Main concept

From July 1, 2021, all low-value goods imported into the EU will be subject to VAT . In order to declare and settle VAT on distance sales of imported goods, a special regime has been created applicable to distance sales of goods imported from third countries or third territories to the EU, known as the single window for imports. ( IOSS ).

The explanation below is a brief summary of this regime and is intended to cover basic concepts and how the system works. For a comprehensive understanding of the IOSS, see section 4.2 of the VAT Explanatory Notes, which includes, among other things, what transactions it covers, who can use the scheme and how it works.

The use of this special regime (IOSS) is not mandatory for sellers. For the purposes of this guidance document, the term “seller” may refer to suppliers, underlying suppliers and taxable persons considered to be suppliers (electronic interface), depending on the context. In addition, such sellers may be required to designate an intermediary to use the IOSS.

In order to use the IOSS, it is necessary for a taxable person or his intermediary to register with the IOSS to obtain an IOSS VAT identification number. Further details on who can use IOSS are provided in sections 4.2.4 and 4.2.5 of the VAT Explanatory Notes. More information about the registration process can be found in the one-stop shop guide. A seller who has chosen to use the IOSS is required to declare all his distance sales of imported goods of low value to consumers throughout the EU using this IOSS VAT identification number . The tax authorities of the Member State of identification will be responsible for carrying out the check to ensure that the seller has collected VAT under the IOSS for all sales of low value goods to EU consumers.

The scope of application of this special regime (the IOSS) is limited to distance sales of goods in consignments whose intrinsic value does not exceed 150 EUR at the time of delivery, imported from a third territory or third country to the EU. Excise goods , as defined in Article 2(3) of the VAT Directive, are excluded from the IOSS [see section 1.1 .2, letter a), and section 2.2.1.1].

For a more detailed description of the scope of application of the IOSS, see section 4.2.3 of the Explanatory Notes on VAT. In addition, an overview of the scope of application of the IOSS, the special procedure and the customs declaration with the H7 data set is included in Annex 1 .