EU IOSS Signup

Discussion in 'International Business' started by Graham Wharton, Apr 20, 2021.

  1. Graham Wharton

    Graham Wharton UKBF Contributor

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    Has anyone found a way to sign up to the IOSS system in the EU without having to appoint an EU VAT intermediary. The guidance says it is not necessary to have an intermediary if there is a vat mutual assistance agreement, which the EU and UK now have.
     
    Posted: Apr 20, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  2. Graham Wharton

    Graham Wharton UKBF Contributor

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    Find attached response from Irish Revenue regarding application for IOSS without appointing an EU VAT Intermediary.

    Dear Graham,

    I refer to your e-mail below.

    At present, we are waiting confirmation on whether or not UK traders will need to use an intermediary to register for the Import Scheme.

    The advice to UK traders to hold off applying for the Import scheme (via an intermediary) until we receive confirmation on the matter.

    Regards,

    Office of the Revenue Commissioners, Government Buildings, Millennium Centre, Dundalk, Co. Louth, Ireland.
     
    Posted: Apr 23, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  3. ADC

    ADC UKBF Contributor

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    Apparently Ireland are expecting a decision from the EU by 30th April. Now the EU commission has ratified the trade agreement, I would expect an answer in the next few days.
     
    Posted: Apr 28, 2021 By: ADC Member since: Jun 25, 2009
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  4. ADC

    ADC UKBF Contributor

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    Do you sell products that need a CE certification? Have you appointed an EU responsible person for that? Apparently you have to do it by July 21st.
     
    Posted: Apr 28, 2021 By: ADC Member since: Jun 25, 2009
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  5. Graham Wharton

    Graham Wharton UKBF Contributor

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    My products are chemicals. All manufactured in the EU by mainstream manufacturers. I buy in bulk, split and sell back to consumers. I provide the manufacturers MSDS but no further certs. None are classified as hazardous for transport. I apply all product labelling as required by MSDS. I'm not aware I need to do any more. I only repackage, I don't alter the product.
     
    Posted: Apr 28, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  6. ADC

    ADC UKBF Contributor

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    You should be alright with chemicals, I think. You can always use the manufacturer for your Responsible Person anyway.

    We sell electrical items manufactured in China, so a bit more hassle for us.
     
    Posted: Apr 28, 2021 By: ADC Member since: Jun 25, 2009
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  7. Graham Wharton

    Graham Wharton UKBF Contributor

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    Thanks for the followup. It is quite often the only time you find out that you should be doing something, when chatting like this. Requirements can be hidden away, with governing bodies just assuming you know where to look with no advertising of the requirements.
     
    Posted: Apr 28, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  8. JPMiddleton

    JPMiddleton UKBF Enthusiast

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    Have you heard any more about this? There does appear to be a lack of awareness and understanding regarding this new system. I see Royal Mail's DDP page now mentions the IOSS system also....

    https://www.royalmail.com/business/international/guide/delivered-duties-paid

    The Import One Stop Shop (IOSS)
    The Import One Stop Shop (IOSS) is being introduced by the EU, to enable and simplify the declaration and payment of VAT for distance sales of imported goods – with a value up to €150.

    The Import One Stop Shop (IOSS) is the electronic portal, your business can use from 1 July 2021 to comply with the new VAT e-commerce obligations on distance sales of imported goods. Once registered for IOSS, VAT can be collected at the checkout and paid directly to EU customs authorities in quarterly, EU, VAT returns. No additional customs handling fees will be applied when the parcels arrive in the EU customs facility, speeding up the release into free circulation of the goods to your customer.

    Royal Mail are currently working hard behind the scenes on how you send items with us under the IOSS scheme, should you register yourself, but also to assist you in registering with and operating within the IOSS framework. These solutions will allow goods to be sent to customers in the EU with VAT paid – quickly and simply. Items valued over €150 will need to be sent DDU or as postal DDP. Once these are fully tested and operational, we will provide further details here on the Royal Mail website.

    The new rules will transform how you do business in the European Union. You can find more information about these changes hereOpens in a new window that the European Commission has published.
     
    Posted: May 5, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  9. Graham Wharton

    Graham Wharton UKBF Contributor

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    I know the new DDP (Delivered Duty Paid) option from Royal Mail will be able to be used for items above 150EUR going to europe, and the VAT and Duty can be paid in advance by yourself along with a small admin fee as part of the sending process (You pay the VAT and Duty to Royal Mail, and they pay the EU). You don't have to use this service, and if you don't the Duty and VAT will be collected at the border and billed to the receiver with an Admin fee DDU (Delivered Duty Unpaid)/DAP (Delivered at Place). These items are excluded from IOSS as they are above 150 EUR. The DDP service isn't quite live yet, DDU/DAP are just the regular post options to the EU.

    This is completely separate from IOSS which can be used to pay the VAT on items below 150EUR where no duty is due. With IOSS you pay the VAT to your intermediary, or direct to the EU. No payments go to Royal Mail with IOSS.

    Once you are successfully signed up to IOSS, you will be issued with an IM******** VAT number from either your VAT Intermediary, or direct from the EU member state. IM standing for Import.

