What is IOSS
IOSS is a 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
There are three main ways to assign an IOSS number to your orders in Click & Drop:
1. You can save an IOSS Number against each of your trading names in your Trading Names settings page. Click & Drop will automatically apply this value to every eligible order. If you have more than one trading name, you will need to add an IOSS number to each.
2. You can add IOSS numbers to specific orders when applying postage to an order manually through Click & Drop, or by adding an IOSS Number column to any spreadsheets you import, or by adding an IOSS number to any orders imported via our Public API integration.
3. Some eCommerce integrations automatically provide Click & Drop with an IOSS number. More details on this can be found later in this article.
For all of these methods, you will first need to 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.
Importing orders from eCommerce marketplaces and webstores that provide IOSS automatically
For orders placed through:
- eBay
- Amazon
We will automatically supply the IOSS in electronic customs where applicable, you do not need to do anything.
For orders placed through all other integrations, 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.
Importing orders from eCommerce marketplaces and webstores that do not provide IOSS numbers automatically
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.
Managing Your IOSS Numbers
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.
Importing orders via spreadsheet and Click & Drop Desktop
When importing orders into Click & Drop via spreadsheet or Click & Drop Desktop, we will automatically use any IOSS numbers that have been saved in your Trading Names settings page.
If you only have one trading name set up or if you do not specify a trading name in your spreadsheet, we will use the IOSS number from your default trading name.
If you have more than one trading name with different IOSS numbers, please make sure you have mapped a trading name column so we know which trading name's IOSS number to apply to your orders.
If you do not wish for Click & Drop to use the IOSS numbers that have been saved in your Trading Names settings page, you can map the IOSS Number column and add a specific IOSS number against the orders in your spreadsheet. We will use the IOSS Number you have provided instead of using the default value from your Trading Names settings page.
If you have not provided an IOSS number either in your Trading Names settings page or as a column in your spreadsheet, your order or orders will not be sent under the IOSS scheme.
Importing orders via Public API
When importing orders into Click & Drop using the Public 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
Creating orders manually
When creating orders manually in Click & Drop, 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