Import One Stop Shop (“IOSS”)

The new streamlined way to sell low value goods into Europe.

What is IOSS?

Import One Stop Shop (IOSS) is the new regime for consignments* of a value less than €150 being sent B2C into the EU from 1st July 2021.

This replaces Low Value Consignment relief across the EU and makes VAT apply to all such B2C movements under a simplified regime whereby;

  • No VAT or duty is due on import
  • VAT is due only on sale according to the nature of the goods (at standard or reduced rates)
  • Merchants appoint an IOSS Intermediary to represent them before the tax authorities, submit IOSS Returns and process VAT Payments
  • Merchants obtain their own unique IOSS number (which is linked to their chosen Intermediary)
  • Merchants can trade freely across all EU member states with a single IOSS registration and a single monthly IOSS return

IOSS is not mandatory but is designed to simplify selling to Europe and make things as efficient as possible. If you do not register for IOSS you can either:

  • Have your customers pay the VAT due themselves when they take delivery of your item(s). This often comes with additional courier costs for the seller and significantly impacts client experience and repeat business.
  • Register for VAT locally in Europe and obtain a VAT number in each country you sell into, paying duty and VAT on import and charging VAT to the customer subject to the normal This approach creates significantly increased cost, compliance and reporting responsibilities across multiple countries.

The EU hopes IOSS is an attractive alternative to the above options and will streamline trade with the bloc. With your IOSS registration you can access the whole of the  EU and you only need to submit one VAT return together with a single VAT payment each month. Your IOSS return and associated payment must be submitted to and processed by your chosen IOSS Intermediary.

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IOSS

How can Desucla help?

We are one of the largest Fiscal Intermediary companies in the world and work with the largest global accounting firms, online marketplaces and logistics companies like FedEx, DHL, UPS, LaPost and The Royal Mail.

We are a registered IOSS Intermediary and can represent you in the European IOSS scheme.

Through a single online registration with Desucla, you get your own IOSS number and access to our online platform where you can upload monthly VAT returns, manage your VAT payments and store/view all relevant documents and historical data.

How much does it cost?

We have a low-cost tiered approach to pricing linked to how many shipments you expect to make to Europe under the IOSS scheme. You can choose to pay for the Desucla service in either EUR, GBP or USD as outlined below;

GBP Pricing:

Price Tier No. of IOSS shipments per annum One-off Registration Fee Annual Up-front Fee Monthly VAT payment Fee
Tier 1 20,000+ £175 £1,945 £20
Tier 2 12,500 – 19,999 £65 £1,500 £10
Tier 3 7,500 – 12,499 £40 £1,050 £5
Tier 4 2,500 – 7,499 £20 £745 £5
Tier 5 0 – 2,499 £12 £475 £5

USD Pricing:

Price Tier No. of IOSS shipments per annum One-off Registration Fee Annual Up-front Fee Monthly VAT payment Fee
Tier 1 20,000+ $230 $2,650 $20
Tier 2 12,500 – 19,999 $85 $2,050 $10
Tier 3 7,500 – 12,499 $60 $1,500 $5
Tier 4 2,500 – 7,499 $30 $1,050 $5
Tier 5 0 – 2,499 $20 $650 $5

EUR Pricing:

Price Tier No. of IOSS shipments per annum One-off Registration Fee Annual Up-front Fee Monthly VAT payment Fee
Tier 1 20,000+ € 200 € 2,250 € 20
Tier 2 12,500 – 19,999 € 75 € 1,750 € 10
Tier 3 7,500 – 12,499 € 50 € 1,250 € 5
Tier 4 2,500 – 7,499 € 25 € 875 € 5
Tier 5 0 – 2,499 € 15 € 550 € 5

When it comes to paying your VAT, the Desucla service even allows you to pay in the currency of your choice, so you don’t have to keep aside Euros or exchange money with your bank at poor exchange rates each month.

How does it work?

  • Click here to register for the Desucla IOSS service and select your pricing tier. It takes about 10 minutes to complete the application and there are two forms to download, sign and upload to the platform.
  • Desucla will then process your application with the relevant tax authorities, and you will be notified when your application is submitted.
  • Once your application has been accepted you will be notified and your unique IOSS number will be available to view in the Desucla online platform. Speed of registration is subject to EU Tax office response times, but Desucla can typically complete applications in 4 working days.
  • Once you are registered for IOSS and have your IOSS number you should use it on all relevant consignments <Euro 150 to the European Union including Northern Ireland which remains part of the EU for IOSS. Your shipping company will guide you as to how they want your IOSS number to be recorded with the package you are sending. You should keep your IOSS number secure from others as it is solely for your business use.
  • By the 15th of the month following the monthly VAT period you need to login to the Desucla platform, tell us how much VAT you owe and follow the instructions to make any outstanding payment. The VAT due is calculated in Euros but you are free to pay Desucla in the currency of your choice.
  • By the end of the month Desucla will process your VAT payment and you will be updated once payment is made.
  • All VAT Returns and Payment statements are available for you to view in Desucla online at any time.

To register just click here & make sure you select the IOSS product when prompted. If you have further questions please visit our FAQ section.