3.1.8. Monthly notification

Main concept

In order to monitor the correct use of the identification number for the purposes of VAT of the IOSS and to prevent the illegal importation of goods subject to exemptions from the VAT under the IOSS, the VAT Directive introduced a specific control measure. Under this measure, each Member State must prepare a monthly report of the total value of goods declared in the IOSS and imported into the Member State concerned over a given month, indicating the total value of imports for each number of IOSS VAT identification. This report should be shared with the tax authority of the relevant Member State of identification, which may use the reports to compare the amounts indicated therein with the content of the IOSS VAT return, as a complementary monitoring tool. Customs declarants have no obligation regarding the monthly report.

The EU Surveillance system monitors imports to and exports from the Union single market in terms of volumes or value and will be used to ensure that Member States fulfill their obligation regarding monthly listing under the IOSS.

The Surveillance system is managed by DG Taxation and Customs Union. The main source of data for the Surveillance system are import and export customs declarations managed by the National Customs Declaration Processing Systems.

How does it work?

Member States transmit to the Surveillance system, at regular intervals, the relevant data elements of the customs declaration for release for free circulation. The Surveillance system consolidates this data and transforms it into information that can be used for reporting and analysis.

In the case of IOSS, Member States must store and make available to other Member States the total value of goods exempt from VAT under IOSS that have been released for free circulation in that Member State concerned during a certain month. Values must be provided for each IOSS VAT identification number. With this, the competent tax authorities of the Member States can compare the VAT tax base obtained from the data elements of the customs declarations with the values indicated in the IOSS VAT declaration.