    You should enter your IM********** VAT number under the C&D Settings -> Trading Names -> Pre Registration Tax Schemes. The IM*********** VAT Number will appear on any CN22, CN23 paperwork generated, and will also be included in the electronic data. The Australia, New Zealand and Norway schemes can also be added in addition to the EU IOSS Scheme if you are registered in them aswell. Presumably customs in the EU will see the fact that there is an IOSS IM********* VAT number associated with the item, and if the value is below 150EUR, it will just be waived straight through as they know VAT has already been paid.

    As far as being actually able to sign up to IOSS without using an intermediary, no news as yet as far as I can see. I have made contact with the Federation of Small Businesses (FSB)'s EU Expert who is making enquiries with the European Commission directly. If I get any updates, I will drop them here.
     
    Posted: May 5, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  10. JPMiddleton

    JPMiddleton UKBF Enthusiast

    323 64
    Yeah, I understand how it works (we use DDP with DHL) and how IOSS is going to work, but the link does cite IOSS as there will be a specific need for RM and for EU postal services (and couriers) to know when an item has had it's VAT paid at the time of purchase and not when it arrives, thus not needing a customs handling charge.

    As far as I can see this is the issue that is most likely to cause problems.
     
    Posted: May 5, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  11. JPMiddleton

    JPMiddleton UKBF Enthusiast

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    Specifically, I am interested in if anyone knows if an intermediary is needed to register for IOSS or if we can go ahead and do it ourselves.
     
    Posted: May 5, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  12. Graham Wharton

    Graham Wharton UKBF Contributor

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    I believe we should be finding out soon if that is going to be possible. In the meantime, I was advised by Irish Revenue, not to spend any money appointing an intermediary at this time. We've still got just under 2 months until it goes live, so hopefully enough time to sort out the details and start accepting UK applications directly.

    The only thing that is making me hesitant, is the fact that Norway has had a VAT Mutual Assistance agreement for a while now, and I don't see any options on any member state website to allow Norwegian small businesses to sign up. Perhaps they were waiting for someone larger to come along before spending the money on the web portal?
     
    Posted: May 5, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  13. JPMiddleton

    JPMiddleton UKBF Enthusiast

    323 64
    Have just spoken with our RM account manager, who was fresh off a morning conference call and brought this up.

    It would appear that RM are going to facilitate applications for IOSS as a third party intermediary, and then it's a case of paying the VAT return once a quarter. She's double checking, but is pretty sure the number will be fine to use for non-RM stuff (wouldn't make sense not to).

    Once the application is complete the IOSS number will be included on the parcel.

    They're not sure when it's going to be ready, but it seems it's yet another rush. If this was ready on July 1st as initially intended we'd have seem much less 'friction' exporting parcels to the EU. Begs the question, did they delay to add in some extra friction intentionally between the UK and EU for a few months!
     
    Posted: May 7, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  14. Graham Wharton

    Graham Wharton UKBF Contributor

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    Thats interesting, but presumably only for parcels sent via RM. I would need a different solution for my other couriers.
     
    Posted: May 7, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  15. JPMiddleton

    JPMiddleton UKBF Enthusiast

    323 64
    I don't think so, RM will help you get an IOSS number and then you can use for all couriers. She is confirming and double checking this, it wouldn't make sense for the EU to ask us to reg' once on IOSS to pay VAT for RM parcels and then another registration for another courier, and so on.
     
    Posted: May 7, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  16. JPMiddleton

    JPMiddleton UKBF Enthusiast

    323 64
    Our DHL account manager also just confirmed they're ready... they have added an IOSS number field and it will be added to their labels and treated as VAT paid.
     
    Posted: May 7, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  17. Graham Wharton

    Graham Wharton UKBF Contributor

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    It is my understanding that if Royal Mail are acting as an intermediary, then they become legally responsible for the EU VAT collected under the scheme. Perhaps they are not full intermediaries under their proposed scheme. I guess thats what they are trying to work out.
     
    Posted: May 7, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  18. Graham Wharton

    Graham Wharton UKBF Contributor

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    Yeah, I saw the DHL entry on the portal this week.

    I applied for the Norway VOEC scheme but was turned down as my products are dutiable in Norway. The only other two schemes I know of are NZ and AU, but I dont ship enough over there to be worthwhile.
     
    Posted: May 7, 2021 By: Graham Wharton Member since: Apr 20, 2021
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  19. JPMiddleton

    JPMiddleton UKBF Enthusiast

    323 64
    Yeah, she just clarified that they're merely providing information as to how to do it easily and they're not acting on behalf of anyone.
     
    Posted: May 7, 2021 By: JPMiddleton Member since: Aug 18, 2011
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  20. schmexit

    schmexit UKBF Contributor

    101 17
    I'm also interested in this. Ireland says you must have an intermediary. However, EU's Explanatory Notes on VAT e-commerce rules say:

    (can't post link but if you Google the text, it comes up)

    "Member States may not oblige non-EU suppliers to appoint a tax representative to use the non-Union scheme (Article 204 of the VAT Directive)."

    Shouldn't this then apply?
     
    Posted: May 7, 2021 By: schmexit Member since: May 7, 2021
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