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What is the European Union IOSS Tax System?

IOSS, which stands for Import One Stop Shop, is a portal where manufacturers, importing institutions and individuals can report and pay the Value Added Tax of the sales of the shipments imported to the European Union. The date entered into force on July 1, 2021. Before this date, goods up to 22 Euros were exempt from VAT. With the change made, VAT exemption has been eliminated and VAT payment will be made for every goods sent to the European Union. For the shipment of goods whose product price does not exceed 150 Euros, sellers can use the IOSS service to report and pay VAT. When IOSS is used, VAT is not paid when shipping products up to 150 Euros to the EU. VAT is paid by the buyer as part of the sale price of the product at the time of sale.

Companies and organizations that sell products to the end consumer, those who send products from countries outside the European Union to European Union Countries, and those who send products with a product amount less than 150 Euros should use IOSS.

Countries Included in the IOSS System: Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Every European Union Country has an IOSS registration system. Those enrolled in IOSS programs in countries are controlled by the local tax authorities of that state. After registering your company in the IOSS system, it is valid in all EU countries.

WHAT ARE THE ADVANTAGES OF IOSS?

  1. IOSS provides tracking and management of Value Added Taxes on all European Union submissions.
  2. With IOSS, you can quickly solve time-consuming and complex processes such as tax declaration and payment transactions.
  3. Logistics is provided directly to the country where the product is sold.
  4. The waiting time of the products at the customs has been shortened and the advantage of fast delivery has occurred.
  5. The end user does not have to deal with customs or pay VAT in order to get the product.
  6. It increases competitive advantage with Chinese vendors.
  • In order to use the IOSS system, you need to get an IOSS number. You can get this number from IOSS Service Provider intermediaries.

  • When selling on online Marketplaces such as ETSY, AMAZON, WALLMART, EBAY, we use the IOSS number of that Marketplace, for products under 150 €, it is directly deducted by the Marketplace, so that the buyer also pays VAT while making the purchase.
  • If your products are over 150€, you should still have an IOSS number, but we recommend that you send the product as DDP, that is, with all taxes paid, in order not to incur any cost to your customers at the customs, so your customer satisfaction will increase.
Seyda Nur Erdoğan
E-Commerce Specialist
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