IOSS Deadline and Payment Process
IOSS Deadline & Payments
Since July 1st, suppliers selling goods from a third country to EU customers can register for the Import One-Stop Shop. The Import One-Stop Shop (or, IOSS) can only be used according to certain guidelines.
For example, goods (excluding goods subject to excise duty) must be dispatched by or on behalf of suppliers from outside of the EU at the time they are supplied. Additionally, the intrinsic value of the consignment must not exceed €150. Although IOSS is not mandatory and requires some consideration in its set up, the benefits for suppliers will include:
- Registration in one Member States for all supplies within the scope of the IOSS made across the EU.
- The reporting and remittance of all import VAT, within the scope of the IOSS, due across the EU in one monthly return
- The charge of VAT at the applicable rate at the point of sale to the consumer so no import VAT charge at the point of importation.
The VAT due on the supply is then declared and paid by the supplier or their intermediary. This can be done via the monthly IOSS return in the Member State where the taxpayer has registered.
The return has to be filed by the end of the following month. It must also contain a breakdown of the total VAT amount to be paid in each Member State.
IOSS Payments – Using an Intermediary
So how are payments actually made if you have appointed an intermediary?
The payment transfer has to be set up by the intermediary in their online IOSS account. In Ireland, for example, your intermediary may set up a Debit Instruction in your IOSS account within their TAIN ROS account. Once set up, the payment due will be automatically deducted from your bank account, transferred to the Irish Revenue Commissioners. They will then manage the onward remittance to other EU Tax Offices.
If using an intermediary, the payment set up has to be done by the intermediary. You will not have the facility to make the payment directly.
All payments for IOSS should be transferred in Euro. Where supplies have been made using a currency other than the euro, the exchange rate to be used is that published by the European Central Bank on the last day of the calendar month to which the VAT return relates. If there is no publication on that date, the rate on the next day of publication is to be used.
The deadline for filing and payment of your IOSS declaration is the last day of the following month – so for the reporting period July 2021, the filing and payment deadline is 31 August 2021. Just a reminder also that a taxable person using the IOSS cannot deduct VAT incurred through the IOSS VAT return.
Instead, any VAT incurred in a Member State of consumption can be refunded under Directive 86/560/EEC (13th Directive) or Directive 2008/9/EC (8th Directive). If a taxable person is required to be VAT registered in a Member State for taxable activities outside of the scope of the IOSS, then any VAT incurred in that Member State in respect of supplies made under the IOSS can be deducted through the normal VAT return submitted to the tax administration of that Member State.
Stay Up to Date
For over 25 years Taxback International has been a world leader in VAT consultancy and compliance providing expert support to more than 12,000 global clients including Apple, Google, IBM, and Twitter. With increasing digitalization of global tax processes, we have developed tailored technology solutions to solve challenges facing companies today.