What is IOSS
IOSS is a new tax scheme used to pay VAT on goods valued below 150EUR entering the EU from outside the EU (i.e. UK shops posting to European consumers). It shifts the burden of VAT collection to you as the vendor or the marketplace through which you sell.
It is intended to simplify the shipping process and deliver an improved customer experience to purchasers by preventing shipments from being delayed at the border for import VAT, by shifting the responsibility of VAT collection to the exporter.
This article explains how we have implemented IOSS in Click & Drop and how you can use it. For information on the IOSS scheme, please see the resources at the bottom of this article.
How to Configure and Use IOSS in Click & Drop
Click & Drop fully supports both individual customers IOSS registration, Online Marketplaces, and Electronic Interfaces. Click & Drop has implemented IOSS in such a way that you might not need to supply your IOSS number against each individual IOSS order.
To enjoy the most functionality from our IOSS implementation, ensure you specify the value in GBP up to which you charge IOSS, and enable 'Automatically apply IOSS number' in Settings / Customs . For orders in EUR, we will use the 150 EUR level set by the IOSS scheme. This value should be ex-tax.
Please note, you must type a value in the IOSS GBP cut off level field before you will see the option to automatically apply IOSS numbers.
Online Marketplaces and Electronic Interfaces
For orders placed through:
- eBay
- Etsy
- Amazon
- Not On The High Street
we will automatically supply the IOSS in electronic customs where applicable, you do not need to do anything.
For orders placed through:
- Etsy
- Not On The High Street
We can automatically apply the IOSS number to your orders if you have set the level up to which import VAT is charged. You can set this level in Settings / Customs.
As IOSS is a new scheme, not all marketplaces and channels are registered under the scheme. We monitor developments with the IOSS scheme closely and add additional IOSS numbers as they are made available from channels and marketplaces.
Using Your IOSS Number
You can choose to have your Trading Name IOSS number applied to all eligible orders where the IOSS transaction has not been completed under a marketplaces' IOSS number. To do so, please go to Settings / Customs and enable 'Automatically apply IOSS number'.
The descriptions that follow assume you have not chosen to have your IOSS number automatically applied, and the order has not come from a marketplace that apply their own IOSS number to transactions.
Channel Imports
If you have your own IOSS number for your other sales channels you fulfil through Click & Drop, you can supply this in your Click & Drop settings.
1). In your Click & Drop platform, click Settings in the top right of your browser window
2). Click “Trading Names” and then select the trading name to which you would like your IOSS number to apply.
3). Using the 'Pre-registration tax schemes & IOSS' field, select 'IOSS (European Union)'.
4). A new field will appear allowing you to enter your IOSS number
Once you have supplied your IOSS number for a trading name and enabled auto apply IOSS number, all orders we receive from that trading name's integrations valued at less than 150 euros or the GBP level set in Settings / Customs, being sent to the EU by an IOSS supporting service, will be sent under the IOSS scheme.
If you make sales in GBP, please ensure you have set the 'IOSS GBP cut off level' in Settings / Settings / Customs.
Spreadsheet Import / Click & Drop Desktop
When importing orders into Click & Drop using Click & Drop Desktop, Dropbox, or CSV manual import in the Click & Drop platform, please ensure you provide the IOSS number against each order. If you do not indicate an order is IOSS by supplying the IOSS number, the shipment will not be sent under the IOSS scheme.
API
When importing orders into Click & Drop using the API, please ensure you provide the IOSS number against each order. If you do not indicate an order is IOSS by supplying the IOSS number, the shipment will not be sent under the IOSS scheme
Manual order creation
When creating orders in the Click & Drop interface, you can indicate your order is to be sent under the IOSS scheme by entering the IOSS number under which the import VAT was captured. You can enter the IOSS number when creating an order by clicking Add products:
You can then supply the IOSS number in the field below:
Alternatively, you can supply the IOSS number in the Apply Postage screen as shown below:
Important Note: IOSS numbers are not printed on CN22 or CN23 customs documentation. Your label will carry the IOSS logo for eligible orders sent under the scheme, and the appropriate IOSS number will be transmitted in electronic customs.
How does it relate to other schemes:
IOSS is currently classed as a type of PRS (Pre-registration tax scheme).
Goods shipped within the EU between countries use OSS (One-Stop Shop).
Goods valued above 150EUR will have to use alternative schemes (PRS) or services (DDU / DDP)
Resources
https://www.royalmail.com/import-one-stop-shop-ioss
https://www.royalmail.com/business/international/guide/delivered-duties-paid/ioss-faqs