Does a UK e-commerce business need an IOSS Intermediary when selling to the EU?

26 March 2023

On 1 July 2021, the European Union (EU) introduced its new e-commerce VAT reform, allowing sellers to no longer pay import VAT at clearance on low-value consignments. Instead, sellers can opt to charge customers VAT at the point of sale via their own website. This means that sellers will charge VAT at their customer's own country’s VAT rates and will report and pay this via the Import One-Stop-Shop (IOSS) VAT return.

To use the IOSS, non-EU sellers must appoint an IOSS intermediary. This is a taxable person established in an EU country who is responsible for declaring and paying VAT on behalf of the non-EU seller. The intermediary also becomes jointly liable for any VAT owed by the seller on these types of transactions. 

Fiscal Solutions can act as your IOSS intermediary, helping your business register and prepare and submit your IOSS returns.

As the UK is no longer part of the EU, UK companies are considered non-EU companies and therefore require an intermediary for IOSS purposes. However, due to the mutual assistance clause in the Brexit Trade and Cooperation Deal, some EU countries are now stating that the intermediary obligations are optional for UK businesses who should be able to register themselves via the UK tax authorities. An example of this is Italy, which has confirmed no IOSS intermediary is required for UK companies, despite the European Commission officially stating that an intermediary is required for UK companies.

If you’re unsure whether you require a VAT intermediary to register for the IOSS, complete the form below.

E-commerce VAT

READ MORE

Import One-Stop-Shop (IOSS)

READ MORE
LATEST NEWS

Morocco introduces VAT on e-services for non-resident...

From 14 February 2024, Morocco introduced VAT at 20% on the sale of digital services by non-resident providers to local consumers.  Previously, foreign...

SEE MORE
VAT news
LATEST NEWS

Polish Ministry of Finance issues new National...

The Polish Ministry of Finance recently announced a round of nine public consultations ahead of a newly proposed July 2025 launch date of KSeF B2B e-invoicing...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Belgium confirms the introduction of mandatory...

During February 2024, the Bill legislating for mandatory B2B e-invoicing in Belgium was gazetted, confirming the introduction of an e-invoicing regime from 1...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.