Import One-Stop-Shop - IOSS in the Netherlands
As of July 1, 2021, the exemption from value added tax (VAT) for the import of goods with a value of less than EUR 22 will no longer apply. The one-stop-shop system for imports (IOSS) was created to enable and simplify the declaration and payment of VAT on the distance selling of imported goods with a value of less than EUR 150.
What is IOSS?
The IOSS is the one stop shop for importing goods into the EU, active since 2021. The IOSS helps sellers declare and pay the VAT on their goods. This makes it easier for the buyer, who only has to pay VAT at the time of purchase. The buyer is not charged any additional fees when the goods are delivered. If the seller is not registered with IOSS, the buyer must pay VAT and customs clearance fees which are usually charged by carriers when importing goods into the EU.
When does the IOSS apply in the Netherlands?
The IOSS covers the distance selling of goods which: are shipped or transported from outside the EU at the time of sale; are shipped or transported in consignments of a value not exceeding EUR 150; are not subject to excise duties (usually excise duties on alcohol or tobacco products).
On which sales does the IOSS apply?
The IOSS covers the distance selling of goods which meet the following 3 criteria:
1. are shipped or transported from outside the EU at the time of sale;
2. are shipped or transported in consignments of a value not exceeding EUR 150;
3. are not subject to excise duties (usually excise duties on alcohol or tobacco products).
How does this work for me as a seller of goods into the EU?
If you are a seller who has registered for the IOSS, you must charge VAT on sales of goods that will be delivered to a buyer in an EU Member State. The VAT rate is the rate that is applicable in the EU member state where the goods are to be delivered. For example, if the goods are to be delivered in the Netherlands, you would normally charge the customer 21 percent VAT.
Steps to successfully use the IOSS
If you use the IOSS, you must do the following:
- Show the amount of VAT that the buyer will have to pay in the EU, at the latest when they finish ordering;
- collect VAT from the buyer on the delivery of all eligible goods that have an EU Member State as their final destination;
- make sure that only eligible goods with a value of no more than EUR 150 are sent in a single shipment; display the price paid by the buyer in EUR on your invoice, whenever possible.
- submit an electronic monthly VAT return at the IOSS portal of the Member State where you are registered for the IOSS.
- make a monthly payment of the VAT as indicated in the return to the Member State where you are registered for the IOSS.
- keep records of all eligible IOSS sales for 10 years.
- provide information required for customs clearance in EU, including your IOSS VAT identification number, to the person declaring goods at EU border.
Exceptions to the IOSS
There are some circumstances where you do NOT have to charge VAT on the distance selling of imported goods:
For example, if you sell several goods to the same buyer and these goods are sent in a package with a value of more than EUR 150, then the goods will be taxed when they're imported into the EU Member State.
Another example is if the distance selling of goods is facilitated by an electronic interface such as a marketplace or platform. In this situation, the platform is responsible for charging and paying VAT.
How to register for the IOSS in the Netherlands?
You can register your Dutch business at the Belastingdienst.
In short: If you sell products to people in other European Union countries, you have to calculate the VAT for that country. This is usually the case with ecommerce. You also have to pay for and arrange the transport yourself. However, if the value of your imports is less than €150 per shipment, you can use the import scheme. This means that you don't have to declare VAT to the tax authorities of other EU countries. You will still have to report and pay this VAT every month, but you don't have to pay VAT when importing the goods. You do this through the IOSS portal of the country your business is registered in.
We can help you register and report in the IOSS portal in the Netherlands
The Netherlands has one of the most well-developed e-commerce infrastructures in the world. Even more than in other Western European countries, Dutch people are extremely used to buying goods and […]Read More
The BV is a limited liability company and preferred legal form for foreign entrepreneurs in the Netherlands. That is because the BV is flexible, easy and affordable to set up. On top of that, the overall tax pressure on a BV in the Netherlands is one of the lowest in Europe. Finally, your BV will shield you from personal liability of your company’s actions, debt and bankruptcy.Read More