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
OSS registrations are open in the Netherlands
Read this article

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.