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Sell to all 27 EU countries with just one monthly VAT return

Simplify EU VAT compliance and unlock access to an estimated $800-billion ecommerce market.
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Person holding a document with colorful charts and graphs, speaking on a phone in a modern office setting.

Sell to all 27 EU countries with just one monthly VAT return

Simplify EU VAT compliance and unlock access to an estimated $800-billion ecommerce market.

It's now easier than ever to sell into Europe

As the largest trading bloc in the world, pan-European online sales in 2020 are estimated to have been above $800 billion.

On July 1, 2021, the European Union (EU) introduced the Import One-Stop Shop (IOSS) scheme. This new system aims to simplify VAT registration requirements for selling into the EU, making it easier for businesses to grow, stay compliant, and protect their bottom line.

 

With Avalara's IOSS solution, you can:

 

  • Trade into all 27 EU member states with one VAT registration
  • Improve your cash flow by removing import VAT payments
  • Enhance customer experience with more reliable, transparent pricing at checkout
  • Gain quicker, easier, “green channel” customs clearance

Get started with IOSS in three easy steps

Step 1

Get registered

When you’re registered you’ll receive a unique IOSS identification number to put on all packages under €150 (roughly $176 as of August 2021) sent to the EU.

Step 2

Calculate VAT at checkout

To use IOSS, you must collect VAT at the point of sale and the invoice must be submitted with the package at customs.

Step 3

Step 3: File your returns

IOSS returns need to be filed on a monthly basis. U.S.-based companies are required to appoint an intermediary.

IOSS basics

IOSS is one of the most significant changes to the EU VAT system in a generation.

 

  • The scheme now applies to goods being sold into the EU with a total consignment value under €150
  • The EU removed the VAT exemption on imports valued at €22 and under
  • Businesses not using IOSS will have to pay import VAT on all goods being sold into the EU
Illustration of Avalara's IOSS (Import One-Stop Shop) solution displayed on a computer screen, surrounded by machinery and a document with a checkmark symbol.
Illustration of Avalara's IOSS (Import One-Stop Shop) solution displayed on a computer screen, surrounded by machinery and a document with a checkmark symbol.

IOSS basics

IOSS is one of the most significant changes to the EU VAT system in a generation.

 

  • The scheme now applies to goods being sold into the EU with a total consignment value under €150
  • The EU removed the VAT exemption on imports valued at €22 and under
  • Businesses not using IOSS will have to pay import VAT on all goods being sold into the EU

Frequently asked questions

It depends on the country you’re applying with and whether you’re using an intermediary. As of August 2021, Avalara has generally been receiving IOSS numbers within a week from when the completed documentation is submitted. However, demand is increasing so we expect there could be delays in the future.

Your IOSS number cannot be backdated and applied to shipments you’ve already made.

No. IOSS is an optional, simplified process that allows you to ship to all 27 EU member states through a single registration. You can still continue to ship through the old DAP and DDP models. However, if you choose to use IOSS, all transactions must be reported under IOSS going forward.

The answer depends on the model you plan to use. Historically, there have been two popular models but with the introduction of IOSS, there is now a third option.

  • Delivery At Place (DAP) — VAT is not charged at the time of purchase, but must be paid by the customer before they’re allowed to receive the goods.

  • Delivered Duty Paid (DDP) — VAT is applied at the point of purchase, but businesses aren’t required to show VAT charges.

  • Import One-Stop Shop (IOSS) — Businesses must apply VAT charges and show the amount collected to the customer at the point of sale.

Intermediaries, such as Avalara, are responsible for the filing and payment of VAT under this scheme. The intermediary is jointly and severally liable with the business registering for IOSS. The intermediary is required to pay the tax authority on behalf of the business.

An intermediary must be appointed when a business is established outside of the EU with no local presence in the EU, and the business is not otherwise based in a country with a tax mutual assistance agreement.

Yes. Each country has a slightly different method on how returned goods need to be reported but you can report this much like a usual return of goods on your IOSS returns.

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