Sellers need only register for IOSS in one EU country (typically handled by an intermediary service provider or tax representative) to prepay VAT on all eligible e-commerce parcels upon entry, eliminating the need to register for a VAT number in each individual destination country. 

If you sell goods valued under €150 per order from China via your own website or platforms (like Amazon) to France, Germany, or Italy, using an Italian IOSS account (e.g., applied for through an Italian compliance agency, as Italy offers relatively efficient registration), you won't need to register for VAT individually in countries like Germany, France, Poland, or Spain. Instead, you can file monthly VAT returns through the IOSS system to the German tax authority, and the data will be automatically transmitted to other member states via the EU system.

What is IOSS?

IOSS stands for “EU Import One-Stop Shop.” This system, launched by the EU on July 1, 2021, simplifies cross-border e-commerce sales and reduces VAT evasion. It specifically handles declarations for distance sales of low-value goods imported into the EU from outside the bloc.

Advantages of IOSS Registration

1. Facilitates VAT Collection, Reporting, and Payment

IOSS helps sellers engaged in distance sales to EU buyers better collect, report, and pay VAT on imported goods. This is particularly crucial for distance sales, especially goods imported from third countries or regions, ensuring correct VAT collection.

2. Streamlined Procurement Process

IOSS registration simplifies procurement by eliminating unexpected charges upon delivery. All fees are paid at the point of purchase, enhancing transaction transparency and convenience.

3. Expedited Customs Clearance

IOSS enables customs authorities to release goods swiftly without requiring upfront VAT payment upon import, facilitating rapid delivery to customers.

4. Streamlined Logistics

Regardless of the final destination within the EU, goods can be imported through any member state, simplifying logistics and avoiding additional costs.

5. Price Transparency

Customers see the total price and pay all applicable taxes upfront during purchase, eliminating unexpected charges upon EU import and enhancing customer experience.

6. Reduced Compliance Burden

Sellers can use a single IOSS number to declare and pay VAT for all sales covered by the IOSS system, eliminating the burden of registering for VAT numbers in multiple countries.

IOSS Applicability Scope

Goods Value: The intrinsic value of goods per shipment (excluding shipping costs) must not exceed €150.

Goods Type: Goods not subject to excise duties (e.g., standard alcoholic beverages or tobacco products are excluded).

Shipping Origin/Destination: Goods shipped from outside the EU to buyers within the EU.

Sales Model: Primarily B2C distance sales.

Note: IOSS is suitable for independent website/self-built platform sellers and logistics providers, as most cross-border platforms provide IOSS numbers and offer withholding, payment, and declaration services.

What documents are required to register for IOSS?

① Business license

② Legal representative's ID card/passport

③ Registration application form

④ Independent website link or e-commerce platform store information

Application Steps and Considerations

1. Confirm Necessity of Application

Platform sellers: If selling through major platforms like Amazon or eBay, the platform typically provides an IOSS tax number directly. You may not need to register independently.

Independent website/self-shipping sellers: If shipping goods directly from outside the EU to EU consumers via your own website (e.g., Shopify) or offline channels, you must register for an IOSS tax number independently.

2. Select Registration Country and Appoint Tax Representative

As a non-EU entity, you must appoint a “tax representative” (e.g., Zhuoxi) within the EU to assist with registration and subsequent filings.

You may register in any EU member state, typically prioritizing countries with favorable tax policies and efficient registration processes, such as Italy.

3. Submit Application and Fulfill Ongoing Obligations

Once documents are prepared, submit the application through your tax representative on the official tax portal of your chosen member state. Review typically takes one week.

After obtaining the VAT number, you must file monthly VAT returns and remit payments by the end of the following month. Additionally, clearly mark the IOSS VAT number on both the shipping label and the commercial invoice accompanying the goods. Failure to do so may result in customs clearance delays.