Ecommerce VAT Reform Considered a Success!
One Stop Shop (OSS), introduced in July 2021, allows U.S. businesses to register in only one EU country when selling to European customers.
That is OSS, so what is IOSS? Import One Stop Shop (IOSS) is similar to the OSS scheme, but with a few crucial differences:
- IOSS applies to imported goods worth no more than €150.
- OSS applies to higher value gods and/or goods already located within the EU at point of sale.
The European Commission announced very successful VAT revenue figures after implementation of both schemes.
Six months after the launch of IOSS:
- 8,000 businesses have registered for IOSS
- EU countries collected €6.8 billion in VAT revenues via OSS.
- €2 billion total VAT collected on goods valued €150 or less
- 94% of low value imports into the EU are using an IOSS number
- EU customs handled 500 million items
- Research also highlights 94% rise in positive customer feedback due to VAT transparency.
IOSS rules were implemented to minimize fraud on low value goods. European Commission is very pleased to estimate €1.4 billion in new annual VAT revenue. In addition, €270 million collected is a direct result of IOSS’s capacity to counter fraud and undervaluation losses.
EuroVAT is happy to explain the benefits to U.S. ecommerce businesses. Your IOSS number ensures faster customs clearance and release of goods into the EU. Contact us at email@example.com to learn how to file one VAT return for all your sales in multiple EU countries.
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