Brexit
1 mins | May 3, 2021

What couriers need to know about the Import One Stop Shop

The Import One Stop Shop (IOSS) promises to simplify e-commerce imports into the EU. Businesses importing goods valued at under €150 for sale to customers in the EU can use the IOSS to streamline the VAT compliance process. 

What couriers need to know about the Import One Stop Shop

The Import One Stop Shop (IOSS) promises to simplify e-commerce imports into the EU. Businesses importing goods valued at under €150 for sale to customers in the EU can use the IOSS to streamline the VAT compliance process. 

The IOSS also makes online shopping simpler for e-commerce shoppers. Customers will be charged for VAT at the point of purchase and won’t be subject to surprise additional charges.

But what about the process of actually shipping the goods to customers? What are the responsibilities of courier companies and postal operators?

 

When the seller uses IOSS

When the seller uses the IOSS, much of the onus for compliance falls on the seller (or the online marketplace). The seller or OMP is required to provide the courier with the relevant IOSS number and other information required to clear customs.

EU guidance clarifies that the courier is not responsible for verifying the IOSS number (and would not be able to do so).

 

When the IOSS is not used

When the seller does not use the IOSS, VAT will be collected on low value goods in the same way VAT is currently collected on higher value goods. That is, there will be no distinction between goods valued under €150 and goods valued above €150.

The end customer in the EU will then pay VAT before receiving their goods.

 

A cash flow benefit for couriers

The good news is that a simplification process has been introduced for accounting for the VAT due. Using the simplification, the courier can pay the VAT collected from customers to authorities on a monthly basis. 

Authorities note that couriers will be required to manage additional bureaucracy as more packages will require customs clearance.  The simplification was therefore designed to compensate for the increased administrative burden, and will confer a cash flow benefit to the courier.

Postal operators and couriers may also charge customers an additional clearance fee.




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