IOSS: Simplify the VAT compliance process for your cross-border e-commerce transactions

The IOSS (Import One-Stop Shop) solution is a logistics framework that was introduced by the European Union (EU) as part of the new VAT rules for e-commerce transactions. It simplifies the process of collecting and remitting value-added tax (VAT) on cross-border sales of low-value goods (valued at or below €150) to EU consumers. 

Under the IOSS scheme, businesses that sell goods to customers in the EU can register for IOSS and collect VAT at the point of sale. This allows them to charge customers the correct amount of VAT at the time of purchase, rather than having customers pay VAT upon importation. The IOSS solution streamlines customs procedures and reduces the administrative burden for both businesses and customers. 

Logistics providers play a crucial role in the IOSS solution. They collaborate with businesses to ensure smooth transportation and delivery of goods from outside the EU to customers within the EU. 

What are the benefits of IOSS?  

By utilizing an IOSS solution logistics, businesses can provide:  

• A seamless customer experience. Customers know how much the total cost will be at the time of purchase rather than receiving two separate bills   
• Avoiding delays at customs. If VAT has been paid before customs processing, goods will move faster through the system and arrive with customers sooner than if the VAT was due on delivery 
• Reducing the risk of additional fees or taxes for customers. There are fewer chances of incorrect charges being applied, which could lead to delays and fees for non-compliance 
• Reduces the admin required by companies shipping to the EU through the use of a single centralized system 
  

IOSS simplifies the VAT compliance process for cross-border e-commerce transactions, making it easier for businesses to sell their products to EU consumers. 

Let us help your business

PostNord can help integrate with the IOSS system to handle the VAT declaration and payment processes for the businesses they serve. We can also assist with customs clearance and ensure that the correct VAT amounts are collected and remitted. 

Start your journey with us today