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EU Customers: Import One Stop Shop (IOSS)

As of July 1, 2021, all member EU countries require compliance with the importation of physical goods from third countries (such as Canada). VAT will be applied to all e-commerce transactions. IOSS is designed for transactions under €150 (shipping, insurance, permits, etc do not count). Those above the €150 threshold (£135 in the UK), international customers are still obliged to pay customs duties upon importation into the EU.

Most importantly, what does that mean to you, our EU customer? Customers avoid paying additional taxes and customs fees and will greatly appreciate this transparency. As a result, IOSS webshops show the products at the total price (including VAT) and not have to pay custom clearance fees and a higher VAT. Being a transparent, standardized system, IOSS-registered goods will speed through customs.

Customers who shop through a non-registered supplier will lose a lot of time trying to get their shipments past the border.

We are currently looking for an EU established low cost IOSS intermediary that has all the bells and whistles higher priced IOSS intermediaries offer. I think we might have found one. They charge a flat fee, which means no surprises for you or me. If I read their services correctly, they also assist in the quick passage through customs on goods/orders greater than €150.

In one price structure example, the costs were compared with an IOSS registered seller vs a non-registered IOSS seller of a €10 item. Under the IOSS scheme, the costs of the item plus VAT (21%) was €12.10. Cost of the same €10 item with a non IOSS registered seller there is a custom clearance fee (€15) and an import VAT was over €30. Not nice.

Once we understand the details, we will register and get this ball rolling. There is a low monthly fee for the service regardless of use. I hope to continue shipping to the EU.

I appreciate any thoughts and feedback from our EU customers.