From 1 July 2021, the special procedure Import OSS (IOSS) came into force. It applies to distance sales of imported goods originating outside the European Union, the total value of which in a consignment does not exceed €150 and which are not subject to excise duty.
The extension of the IOSS to sales of goods imported from third countries will require electronic registration for VAT purposes and the declaration and payment of the VAT due in a single electronic monthly return in a single Member State, the ‘Member State of identification’.
The ‘Member State of consumption’ is referred to as the country of destination of the consignment.
Those companies that do not have a permanent establishment in one of the Community countries and that apply the simplified procedure may use the services of a so-called intermediary who will be responsible for submitting VAT-IOSS returns on their behalf, obtaining a tax number, as well as fulfilling all the obligations incumbent upon the taxpayer.
E-commerce VAT payment and VAT IOSS procedure
Businesses that have registered for the import procedure and sell imported goods remotely are obliged to collect VAT from buyers and settle it with the tax office. A taxpayer using the VAT IOSS procedure is obliged to send VII-DO return on a monthly basis. VII-DO returns shall be submitted only electronically, by the end of the month for the previous month. If no sale took place in a given month, a taxpayer should send the so-called zero return.
Similarly as in the case of OSS, payment of due VAT shall be made by the end of the month following the end of the period to which a given return refers.
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