IOSS is applicable only to physical goods, OSS for goods and services, and Non-Union OSS only for electronic goods and services sold from outside the EU. IOSS and OSS schemes, and IOSS and non-Union OSS can be used simultaneously.
The shipping costs and other incidental costs are handled exactly the same as the goods/services sold, with VAT applied to them.
EAS applies the following rules for accounting for shipping costs:
- All shipping costs are calculated on item level. Single shipping cost is weighted on the physical
items in the order, shipping costs are not applied to downloadable if they are sold in the same
order with physical goods;
- Irrespective of the VAT scheme (IOSS, OSS, non-Union, domestic sale) EAS applies the VAT rate
to shipping costs which is applied to the underlying item. Thus, if in the sales order one item has
reduced VAT rate applied during landed cost calculation the respective part of the shipping cost
will be subject to the same VAT rate.