How does IOSS work?

IOSS allows for EU VAT to be collected and simplified vat filing and reporting.

1. The seller must register for IOSS in an EU country.

2. The seller provides the IOSS number for their trusted logistics partner.

3. EU consumer pays the full landed cost, i.e., merchandise, shipping, taxes, and other fees at the time of checkout.

4. The logistics companies have a simplified process for importing the shipment to the EU thanks to IOSS

5. The consumer receives the shipment without additional processes.

6. The seller files monthly a single EU sales IOSS report to the tax office of their registration.

7. The seller pays the total EU VAT due to the tax office of their registration.

8. The tax office distributes the VAT to other EU member states based on the IOSS report.