Overview: Benefits of IOSS Number
IOSS number popularly known as import one-stop-shop number is here to be in the game and remove all the existing VAT implications. Irrespective of the value of goods being imported to the EU, after 1st July, all the commercial goods will be subjected to VAT and thus IOSS.
For years, cross-border e-commerce has been growing and contributing to the growth of the European economy. However, it is also a market where a large number of small businesses operate and it is, therefore, crucial that any new regulation is simple and easy to comply with.
That is why the authorities introduced the IOSS number. Now if you do not know it already, an IOSS number is an Import One-Stop-Shop mechanism that is an online portal that allows retailers to register and fulfill their e-commerce VAT obligations in a single location. It is an import system that is meant to streamline VAT collection for cross-border transactions within the EU. In other words, it’s an easy way for retailers to collect the correct amount of VAT for the country in which their customer resides, whether it is a B2B or B2C transaction.
Here are a few prominent benefits of IOSS number
1. Makes VAT collection easier-
One of the major benefits and the reason behind implementing IOSS is to make VAT collections easier and remove any and every additional formalities that were there. All of the sales of such importers and exporters will now be directed through one single platform which is IOSS.
2. Easy procedure-
After loss came into power, the VAT paying procedure has been more simplified and easy to use for everyone. From now on, the liability of paying VAT will now be of marketplaces and not single vendors.
3. Remove any additional costs-
By the introduction of the IOSS number, all of the additional costs such as import duty, etc are now removed if the marketplaces or vendors operate with an IOSS number. And if not, then they have to bear the burden of ‘n’ number of additional costs. All the information has been disclosed to the customers as well so they pay just enough costs and nothing more.
4. One number works for all-
If you are registered for an IOSS number in one of many EU countries, then such IOSS numbers will apply to every such country so you do not have to bother registering for every country. And hence, you can finally bid adieu to different VAT regulations that every country has to offer.
5. Custom clearance-
Ioss makes it easier to clear out all the customs duties and deliver the goods in any part of the EU. so now being a customer you do not have to worry much as your marketplace will make it much easier for you and can take full advantage of IOSS number.
6. Centralize the process-
Now that paying VAT is extremely important despite the value of import it gets extremely difficult to pay VAT and other taxes but not now as IOSS makes the process centralized and makes it easy to pay VAT and eliminate all the extra costs.
The authorities of the EU have implemented Import One-stop Shop to carry and make the process of VAT easier for all the sellers and marketplaces on the sale and import of goods to the EU countries.
The IOSS is a single online system that allows companies from all over the world, registered or not in any EU Member State, to declare and pay import VAT on goods imported into the European Union (EU). This will reduce paperwork for companies who want to sell goods in Europe and make it easier for national authorities to monitor VAT payments.
Major benefits of IOSS number include making VAT collection easier, centralizing the process, eliminating extra costs, customs clearance, and easy procedure.
Book end-to-end experts consultation with Odint finance and legal experts
No, it is optional to have an IOSS number however quite important to have one as it gives many benefits as discussed above. But if you are importing to the EU countries then you should have an IOSS number.
No, one IOSS number will work for all. So you do not have to have different IOSS numbers but you can easily trade with one itself.
If you are a resident of the EU, then you have two options, one is to apply through a mediator and another option is to apply directly. But if you are a non-resident then the only option you have is to apply through a mediator.
Sandeepan has great experience in business consulting and management, Sandeepan provides insightful resources in Company Formation, Business Expansion, and related areas.