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Switching VAT registration to IOSS

This page is for customers who wish to switch some or all of their existing EU VAT registrations to IOSS.  

What is IOSS?

The EU’s Import One-Stop Shop (IOSS) scheme is part of its 2021 ecommerce VAT reforms package that aims to simplify compliance across the trading bloc. IOSS allows businesses based outside the EU to sell into all 27 member states with a single VAT registration. The scheme applies to goods being sold online into the EU with a total consignment value not exceeding €150. Read more about IOSS

To use IOSS, businesses based outside the EU may need to appoint an EU-resident VAT intermediary. This is a type of VAT agent that shares responsibility for returns submissions and VAT payments.

If your business is able to take advantage of the new scheme, we are happy to switch your VAT returns to IOSS and ensure that you stay compliant during the transition period. Avalara will manage your IOSS registration, file your returns, and provide a VAT intermediary service (if required). We will also deregister your business in jurisdictions that are no longer needed. Your business will be registered for IOSS with the French tax office.
 

How will the process work?

  1. Sign up: Contact your account manager who will provide a quote and answer any outstanding questions you have. Avalara is moving to subscription payment so you may be asked to set up a monthly Direct Debit which will cover IOSS and any other services connected to your VAT returns filing. Once you have signed the sales order we can begin the application process.
  2. Background check: As your VAT intermediary, we must perform a background check on your business (unless we have done this for you recently, e.g. for Avalara Fiscal Representation). You will need to complete a questionnaire about your business and send us some documents. It will take us about two weeks to approve your suitability once we have your information.
  3. IOSS registration: Registering for IOSS is straightforward but we will still need to gather some information from you. You will need to complete a short questionnaire to provide the information required to allow us to submit your application to the tax office. It currently takes around a week to obtain an IOSS VAT number, although this may change. In the meantime we will continue to file using your existing VAT numbers. 
  4. Payment account: As part of the intermediary service, Avalara will be responsible for paying your VAT bills to the tax office. That means you will need to make payment to Avalara’s account every month (Chinese businesses will use a LianLian Pay account). You will be advised of the amount you need to pay in the filing portal, and payment must be received by the 14th of the month. 
  5. Deregistration of obsolete VAT numbers: Once you have your new IOSS VAT number we may be able to close some of your existing direct VAT registrations in EU jurisdictions. We must wait until your IOSS VAT number is active to do this.
  6. Filing IOSS VAT returns: The way we handle your filing activity will not change. You will see the monthly IOSS return in the filing calendar in your online account, and your transaction data can still be supplied using the AvaTemplate. 

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