The Import One Stop Shop, short IOSS, is a system designed to help businesses in non-EU countries, including the UK, streamline the process of declaring and paying VAT on goods sold to customers in the EU. By registering for VAT in just one EU member state, businesses can simplify their operations and avoid the need for multiple VAT registrations.
So to put it in simple terms, the IOSS number is used during customs clearance to show that VAT has already been settled at the point of sale, allowing goods to be delivered directly to the buyer without extra VAT charges or delays.
What is an IOSS Number?
The IOSS number is a 12-digit identifier used for VAT purposes when shipping goods from non-EU countries to the EU. It always starts with 'IM' followed by 10 digits with no spaces (e.g., IM0123456789).
Key Benefits of IOSS
- Simplified VAT Registration: Register for VAT in one EU state instead of multiple.
- Efficient VAT Declaration: Easily declare and pay VAT for goods sold to the EU.
Overall, using the IOSS scheme streamlines customs clearance, reduces administrative burdens for businesses and most importantly, improves customer experience by avoiding unexpected VAT charges.
Setting Up IOSS with byrd
During the onboarding process, you can provide your IOSS number to byrd. We can then make sure that this number is visible on the pro-forma invoice which is included in the shipment. Please keep in mind that the IOSS number is confidential and should not be shared unnecessarily to avoid any misuse.
When to Use IOSS
The IOSS number should be used under specific conditions:
- Value Limit: Products must not exceed a value of €150 or £135.
- Exclusions: IOSS does not cover goods subject to excise duties such as alcohol and cigarettes.
- IOSS applies to the EU member states of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden
- IOSS cannot be used for shipments to: Mount Athos, Canary Islands, Faroe Islands, Åland Islands, Greenland, Channel Islands, Campione d'Italia, Italian waters of Lake Lugano, Island of Heligoland, territory of Büsingen, Ceuta, Melilla, Livigno, Antilles, San Marino, Gibraltar, Andorra, Vatican City, and French territories such as Guadeloupe, French Guiana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin, Mayotte.