What does AliExpress IOSS mean? Do AliExpress sellers need to register an IOSS number?

What is Import One-Stop Service (IOSS)? What exactly is IOSS? What impact does it have on cross-border e-commerce sellers?

I believe that many seller friends are still confused.

What does AliExpress IOSS mean?

Import One Stop (IOSS) is an electronic portal that companies can use from 2021 July 7 to fulfill their VAT e-commerce obligations on long-distance sales of imported goods.

IOSS is actually a new type of VAT declaration and payment system launched by the EU to ease the pressure on customs clearance of low-value goods.It simplifies the relevant procedures, mainly for low-priced goods B2C sales of imported goods.

How does IOSS affect AliExpress sellers?

So why use IOSS?

• In a word, prices are more transparent, customs clearance is faster, and logistics are simpler.

Price transparency

• The customer has paid the full cost of the item (including tax) at the time of purchase.
• Customers no longer have to pay unexpected fees (VAT and additional customs clearance fees) when goods are imported into the EU, which can greatly improve the customer experience and reduce returns.

Fast customs clearance

• IOSS is designed to enable customs authorities to quickly release goods without paying customs duties and import VAT, facilitating fast delivery of goods to customers.
• If the seller is not registered with IOSS, the buyer must pay the VAT and customs clearance fees usually charged by the carrier.

Simplify logistics

• In addition, IOSS also simplifies logistics, goods can enter the EU, can be released for free circulation in any member state, and freight forwarders can declare imports in any EU country.
• If IOSS is not used, goods can only be cleared at the final destination.

Note: For imported goods with an intrinsic value exceeding EUR 150, the current VAT policy will still apply after July 2021, 7.

Do AliExpress sellers need to register an IOSS number?

IOSS one-stop reporting system:

For Amazon, AliExpress, Yibei and other sellers selling on FBA platforms (that is, those who have built a warehouse in the EU), the platform will provide one-stop tax declaration to OSS, and the sellers on the platform do not need to care; the platform will provide the one-stop service When filing tax returns, sellers who have a VAT number will continue to make declarations, and those who are withheld and paid do not need to pay taxes.

There are sellers who are independent websites or EU companies, and those who open a warehouse in the EU need to register the OSS tax declaration system by themselves, complete the declaration and pay taxes and fees by themselves.Registering for OSS one-stop tax declaration requires a VAT number from any EU country to register.

IOSS import one-stop declaration system:

For Amazon, AliExpress, Yibei, etc. whose warehouses are located outside the EU, such as China, self-delivery sellers, the value of the small package does not exceed 150 euros, the platform will make IOSS tax declaration and IOSS identification number for the seller, and the seller will also No need to register with IOSS. (Specifically how Amazon gives the identification number, we have to wait for Amazon's operation after 2021.07.01)

If you are a seller of an independent website or an EU company, if you open a warehouse outside the EU, such as China, the value of the product does not exceed 150 euros, you need to register the IOSS import one-stop tax declaration, the seller declares and pays taxes and fees.

Sellers of e-commerce platforms or independent stations or EU companies, with warehouses outside the EU, and shipments exceeding 150 euros, do not need to declare tax on IOSS, the seller can ship the goods through the previous channel, and then declare by the freight forwarder. Pay import tax (please consult the freight forwarder for details).