由 caicai8478 Since July 1, 2021, the EU VAT system has undergone significant reforms, one core change being the elimination of the VAT exemption policy for imported goods valued below €22. This means that all commercial goods entering the EU, regardless of value, are subject to VAT.
This change has brought enormous challenges to Chinese cross-border e-commerce sellers who heavily rely on small parcel direct shipping. The import one-stop mechanism is precisely the EU’s compliant “fast track” tailored to address this challenge for low-value goods.
I. New Policy Challenges: A “Life or Death” for Small Parcel Direct Shipping
Before understanding IOSS, we must first understand what problems it aims to solve:
The End of the Tax-Free Era: In the past, small parcels valued below €22 could enter the EU tax-free, a core advantage for many sellers. Under the new policy, this “tax-free advantage” has completely disappeared.
Customs Clearance Bottlenecks: Without IOSS, hundreds of millions of low-value parcels would have to complete VAT declaration and payment individually upon entry. This will lead to:
Customs Clearance Delays: Each package requires tax processing, drastically reducing customs efficiency and significantly extending delivery times.
Poor Customer Experience: Upon arrival in the EU, consumers may be required to pay additional VAT and customs clearance fees charged by postal/courier companies before signing for the package. This easily leads to customer dissatisfaction and returns.
Uncontrollable Costs: Unforeseen customs clearance costs and logistics delays severely impact sellers’ cost control and sales stability.
II. What is IOSS?
IOSS stands for Import One-Stop Shop. It is a simplified VAT declaration and payment system for imported goods valued at no more than €150.
Core Logic:
“Tax at the Front End”: Sellers collect VAT from EU consumers at the time of sale (i.e., upon completion of the online transaction).
“One-Stop Declaration”: Sellers only need to register for IOSS in one EU member state and then declare and pay VAT for their remote sales in all EU member states through that country’s IOSS portal.
“Accelerated Customs Clearance”: Upon arrival, customs can quickly verify that the VAT on a package has been paid using the IOSS identification code, allowing for immediate release without any additional processing.
III. How does IOSS become a “fast track” for small parcel direct mail?
The IOSS process contrasts sharply with traditional customs clearance methods, its “speed” manifesting in:
- Ultra-fast Customs Clearance
With IOSS: The package declaration documents contain a unique IOSS number. The customs system automatically verifies this, confirming that the VAT has been processed, and releases the package immediately.
Without IOSS: Packages enter manual or complex review processes, awaiting tax payment, causing delays of several days or even weeks.
- Enhanced Customer Experience
With IOSS: Consumers pay the full amount (including tax) at checkout, enjoying a seamless “door-to-door” experience with no hidden fees. This directly improves conversion rates and customer satisfaction.
Without IOSS: Unexpected charges for the “last mile” are a major taboo in e-commerce, easily leading to order rejection, lost shipping costs, and lost customers.
- Simplified Compliance Process
With IOSS: You only need to file monthly or quarterly declarations in one country (such as Ireland, Germany, etc.) to cover such sales across the entire EU, without needing to register and declare separately in each of the 27 member states.
Without IOSS: For low-value goods, there is no unified declaration mechanism, resulting in a chaotic and inefficient compliance path.
IV. Core Rules and Applicable Conditions of IOSS
To use this “fast track,” you must strictly adhere to its rules:
Rule Dimension Specific Requirements
Goods Value: Intrinsic value at the time of shipment ≤ €150 (referring to the value of the goods themselves, excluding transportation and insurance costs).
Goods Type: Not applicable to tobacco products, perfumes, alcoholic beverages, and other goods subject to excise tax.
Sales Model: Only applicable to B2C sales directly from outside the EU to consumers within the EU.
Seller Obligations
- Register with IOSS: Obtain an IOSS number through the IOSS portal of an EU member state or through an intermediary.
- Display Prices: Clearly display all fees to the buyer at the time of sale, and separately list the amount of VAT collected.
- Collect Taxes: Collect the correct VAT rate of the EU destination country at the time of sale.
- Submit Declarations: Submit a VAT return monthly through the IOSS portal.
- Pay on Time: Pay the VAT payable to the tax authorities of the country of registration monthly.
Logistics Documents: The IOSS number must be clearly marked on customs declaration documents (e.g., CN22/23), otherwise the channel will be invalid.
V. Important Reminder: Intermediaries and Compliance Risks
Non-EU Sellers Must Use an Intermediary: Sellers without a company established in the EU (e.g., Chinese sellers) cannot register for IOSS directly. They must entrust a tax intermediary established in the EU (e.g., a professional tax firm, some logistics or platform service providers) to register and file on their behalf. This is mandatory.
Platform’s IOSS Role:
For sellers selling through the online marketplace, the platform is considered the seller under certain circumstances and is responsible for fulfilling IOSS obligations.
In this case, the platform will provide you with its IOSS number, which you need to provide to the logistics service provider for customs clearance.
If you are an independent seller, you must register and manage IOSS yourself (through an intermediary).
Compliance Risks:
False Declaration: Intentionally declaring high-value goods as less than €150 to use IOSS is a serious violation.
Missing/Incorrect IOSS Number: If the IOSS number is missing or incorrect on the shipping documents, the package will not enjoy expedited customs clearance and will be considered as having unprocessed taxes, leading to customs delays and additional charges for the customer.
VI. Summary: IOSS – A Must for Small Parcel Direct Shipping
For cross-border e-commerce sellers selling goods valued at ≤€150 to the EU, IOSS is no longer an option, but a must to maintain competitiveness under the new regulations.
It’s a Cost: You need to pay intermediary service fees and invest time in compliance management.
It’s an Investment: It’s an investment in customer experience, logistics efficiency, and brand reputation. It ensures your parcels reach customers as quickly and smoothly as before the reforms, allowing you to stay ahead in the fierce market competition.
Amidst the sweeping changes in the EU’s new VAT policy, IOSS serves as a robust bridge for the small parcel direct mail model. Utilizing this “fast track” effectively is crucial for long-term, sustainable development.