Do you sell €10k products online?Column
As from July 1, the new VAT rules for e-commerce are in effect. These changes can also be the starting point of new opportunities. Do you use the IOSS facilitation? (I)OSS – simplication at its best.
This new legislation concerns your e-commerce business when your sales are considered “distance sales”, if the following conditions are met:
- 1. You sell goods to consumers (private persons or businesses without a VAT-number) in other EU-countries than the country where your business is established.
- 2. You are involved in the transportation of goods to consumers
- 3. You have a revenue of at least €10.000 per annum from selling goods or digital services to consumers in other EU- countries
With the (I)OSS you can file one VAT return for all your distance sales to customers in the EU. This means you don’t have to register and pay VAT in all the countries that your consumers are located in. Consequently, non-EU businesses can pick a country of choice to register for the (IOSS).
Do you import the products? Take advantage of the IOSS.
Does your e-commerce business sell goods from outside the EU to EU consumers? Then you probably want to take advantage of the new IOSS system. The IOSS system is applicable on distance sales of goods from outside of the EU, when the value of the consignment does not exceed €150. The IOSS system provides the following benefits:
From 1 July 2021 the VAT exemption for the importation of small consignments has come to an end. But if the IOSS is used, the importation of the goods is still exempt from VAT. Therefore VAT is only due on the deliveries to the consumers in the EU (the distance sales).
With a single IOSS return you can file and pay the local VAT that is due on the distance sales to your consumers. This means you don’t have to register and pay VAT in all the EU countries that your consumers are located in. The EU-country of the IOSS registration will send the VAT return and the paid VAT to the EU-countries where the VAT is due.
When using the IOSS for filing the local VAT, there is no obligation to issue an invoice to the consumers. You can however still opt to issue an invoice. This will only need to meet the invoicing requirements imposed by the country of the IOSS registration. For instance the Netherlands!
The Netherlands is a great option for the IOSS-registration and for the importation of goods. This is the case because of the possibilities provided by the Dutch import legislation.
Need help? Do not hesitate to call 088-236 81 55
Yvette de Bake
Vestigingsdirecteur Flynth Almere