IOSS portal offers businesses help with EU VAT changes

Global shipping and logistics company UPS and tax consultant PwC have joined forces to help businesses outside the European Union comply with the new VAT requirements on imports into the EU. They have teamed up to provide access to the Import One Stop Shop (IOSS): a portal that simplifies the declaration and payment of VAT for e-commerce sales of goods up to a value of €150.

On 1 July this year, new VAT rules came into force for e-commerce sales outside the European Union. The VAT exemption on goods imported into the EU up to a value of €22 has been abolished. Furthermore, a special scheme has been introduced for distance sales of low-value goods imported from third countries or territories outside the EU.

Better customer experience

The IOSS portal significantly simplifies the declaration and payment of VAT for e-commerce sales of goods imported into the EU with a value of up to €150. The IOSS improves the customer experience by making any additional costs clear at the time of online purchase and charging the buyer for them immediately. This avoids unexpected costs or delays in customs clearance during the delivery process.

E-commerce businesses provide an IOSS VAT identification number to the carrier, who then submits it to the customs authorities. This avoids the authorities assessing the goods for VAT when they arrive in the EU. Non-EU companies or those in a country without a mutual aid agreement for VAT will need to appoint an intermediary to use the portal.

Intermediary and compliance services

UPS has partnered up with tax consultant PwC to offer intermediary and compliance services to eligible customers at a discounted rate. As part of this agreement, UPS customers will receive assistance with IOSS registration and IOSS returns, monthly information on VAT payments and relevant updates that may affect their business.

“Supporting our customers in over 220 countries and territories around the globe and empowering them to compete at an international level – while offering an outstanding customer experience – is key for us,” states Stuart Lund, Vice President International Package Customs Brokerage at UPS. “We encourage businesses outside the EU to make use of this service so they can continue to offer a transparent and seamless buying experience to their EU-based customers.”