IOSS allows you to sell to the whole of the EU with a single IOSS VAT Registration. Once registered through an approved intermediary you receive your own unique IOSS number, and you only need to file one VAT return a month and make one VAT payment for all your EU sales.

IOSS replaces Low Value Consignment relief across the EU and, from 1st July 2021, makes VAT apply to all such B2C movements under a simplified regime whereby;

  • No VAT or duty is due on import
  • VAT is due only on sale according to the nature of the goods (at standard or reduced rates)
  • Merchants appoint a IOSS Intermediary to represent them before   the tax authorities, submit VAT Returns and process VAT payments
  • Merchants obtain their own unique IOSS number (which is linked to their chosen intermediary)
  • Merchants can trade freely across all EU member states with a single registration and a single monthly VAT return

A consignment is the price of the goods themselves when they are purchased by an EU customer. This value excludes transport and insurance costs unless these are included in the price of the goods, rather than being displayed separately. Any other charges and taxes are also excluded from the value calculation. Should this intrinsic value of goods ordered by an EU consumer go over EUR150, this consignment will no longer be eligible for IOSS and instead, VAT will be due upon importation.

You can sign up directly from our website. Just select the IOSS product that is most suitable for you and enter the information requested. You will then need to download and sign one or two forms (depending on country of registration) and re-upload them to our platform. Once received we will process your IOSS application and will share your Merchant IOSS number when we receive it back from the authorities.

The Desucla application takes just 10 minutes but the time for tax authorities to process your application can vary and depends on their workload. We aim to get IOSS numbers back to merchants within 4 working days but it can take up to 3 weeks at busy times for certain tax authorities. We keep you informed and update you by e-mail at every step.

IOSS is not mandatory but is designed to simplify selling to Europe and make things as efficient as possible. If you do not register for IOSS you can either:

  1. Have your customers pay the VAT due themselves when they take delivery of your item(s). This often comes with additional courier costs for the seller and significantly impacts client experience and repeat business.
  2. Register for VAT locally in Europe and obtain a VAT number in each country you sell into, paying duty and VAT on import and charging VAT to the customer subject to the normal rules. This approach creates significantly increased cost, compliance and reporting responsibilities across multiple countries.

The EU hopes IOSS is an attractive alternative to the above options and will streamline trade with the bloc. With your IOSS registration you can access the whole of the  EU and you only need to submit one VAT return each month together with a single VAT payment. Your IOSS return and associated payment must be submitted to and processed by your chosen IOSS Intermediary.

The primary IOSS registration country for MyVAT is Ireland as they process applications quickly for our clients. Our primary country is always under review, and we will generally promote the most efficient location at a given time. It makes no different to the merchant where they are ultimately registered for IOSS as all countries follow the same EU-wide process, but some countries have better systems to process high volumes of clients.

You or your compliance provider will need to upload your IOSS VAT Returns to the Desucla Platform by the 15th or the month following the VAT Return period. You will then need to make payment of the VAT owed to Desucla and cleared EUR funds need to be with Desucla at least 3 working days before month end.

No. You have to use a registered and authorised IOSS intermediary like Desucla to register for IOSS and get your unique IOSS number. Your IOSS number is linked to the intermediary so if you change intermediary you will need to apply for a new IOSS number.

Yes. You can change IOSS intermediary, but it will mean you need to re-apply to the IOSS scheme and obtain a new IOSS number linked to your new intermediary. If you cease to work with a particular intermediary, then your IOSS number with them will be cancelled.

IOSS VAT Returns are due monthly. Desucla requires your final IOSS VAT Return data to be uploaded to our system by the 15th of the month following the VAT period. Payment is then due and must arrive in cleared EUR funds with Desucla no later than three working days before month end.

Payments need to be received by Desucla in cleared EUR funds at least 3 working days before the end of the month following the VAT Return period.

Your IOSS VAT Return is calculated and submitted in Euros but Desucla supports the VAT settlement in EUR, GBP, USD, AUD, CAD, JPY, CNH, SGD or HKD.

If you are using the monthly pay as you go Desucla IOSS service then you will need to pay your IOSS VAT in your home currency. This ensures we receive the full amount due and mitigates the risks of interbank charges which are sometimes applied to international payments.

If we do not support collection in your home currency then you can choose your preferred settlement currency from our available options.

If you are using a Desucla annual subscription IOSS product, you can choose your settlement currency for each VAT payment from the available options.

Cleared EUR funds need to be with Desucla at least 3 working days before the end of the month following the VAT Return period. Funds received after this date risk being paid late and penalties and fees will apply from the relevant EU member states. Desucla has a zero tolerance to late or non-payment and your IOSS number risks being cancelled if you do not pay your VAT on time.

IOSS VAT Returns are due monthly. Desucla requires your final IOSS VAT Return data to be entered into our system by the 15th of the month following the VAT period. We will make every effort to submit any returns provided to us after that date as quickly as possible, but we cannot guarantee timely submission if you are late to pass us the data and penalties may be incurred from tax authorities.

No. As your IOSS intermediary your VAT Payments under the IOSS scheme must come through Desucla. Once your IOSS VAT Return has been uploaded to the Desucla portal you will be given instructions on how to make payment.

No. As your IOSS intermediary your VAT return submissions under the IOSS scheme have to come through Desucla. These can be uploaded to our online portal each month by the merchant themselves or their chosen compliance provider.

Yes. If you stop selling to the EU and no longer need an IOSS number you can request to cancel your Desucla subscription in the platform. Cancellation of your subscription will cancel your IOSS number. Please note that we need at least one full calendar months’ notice to cancel. For example, if you requested to cancel on 15th October your subscription would end on 31st November. Your last Desucla subscription payment would be in November. Your last IOSS return would be your November return and you last IOSS VAT payment would be due in December (for your November sales).

Even if you sell nothing in a month you still need to tell us as we need to submit a ‘NIL’ return on your behalf. It’s very easy to tell us to have sold nothing – either by clicking the NIL return link in our monthly IOSS reminder e-mail or by pressing the Nil return button in the platform against the relevant period.

You do need to let your shipper know your IOSS number and normally the IOSS number needs to be included in the relevant section on postage labels. Every shipper has slightly different processes and requirements so you should speak directly with your logistics provider for specific information.

IOSS is still a relatively new programme and some smaller logistics companies are behind on updating systems and labelling. You should speak to your logistics provider as they may still be able to support. Alternatively, you should choose a provider that does support IOSS as it will be far more efficient for your business.

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