating that VAT will have to be paid upon importation into the EU. The supplier should keep evidence that the respective orders were dispatched in one consignment exceeding EUR 150.

If suppliers send the respective orders in one single consignment exceeding EUR 150 in value and still indicate the IOSS number, they should be aware that customs will levy VAT upon importation on the entire value of the consignment (including any customs duty) and will disregard the IOSS number. The supplier will need to reimburse the VAT paid under IOSS to the customer based on the proof of payment at EU customs. 

The supplier will be able to correct their IOSS VAT return (if already submitted) in order to reflect that the VAT is no longer due under the IOSS. The supplier should also keep in their records this proof of payment of VAT by the consumer.

What happens for IOSS purposes if a single order from one supplier or underlying supplier exceeding EUR 150 is split (transported to customer) into multiple consignments not exceeding EUR 150?

When purchasing several goods in a single transaction (e.g. order) this would be considered as a single supply for VAT purposes. The expectation is that the goods are dispatched/transported in a single consignment. Since the intrinsic value of the transaction exceeds EUR 150 at the time of supply, the IOSS cannot be used by the supplier or electronic interface. That means VAT should not be charged at the moment of sale and this transaction should not be reported in the IOSS VAT return, even if the goods are dispatched in separate consignments.

A customer purchases in the same order a good of 25 EUR and an excise good (e.g bottle of wine) of EUR 30 from the same supplier. The goods will be dispatched in a single consignment or in separate consignments. Can IOSS be applied on this order?

The sale of the two goods in one order constitutes one single supply. Since excise goods are not covered by IOSS, the entire order will not be subject to VAT at the moment of purchase. The fact that the value of the order does not exceed EUR 150 is not relevant. VAT will be paid upon importation.

If a completed order gets a part refund to the buyer, how to deal with the VAT refund from EU Tax Authority?

If goods are returned to the supplier and you have returned the money to the buyer, then you just send this information to us on monthly basis and corrections will be done in the IOSS VAT return.

The IOSS VAT return is divided to two parts:

  • the first part is the current month’s sales
  • the second part is corrections from previous periods. If the data reported on an IOSS return need to be changed, this is done on the next IOSS return and not by correcting the earlier return. Corrections can be made up to a maximum of three years from the day in which the original declaration had to be submitted.

If the IOSS VAT return correction leads to an overpayment for a Member State then the Member State shall return the overpaid amount.

What happens if the IOSS VAT identification number mentioned in the import declaration is not valid or is not provided at all in the import declaration?

When the IOSS number mentioned in a customs declaration is not valid or not provided at all, then the import scheme cannot be used and the VAT exemption upon importation will not be granted. That means VAT will be levied upon importation. 

The responsibility for providing a valid IOSS number lies with the supplier or the electronic interface.

What will the customs request in case of replacement of goods?

There should be a special field on the import declaration “Free replacement of returned goods”. Import declarations differ depending on the country, but this field is quite common for all of them. There should be the same value of the new item and information that it is a replacement order on the new invoice + reference to the initial invoice also. After filling it in, there shouldn’t be any problems. Also, it`s possible customs will ask the number of initial customs declaration.

What happens if the VAT is not collected by the IOSS registered supplier?

If the VAT is not collected by the IOSS registered supplier or electronic interface and VAT becomes due upon importation into the EU in the Member State of final destination, that Member State can decide freely on the person liable to pay the import VAT (either the customer or the supplier or the electronic interface).

What is the value amount I have to write on the parcel?

The value on the parcel should be the same amount that your customer has paid you for the goods (if there have been additional costs, e.g. transport, insurance etc. these are shown at separate fields at the parcel documentation also). 

Can I send gifts to my customers using IOSS scheme?

According to the VAT legislation IOSS number can be used only for sales which means you can`t use IOSS number at customs declarations when sending gifts and you don`t have to declare gifts on the IOSS VAT declaration. 

To send gifts there is solution to use some logistical company or postal office for delivery clause DDP which means everything is paid by the seller and the buyer will receive goods without any complication.

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