iOSS VAT from July
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
188 replies
Seller_esvgLzKXw2YAl
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.
Seller_Yja9oH7DLHk2I
Ah, sorry. When it happens on the other platform a code is added to the address.
Seller_6fydnvOwuH7PO
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:
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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.
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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).
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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).
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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:
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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.
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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.
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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.
Seller_Rvzyc4bmDZJWT
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
Seller_58ISxAlYru6Jh
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.
Seller_EIkfX7Xycaq4H
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
Seller_h0BFU1RaxQlgm
Hello all, does anyone know if Amazon will provide their IOSS number ?
Is there a definitive answer from Amazon?
Seller_d6bE7YoiJVQbQ
ebay are issuing me a IOSS number , amazon have not reached out with this yet?
also i take it i do not have to send DDP anymore?
Seller_ZjZ4slOF0jHpk
It’s Jun 25th. These new rules come in on 1 July - in 6 days time. Yet not a peep from Amazon about how they/we are going to manage the changes. They clearly don’t care of the time and work that may be required from us sellers to implement any changes to our processes. So is it going to be the 1st, the midnight before or weeks after the 1st before they tell us what, if anything, we need to do?
I already know from Etsy what to do there. And I now know the Post Offices are not setup for this, yet. I also see that Ebay are letting sellers know their IOSS and RM are giving out some info for C&D. Just silence from Amazon.
