What is the difference between OSS and IOSS? Should we register on both or just one for our e-commerce sales into the EU from the GB?

Q

What is the difference between OSS and IOSS? Should we register on both or just one for our e-commerce sales into the EU from the GB?

A

Both of these One-Stop-Shop schemes operate in the EU to assist companies to handle VAT when selling to consumers (B2C). The OSS (One-Stop-Shop) is designed for companies based in the EU selling goods to customers in other EU countries while the IOSS (Import-One-Stop-Shop) was introduced in July 2021 designed for non-EU companies who sell goods (and services) to customers in the EU where the value is less than €150.00. For goods of a higher value, standard VAT import rules apply.

Registering with IOSS isn’t mandatory but it does mean you benefit from a one-stop VAT number for all of the EU. There are some conditions and exceptions to IOSS which you need to review. If you do not use IOSS, the local parcel carrier will collect the VAT due from the customer before delivering the goods. This may result in additional costs such as clearance or handling charges. You may have to consider supplying under Delivered Duty Paid (DDP) terms and arranging with your parcel carrier to bill the charges back to you; be aware this will generally mean (if IOSS doesn’t apply or you decide not to use it) you will require an individual VAT registration number in each EU Member State you trade in.

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