How does the IOSS import regime work?
The following steps have to be taken into account
1 Get registered When you’re registered you’ll receive a unique IOSS identification number to put on all packages under €150 sent to the EU.
2 Ordering goods Calculate VAT at checkout of internet shop. (To use IOSS you need to calculate and charge VAT at point of sale.) The invoice needs to be submitted with the goods package at customs.
3 Acceptance of payment incl. VAT IOSS returns need to be filed on a monthly basis. Depending on the country your business is based in, you may need an Intermediary.
4 Shipping to EU Shipping consists of the physical shipping of the goods and the electronic data transmission of commercial invoice and packing list.
5 Import customs declaration The customs declartion is set up on data contained in the commercial invoice and the Airway Bill or Packing list.
6 Customs audit It is evaluated wether the import complies with EU legislation and what are the payments to be made.
7 Delivery to destination After the customs procedure the goods are prepared for the delivery to the final client.
8 Monthly tax declaration Monthly IOSS VAT tax declaration & payment of VAT to tax authorities
9 Monthly listing of imports by IOSS VAT ID nr. An additional listing is necessary where all the imports by IOSS VAT ID nr. are reported.