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

30 June 2021

From 1 July 2021, the EU’s new e-commerce VAT reforms will be introduced allowing sellers to no longer pay import VAT at clearance on low-value consignments but instead 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 a new Import One-Stop-Shop (IOSS) VAT return. 

To use the IOSS, non-EU sellers must appoint an 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.

As the UK is no longer part of the EU, most would assume that UK companies will be considered as 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 not required for UK businesses who should be able to register themselves via the UK tax authorities. An example of this is Italy, who have confirmed no IOSS intermediary is required for UK companies, despite the European Commission officially stating that an intermediary is required for UK companies.

This has created confusion and could leave some UK sellers in an awkward position as although HMRC has confirmed that it will introduce the IOSS system, it also stated that this will not be ready by the 1 July implementation deadline. 

If you’re unsure whether you require a VAT intermediary to register for the IOSS, contact us here. For more information on the IOSS, please click here.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

Get in touch

Let us solve your current business VAT challenges


Belgium to cut e-book VAT rate from 1 January 2022

From 1 January 2022, the Belgium tax authorities have confirmed that the VAT rate on the sale of e-books, e-manuals, e-newspapers, and e-magazines sold online...


Ukraine to apply VAT on digital services from January...

From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses.  At present, non-resident...


Lithuania cuts hospitality VAT to 9% until 31 December...

Lithuania will cut the VAT rate applicable to hospitality, sporting, and cultural services from the standard VAT rate of 21% to the reduced rate of 9%. To...


Gated Content

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