E-commerce

Major changes for importers of low-value goods into the EU

By:
Aiki Kuldkepp,
Robert-Jan Brethouwer
16 Apr 20214 min read
As of 1 July 2021, all imports will be subject to VAT unless the Import One Stop Shop (IOSS) is used. The IOSS is a new special scheme for reporting sales of low value goods imported from outside the EU. Under the IOSS, the importer can charge VAT at the Point of Sale (POS) to the customer and declare and pay this VAT via a monthly IOSS return.
Contents

The IOSS allows for a quick release of imported goods (‘green channel’ fast customs clearance for consignments not exceeding EUR 150) and also for a release of goods destined for customers located in other EU Member States than that of the entry of the goods in the EU.

If IOSS is not used then the transit procedure and a release in the EU Member State (MS) of the final destination is required if the goods enter the EU in a MS other than that of the final destination of the goods.

Non-EU businesses can only register directly if they are established in a country that the EU has a VAT mutual assistance agreement in place with and the goods are supplied from that country to the EU. In all other cases, a non-EU business must register for the IOSS indirectly through appointment of an intermediary/fiscal respresentative.

Any occasional input VAT cannot be deducted via IOSS return and should be claimed through the (EU online) VAT refund system for non-established taxpayers.

Where can the business register for IOSS?

EU businesses can register for the IOSS in their own MS. Non-EU businesses requiring an appointment of an intermediary should register in the MS where their intermediary has established its business.

OSS registrations are open in the Netherlands
Read this article
OSS registrations are open in the Netherlands

How can you register for IOSS?

  • If you choose to make use of IOSS then you need to register for it.
  • Check which administrative steps (such as appointing an intermediary for non-EU businesses) are required.

Grant Thornton’s international indirect tax team and digital advisory team can assist you in your VAT / customs matters, compliance and update of your systems and processes.

Please contact us if you would like to discuss your options

Grant Thornton Netherlands has tools and software which can make your VAT compliance and (I)OSS reporting simple.

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Authors
  • A. Kuldkepp Grant Thornton Nederland
    Aiki Kuldkepp Aiki Kuldkepp, Senior manager VAT, has a wealth of experience advising on cross-border trade and international transactions / supply chains, managing Dutch and pan-EU VAT compliance as well as VAT automation. View Profile
  • Robert-Jan Brethouwer
    Robert-Jan Brethouwer With more than 10 years' experience working in indirect tax Robert-Jan enjoys advising businesses on all matters around Dutch and international indirect tax. His work involves providing consulting and advisory services on the more complicated aspects of large and complex businesses. He works across all sectors with extensive experience in the multi-level-marketing, airline and health care sectors. He is delighted to be one of the facilitators in the International Indirect Tax Training program Grant Thornton offers to their junior and mediors and to be part of Grant Thornton International's EMEA indirect tax committee. This role enables him to work with member firms and colleagues across the world, share knowledge and best practice, as well as train and mentor our people. View Profile