Definition
IOSS (Import One-Stop Shop) is a European Union VAT scheme designed to simplify the declaration and payment of VAT on certain low-value goods sold to consumers in the EU and imported from outside the European Union.
The scheme applies to eligible consignments with an intrinsic value not exceeding EUR 150. When IOSS is used, the seller or electronic interface generally collects the VAT from the customer at the time of purchase and reports it through a monthly IOSS return.
This allows the goods to benefit from a simplified import process because the VAT has already been collected at the point of sale. It can also help avoid unexpected VAT charges for the customer when the goods arrive in the destination country.
Businesses established outside the EU may need to appoint an EU-based IOSS intermediary in order to use the scheme, depending on where the business is established and the applicable rules.
IOSS does not apply to all imports and does not replace other VAT obligations a business may have in Europe.
ASC Consulting supports international companies with IOSS registration, intermediary solutions, VAT compliance, and cross-border e-commerce obligations within the European Union.
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