iOSS VAT from July


#1

Does anyone know how ioss will work in July?

from what I’ve read amazon will be collecting vat for all Eu sites but how will the customs in those countries know that the VAT has been paid?

Thanks


#2

Not that I know a great deal about it, but I would imagine that it’s as simple as the company itself reports the vat, but as it paid by Amazon, it’s a zero return.


#3

I don’t mean that I mean what will the customs procedure be to determine if VAT has been paid

Will there be a barcode to add or something?


#4

I think you will still have to pay import VAT and claim it back. That part is not changing.


#5

Read again I am talking about Amazon eu nothing to do with import VAT


#6

Ah, sorry. When it happens on the other platform a code is added to the address.


#7

The simple answer is that we don’t know yet.

From the EU side there are some explanatory notes here which go into some detail: https://ec.europa.eu/taxation_customs/sites/taxation/files/vatecommerceexplanatory_28102020_en.pdf

Some of my thoughts:

  • The IOSS is not mandatory (per section 4.2.2 of the pdf), so I could imagine Amazon simply not implementing it straight from July.

    • However, in any case Amazon would still become the deemed supplier (sec 2.1.3), so the seller wouldn’t be able to use IOSS by themselves either (see Q8 on page 65 - seller in IOSS but marketplace is not using IOSS).

    • It could be that something else makes Amazon’s use of IOSS mandatory that I’m not seeing right now - it is all quite complex with the deemed supplier rules etc, and different situations (e.g. goods in EU vs. goods outside EU).

  • If Amazon participates in IOSS, Amazon would have a single IOSS VAT identification number (sec 4.2.6) it would share with sellers, and it seems it is intended to be semi-secret as the actual imports made using an IOSS number would be matched against Amazon’s VAT returns - the number would have to be “securely transmitted” to customs authorities (so not on shipping labels?). A couple of thoughts:

    • It seems like keeping the IOSS number secret would be very hard. I can imagine random overseas sellers using Amazon’s IOSS number to get their packages through destination country customs - but maybe there will be some controls against that. And I think this is a problem e.g. AU/NO/NZ already face with their current systems.

    • If the IOSS is indeed supposed to be electronically transmitted to destination customs and not put on shipping labels, it sounds like it will be quite a difficult task to accomplish reliably across all international carriers. Or maybe a customs/shipping label is a “secure transmission”, though I doubt it.

All in all I’d say that it is best not to think/worry/speculate about it too much yet, and just wait on official word from e.g. Amazon, EU, EU members, and/or carriers.


#8

Thanks great reply, this is what I was looking for :+1:


#9

I think it work like this. we all have an IOSS number for one member state. We will all pay import VAT at the rate of what every country your goods are stored. we will then claim this VAT back from AMAZON who will in turn claim it back from there account.
Amazon will deduct VAT from the day the item is sold (but not pay this VAT until the quarter it due) is making them even more money…

maybe on our IOSS there be a place to input a number that Amazon will generate that tell IOSS you are selling on AMAZON

or maybe all of this will be done on AMAZON… But one thing for sure, at some point if all being done in AMAZON you going to have to tell AMAZON your cost price for the goods and no doubt supply an invoice to prove it and the invoice on cost of shipping or the IOSS declaration from Customs clearing in to the EU


#10

I add just like our two weeks payment terms with deductions and hold over %… the VAT pay back will be once a quarter… each time we ship there be a document to fill in on the cost of goods being declared and the amount of shipping and the harmonized codes of the items your shipping.


#11

We’ve just received an email from eBay explaining that they will collect VAT on behalf of us at checkout and provide us with an IOSS number which we will then need to pass on to Royal Mail. They will hopefully update to pull that field through to click and drop along with the rest of the info. I’m hoping Amazon do the same. Hope this helps.


#12

Amazon help page on this says so: https://sellercentral-europe.amazon.com/gc/vat-education/eu-dr

If you are shipping products to EU customers from a non-EU location, where Amazon has collected VAT, you must ensure that the following information is provided to your logistics partner for customs purposes; usually your postal operator or express carrier:

• Amazon’s Import One Stop Shop (IOSS) number (made visible to you within your order details pages in Seller Central);
• The intrinsic value of the consignment as assessed by Amazon at check out (being <= EUR 150); and
• The Amazon order ID.


#13

Amazon say that their IOSS number will be visible on the order detail pages (not so far), I assume it will be visible July 1st, but the issue for outside EU orders it can take 1 week transit time, by the time the item arrives in the EU the new IOSS will be in force but with no IOSS number issued by Amazon.


#14

I am guessing there will be a code under the buyers name on the shipping address ( ebay currently do this for sales to Australia and Norway that have sales tax )

It shows the sales tax was paid at point of sale

That seems to work quite well, ebay collects and remits the tax so hopefully amazon will do the same


#15

That shouldn’t matter, as it will be determined by order date. If the order was placed prior to July 1st, then the old system will be used to process it at the mail centres.

At least it should, as that’s what happened wrt orders to EU at turn of the year.


#16

Hello all, does anyone know if Amazon will provide their IOSS number ?
Is there a definitive answer from Amazon?


#17

They’re legally obligated to provide one. Iirc, it’s been stated that the number will appear on the order detail page, but beyond that we’re still in the dark.

Hopefully Amazon will release info before the 1st July, but with how their communication has been lately, I doubt it.


#18

Today is the 22nd of June and still they haven’t introduced this IOSS service. This is really frustrating…


#19

Most likely they’ll roll it out on July 1st then when no one’s prepared send an account warning and ask for an action plan along with a strongly worded statement to the effect of a teacher telling off a child “don’t ever do this again”

Amazon, if I’m wrong, feel free to tell us something. Even telling us you have no idea what’s going to happen is better than silence.


#20

I just spoke to Royal Mail and they told me there is a drop down under trading names called Pre-registration tax schemes and we need to add the IOSS number for amazon ourselves. The same for ebay.