EU VAT Import One-Stop-Shop for US & Canadian Companies
VAT IOSS (Import One-Stop Shop) was introduced by the European Union (EU) on 01 July 2021 to simplify and streamline the collection and payment of value-added tax (VAT) on cross-border e-commerce sales of goods imported into the EU.
The VAT IOSS scheme is available for businesses located both inside and outside the EU, so USA and Canadian companies can avail of this scheme. Doing so enables businesses to comply with their EU VAT obligations for sales of goods to EU consumers.
By registering for VAT IOSS, businesses can benefit from simplified VAT procedures and avoid the need for multiple VAT registrations in different EU member states.
How can North American Companies register for VAT IOSS
With our expertise and extensive knowledge of UK & EU VAT regulations we are perfectly placed to work with North American businesses and their advisors to navigate the complex landscape of Value Added Tax in the UK and on the European Union.
Businesses based outside of the EU cannot register for the IOSS without an EU Vat intermediary.
Registration needs to be completed and managed by your appointed Vat Intermediary.
As an EU approved Vat intermediary for IOSS, Orsa Saiwai can be your appointed Vat intermediary.
We currently represent over 650 North American companies in all 27 European Member States.
Once registered, your business will receive a unique EU IOSS identification number.
How does VAT IOSS operate?
Our expert Vat team is well-versed in the complexities of UK & EU VAT registration. Our Vat registration team can guide US & Canadian businesses through the entire process, ensuring that all necessary documentation is completed accurately and efficiently.
Vat IOSS is similar to US Sales tax in how it is collected and paid to the tax agencies. When an EU based customer proceeds to make the payment for the goods, Vat will be charged and added to the amount due for payment.
The Vat chargeable will vary depending on the EU country where the consumer is based, so for example a French customer purchasing a tshirt from a online store would pay Vat at 20% while a customer in Germany would pay 19% Vat. This is due to the different Vat rates applied in the different EU countries.
Similar to US Sales Tax, it is the seller that is responsible collecting and paying across the VAT to the EU tax agencies. The Vat collected by the seller needs to be paid on a monthly basis in EUR to the EU state in which you are registered for Vat IOSS.
Do I need specific software for VAT IOSS?
You do not need specific software or applications to operate Vat IOSS. We work with multiple clients in Canada and the USA who use varied software applications and ecommerce platform solutions.
How can I avoid expensive bank charges when paying VAT IOSS payments in the EU?
Under the VAT IOSS scheme the seller collects the VAT from the purchaser at the time of the payment for the sale. These payments need to be sent in EUR to the EU state tax agency in which the seller is registered for Vat IOSS. For US & Canadian companies this can mean expensive foreign exchange and international wire charges on a monthly basis.
We have streamlined this process, so that US and Canadian companies can make their payment in USD to a US based bank, so it will be a domestic wire in USD. We then manage the complete process for the payment of the Vat to the EU tax agencies.
To get started and work with the leading EU Vat service provider on VAT IOSS provider for North American companies use the contact form below: