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.