Free your business from complex VAT liabilities on import of low value goods to the EU

From 1 July 2021 the VAT rules changed, and the EU introduced a scheme called the “Import One Stop Shop” (IOSS).

Taxamo Assure by Vertex is an easy VAT e-commerce compliance solution which facilitates the sale of your goods. Easy sign up. Payment per parcel. Your parcels arrive, your customers are happy, and VAT payment is all taken care of.

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Automated invoicing at point of sale

With the IOSS scheme sellers must calculate the VAT required for each sale based on the country in which the goods are delivered and pay what is due to each individually or to their IOSS registered country.

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What Assure does for you:

  • Seamless integration into your existing customer checkout journey
  • Controls the real-time VAT calculation, invoicing, and VAT number validation on your sales
  • Taxamo is liable for the VAT and files and remits VAT due, leaving you to focus on sales
excited man looking inside open cardboard box
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Signed, sealed, delivered

If you do nothing, you could incur additional costs.

Your EU customers will have to pay the correct VAT plus handling / clearance fees before they can receive their parcel — and they can refuse, it could get lost in transit/stuck at the border or returned causing additional costs.

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Assure removes this risk by:

  • Facilitating the sale and being liable for the VAT
  • Calculating and collecting VAT at the time of the sale
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Filing and payment, taken care of

No need to register for IOSS and file tax returns. Avoid the VAT calculation, registration, filing and remittance. Shift the VAT liability to a third party - no penalties of late fees.

Streamlined customer journey - Seamless VAT compliance integration from checkout to delivery.

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Taxamo takes care of this for you:

  • Taxamo files and remits VAT due for sales where Taxamo facilitates the sale
  • Taxamo has the foreign exchange exposure on these VAT payments and provide certainty on VAT compliance, to ensure no VAT handling fees or delays

IOSS Options

Taxamo Assure


Smaller volumes of parcels — £2 fee per parcel

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Taxamo Assure

Smaller volumes of parcels — £2 fee per parcel

Pay as you go. There is a fixed £2 per-parcel service fee regardless of package weight and size. Fees are charged to the seller credit card on record.

Deloitte IOSS Registration & Filing Service Solution


Larger volumes of parcels — annual fixed fee, paid monthly

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Deloitte IOSS Registration & Filing Service Solution

Larger volumes of parcels — annual fixed fee, paid monthly

You can pay Deloitte an annual fixed fee of £2,000 plus a £300 registration fee in year one (excl VAT) for all your EU parcels. You will receive your own IOSS number and the process will largely be managed for you. This option is suitable for larger volumes. Read more about this service here.

Do it yourself


Fully managed by you

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Do it yourself

Fully managed by you

You can also manage the process yourself. You would need to register yourself to obtain your own IOSS number, and handle your own compliance.

Integrating Assure

Once registered, sellers integrate the cloud based Taxamo Assure solution to their e-commerce platform to pass the required transaction data for EU VAT management.

We strive to enable easy integration of Taxamo Assure with your existing technology. Assure is available as a plug-in for popular ecommerce check-out processes and can also be integrated with our out-of-the-box API.

FAQ

What if I am selling via an online marketplace?

If you’re selling via an online marketplace in general this marketplace will be the deemed supplier and will use its IOSS registration for VAT reporting.

Frequently asked questions

What are the new regulations?

What are the new regulations?

As of July 1, 2021, items imported into the EU with a value of €22 or less will no longer be relieved from VAT, and the VAT amount applicable is subject to the local rate of VAT of the customer's delivery country.

Reporting VAT in lots of different EU countries could get quite complicated and cumbersome quickly, which is why the EU has introduced a scheme called the “Import One Stop Shop” (IOSS).

IOSS allows you to register with just one of the 27 EU tax authorities, and to submit one monthly IOSS VAT return to facilitate the right payment of VAT to the other EU tax authorities in the countries where the transport of the goods ends. Getting IOSS ready is estimated to take 5 – 7 weeks and non-EU sellers may need to appoint an intermediary, so act quickly.

