Are you planning to do e-export to European Union’s countries? You should prepare your company valid for EU countries’ VAT rules. You can find all the details like the changing IOSS system on 1 July 2021, the advantages of the IOSS system, taking IOSS numbers and European Union countries VAT rates.
What is IOSS?
IOSS (Import One Stop Shop) is the electronic portal through which sellers exporting to European Union member states report and pay VAT on their sales. VAT payments made in the IOSS system are transferred directly to the relevant country.
What did change in European Union VAT law?
Before July 1, 2021, VAT was not payable on shipments valued at less than 22 euros. According to the updated law, the VAT exemption was abolished.
What are the advantages of IOSS system?
IOSS system offers various advantages for a flawless shopping experience to sellers and customers.
Advantages of IOSS system for sellers:
- Through IOSS system VAT return can be given, paid or received. Thus you handle with less bureaucratic procedures.
- Your custom transactions will be completed faster when you export to EU member countries.
- Instead of make an agreement with customs entry companies, from one point you can handle your customs operations.
- You can easily take the VAT return of returned goods.
- Your customers’ brand loyalty will increase who experience transparent and easy shopping.
Advantages of IOSS system for customers:
- Customers do not have to pay customs duties and additional taxes. They pay safely at the time of purchase with VAT-included prices.
- Shopping will be completed smooth and easily. Login to another platform for VAT or tariffs fee will not be required.
- Due to seller’s registration in IOSS, customs transactions move fastly and shipment will be done faster.
Who should take IOSS number?
Marketplaces and e-commerce sellers make use of advantages by registering with the IOSS system.
Marketplaces:
Global marketplaces such as Amazon, Aliexpress, eBay, Wish, etc., which are responsible for the VAT payments of their sellers, have to register with IOSS
Sellers:
Sellers who have a store on marketplaces like Amazon, Etsy, eBay can sell with the platform’s IOSS number. If you sell in marketplaces, you do not need to register with the IOSS system. Sellers who sell through their own e-commerce site are required to register with IOSS.
How can IOSS number be taken?
Marketplaces share their IOSS numbers. If you sell on your own e-commerce website you can work with an intermediary firm to register IOSS. In order to details, you can visit European Commision’ s website.
To take IOSS number you must fulfill the conditions below:
- You should sell on an electronic platform.
- Your sales amount must be 150 € and lower.
- You must sell from countries outside the European Union.
- You should sell products subject to private consumption.
What are the VAT rates of European Union member nations?
VAT rates vary from 18% and 27% in EU member nations. Here VAT rates that is applied in European Union:
| Country | VAT Rates |
| Germany | 19% |
| Austria | 20% |
| Belgium | 21% |
| Bulgaria | 20% |
| Czechia | 21% |
| Denmark | 25% |
| Estonia | 20% |
| Finland | 24% |
| France | 20% |
| Croatia | 25% |
| Netherlands | 21% |
| Ireland | 21% |
| Spain | 21% |
| Sweden | 25% |
| Italy | 22% |
| Cyprus | 19% |
| Latvia | 21% |
| Lithuania | 21% |
| Luxemburg | 17% |
| Malta | 18% |
| Hungry | 27% |
| Poland | 23% |
| Portuguese
The Azores
Madeira Island |
%23
%18
%22 |
| Romania | 19% |
| Slovakia | 20% |
| Slovenia | 22% |
| Greece | 24% |
Manage e-export processes easily with fiCommerce !
End-to-end solution partner fiCommerce is with your brand for abroad operations. You can take detailed information from our e-export and global e-commerce solutions page, contact us with fill the contact form.
