3.1.4. 150 threshold €

5. What happens if the customs authorities consider that the goods for which IOSS was used have been undervalued and the correct intrinsic value exceeds 150 EUR ? On whose behalf is the import declaration submitted?

In certain situations, the intrinsic value may exceed EUR 150 despite the good faith of the person concerned: for example, it may be due to exchange rate fluctuations (see section 3.1.5), grouped shipments (see section 3.1.6), etc .

In situations where, when presenting the goods at customs, the customs authorities have a well-founded suspicion that the intrinsic value exceeds EUR 150 (due, for example, to incorrect pricing or intentional undervaluation by the supplier) , it will be up to the customs authorities of the importing Member State to collect VAT on import and customs duties at the time of clearance of the goods, even if these were declared in the IOSS ( e.g. , if the consumer had already paid VAT to the supplier or to the electronic interface). This will be the case, in particular, in situations where verification procedures pursuant to Article 140 of AE CAU do not ultimately confirm the declared value of the transaction.

In such situations, if the Member State in which the goods registered in the IOSS were declared for release into free circulation is different from the Member State to which the goods are transported or dispatched, the goods will be released in accordance with the rules applicable to the shipments whose value exceeds 150 EUR.

The declarant or his representative shall submit a new import declaration using data set H1 or, if applicable, H6 or I1. If the importer accepts delivery of the goods, he or she will be required to pay import VAT and possibly customs duties to the customs authorities. In addition, the declarant must invalidate the previous customs declaration (see details in chapter 5).

However, the importer may reject the goods, in which case normal customs practices and formalities will apply.

In both cases, the importer can contact the supplier or the electronic interface to claim the VAT erroneously paid at the time of delivery. To do this, the consumer can use proof of payment to customs or the customs decision regarding the destroyed or abandoned goods. The effective proof will depend on whether or not the importer (i.e. the consignee) has received the goods. If you have done so and have paid the recalculated amount of VAT and, if applicable, customs duties, the importer will use the customs decision regarding the release of the goods and the payment of VAT as evidence to obtain their refund from of the supplier or the electronic interface. If the supplier refuses to accept the goods, they are returned and, in principle, the supplier should not require any additional proof apart from proof of export.

If VAT is collected at the time of import of the goods, this delivery should not be included in the IOSS VAT return. Based on proof of payment by the consumer to customs, the supplier, electronic interface or intermediary can rectify its records and IOSS VAT return.

For more information on applicable customs formalities, see section 2.2.3 of this document.

6. How do you check that assets are not undervalued?

It is up to the customs authorities of the importing Member States to verify the value of imported goods, using the risk assessment criterion, especially when the existence of reasonable doubts due to abnormally low prices requires the initiation of verification procedures in accordance with to article 140 of the EA CAU. Customs officers take into account several factors in their risk assessment, of which the value of the goods is only one of them.

7. What happens if the goods have been undervalued, but the corrected intrinsic value does not exceed €150?

From a customs point of view, the conditions for using the import declaration with the H7 data set are still met. However, the customs declaration must be rectified with respect to the intrinsic value, according to the procedure described in section 2.2.3.

In this situation, the importation of low value goods will continue to benefit from the import VAT exemption , provided that a valid identification number for VAT purposes is indicated in the customs declaration of the IOSS and the conditions for using the IOSS are met. The goods will be released without paying additional VAT to the customs authorities (the correct amount of VAT has to be indicated in the IOSS VAT declaration and paid by the supplier or the electronic interface, directly or through a designated intermediary for this purpose. effect). Additional VAT will be recovered through administrative cooperation between customs and tax authorities.

The customs declarant will not be liable for additional VAT in this situation, unless specific circumstances, such as participation in a fraud scheme, and applicable national law justify the declarant's liability.

8. If IOSS is used, who is obliged to pay the additional VAT (as well as surcharges and interest) when an undervaluation is detected after release of the goods?

The tax authorities will carry out a post-release audit during which they will check the IOSS VAT declaration and the seller's records. In this situation, the sole debtor for any possible payment of additional VAT (as well as surcharges and interest) after the release of the goods using the IOSS is the supplier, the taxable person considered to be the supplier or the intermediary. Ultimately, the customs declarant may also be liable for payment if he or she has actively participated in a fraud mechanism.

9. What happens if the value of the goods at the time of presentation to customs is different from that indicated in the documents accompanying the goods ( e.g. , at the time of purchase, the goods benefited from a promotional or discount period)?

The intrinsic value at the time of importation is the net price paid by the consumer at the time of delivery (i.e. at the time the consumer's payment was accepted), as stated on the document accompanying the goods. (i.e. the commercial invoice). In case of doubt, customs authorities may request proof of payment from the consumer (i.e. the importer) before the goods are released for free circulation.