From when are the rules changing?

From when are the rules changing?

The rules took effect on 1 July 2021.

What sales are in scope for IOSS and the Assure service?

What sales are in scope for IOSS and the Assure service?

The Assure service is for parcels valued up to 150 EUR being shipped from outside the EU into the EU.

Only goods shipped in a single package with a total price of up to 150 EUR would qualify for the IOSS. IOSS also excludes goods subject to excise duties (of any value). The 150 EUR refers to the price of the goods themselves when sold to the EU. This excludes insurance and transport costs, unless these are already included in the price, and excludes any other taxes and charges.

Do your sales require higher volumes of consignments (3000+ a year) to consumers in the EU? You may be better suited for Deloitte’s IOSS registration service - see more here.

What platforms are Assure available on?

What platforms are Assure available on?

Currently Assure is available via a plug-in with Magento, and with direct API integration.

Woocommerce plug-in is coming soon.

We are not currently able to integrate with Shopify due to limitations/restrictions with their checkout.

We are constantly exploring opportunities to widen availability on other popular ecommerce platforms (e.g. Wix, Squarespace, Bigcommerce).

What rate of VAT will be applied to my sales?

What rate of VAT will be applied to my sales?

This will depend on the type of goods sold and the country in which the customer is based. In the EU the standard VAT rate currently ranges between 17% and 27%. However, a reduced rate may also be applicable for certain goods, which could range from 3% to 18% in the EU. You should seek specific advice on the VAT rate applicable to your sales if you are unsure of the correct rate to apply.

What would be required under the new regulations to pay the tax due and what is the payment deadline?

What would be required under the new regulations to pay the tax due and what is the payment deadline?

Without a service like Taxamo Assure by Vertex, you would need to submit an IOSS return each month to the tax authority in the registration country. The return deadline is the end of the month after the reporting period.

The deadline for these payments is the end of the month following the reporting month, the same as the return deadline. As you are established outside the EU, you are registered through a VAT intermediary. You should make a monthly payment of VAT due as declared in the IOSS VAT return to the VAT intermediary at least a few working days prior to the payment deadline as instructed. The VAT intermediary will make the payment to the tax authority in the Member State of registration on your behalf.

When can I start using my IOSS number?

When can I start using my IOSS number?

Once it has been issued you can start using your IOSS number from 1 July 2021.

Do parcels sent using IOSS incur a handling charge?

Do parcels sent using IOSS incur a handling charge?

No. Parcels sent using IOSS should not incur a handling charge.

What if I am selling via an online marketplace?

What if I am selling via an online marketplace?

If you’re selling via an online marketplace in general this marketplace will be the deemed supplier and will use its IOSS registration for VAT reporting.

Can IOSS be used for B2B sales?

Can IOSS be used for B2B sales?

No, IOSS can only be used for B2C sales. Please note, you should obtain your customer’s VAT number as evidence that they are a business customer (and therefore outside of the IOSS).

Do I need an intermediary?

Do I need an intermediary?

As a non-EU seller, you will need an intermediary if you wish to use IOSS.

I am from Northern Ireland (NI). Why is IOSS not relevant for me?

I am from Northern Ireland (NI). Why is IOSS not relevant for me?

When an E-Commerce seller in NI sells goods to consumers in the EU, NI is treated as being within the EU and as such the seller is not importing into the EU. Therefore, these sales are outside the scope of IOSS. However, you can opt to register for OSS.

Where can I learn more about IOSS?

Where can I learn more about IOSS?

The EU has published information regarding IOSS here.

Taxamo Assure, outsourcing VAT management as easy as 1-2-3.

From VAT calculation and invoicing at checkout to returns filing and payments, Taxamo takes on every step eliminating VAT responsibility for the seller.

  1. Register with Taxamo and integrate our technology into your e-commerce platform.
  2. Taxamo determines VAT in real time and invoices the buyer during the checkout process.
  3. Taxamo pulls required VAT data from the ecommerce platform and manages EU VAT filings and payments.