Import One Stop Shop (IOSS) FAQs
Import One Stop Shop (IOSS) FAQs
When did IOSS come into use?
From 1 July 2021. Registration has been available since 1 April 2021.
Is using IOSS mandatory?
No, you can opt to continue to use DDU services with Royal Mail – or opt into using the forthcoming DDP solutions if you don’t want to use IOSS. However, Royal Mail has a range of IOSS options to suit customers with different needs – including registering yourself.
Are there any restrictions to using IOSS?
IOSS is a solution to manage VAT payment. Items over €150 attract customs duties as well as VAT and these are not covered by IOSS. Customers need to send items of this value and over via DDU or DDP services.
IOSS also does not cover Excise Goods – these are usually things like alcohol and cigarettes. These items, where not restricted, should be sent via other appropriate services which allow them.
What are the basic requirements of IOSS?
If you are registering your business for IOSS yourself
- Resister for IOSS in one of the EU countries (member states). Customers choose which country
- You will need to use an intermediary service based in the EU to do this
- Display the amount of VAT to be paid by the EU buyer when the ordering process is finalised
- Collect VAT from the EU buyer on eligible destined for an EU country
- Use IOSS for items with a value not exceeding €150
- Submit electronic monthly VAT return via the IOSS portal of the country where you are registered for IOSS and make a monthly payment of the VAT declared to that country
- Keep records of all eligible IOSS sales for 10 year
- Provide the IOSS number for customs clearance to Royal Mail as part of electronic pre-advice.
If you don’t want to register yourself independently for IOSS and would like some help
If you would prefer to concentrate on selling items, we have two excellent options available for customers, where you can use one of our trusted partner solutions – Deloitte or Taxamo.
How long does it take to register for IOSS yourself?
It can vary but we’d recommend allowing at least four weeks.
How do I register with Deloitte for their solution?
All the information for this can be found on Deloitte’s landing page.
How do I register with Taxamo for their solution?
All the information for this is available on Taxamo’s landing page.
Am I restricted to which RM products/codes I can use IOSS with?
Yes – IOSS is only available on International non-personal correspondence core product codes (see below)
What are the core contract business account International product codes for non-personal correspondence?
|Parcel||Parcel Code||Large Letter||Large Letter Code|
Intl Bus Parcels Zero Sort Lo Vol Priority
International Standard Sort 2
|Intl Bus Mail L Letter Country Sort Lo Vol||DG4|
|Tracked & Signed||Intl Bus Parcels Tracked & Signed Country Priced||MTE / MTF||Intl Bus Mail Tracked & Signed Country Priced||MTG|
|Tracked||Intl Bus Parcels Tracked Country Priced||MP7 / MP8||Intl Bus Mail Tracked Country Priced||MTK|
|Signed||Intl Bus Parcels Signed Country Priced||MP9 / MPO||Intl Bus Mail Signed Country Priced||MTO|
What are the core online postage account International product codes for non-personal correspondence?
|Online Business Account
|Tracked & Signed||OTC||ITSOLP|
Can I use IOSS on legacy products?
No, but all International Business Service customers will have had the new core product codes uploaded to their accounts at the start of May so you can move to using them if you choose to.
Can I use IOSS on all versions of the API?
No, IOSS only operates on the new core products which are only available on v3 of the API.
Can I use IOSS on OBA?
No – IOSS only operates on the new core products which are only available on shipping solutions.
I pay for my postage via a franking meter. Can I use IOSS?
No – international postage is only available through franking meters for items of personal correspondence. These do not require the provision of customs data. IOSS is for the sale of goods which is not personal correspondence and so cannot be paid for through a franking meter as the necessary customs data and IOSS number cannot be provided. We recommend that you use Royal Mail Click & Drop.
How do I provide Royal Mail with my IOSS number?
In order for IOSS to work we need you to allocate the correct IOSS number to each item (parcel) you send to the EU.
- For orders made through your own website you need to provide us with your IOSS number if you have registered for one.
- If you are using Taxamo Assure, you register with them and provide us with Taxamo’s IOSS number.
- If you are selling via a Marketplace, then you will use their IOSS number when shipping items via Royal Mail.
- If you do not have an IOSS number (either one you have registered for/received from Deloitte), a Marketplace one or one from Taxamo Assure, it’s not possible to use IOSS through Royal Mail and items will be sent Delivered Duties Unpaid (DDU). This means the recipient will be asked to pay VAT and a handling fee before the item is delivered.
- How you provide an IOSS number to us depends on which systems you use to provide RM with pre-advice data.
What format should I add my IOSS number when sending goods via Royal Mail?
The IOSS number is used to electronically check all due tax has been paid and it is important that you add it in correctly when sending goods via Royal Mail. You may have your own IOSS number, be using a marketplace IOSS number, or you may be using the Taxamo – ‘pay as you go’ solution. In which case you should use the Taxamo IOSS number, that they will provide you with. Every IOSS number is a total of 12 digits. It should always start with ‘IM’ and then be followed with 10 numbers with no spaces, e.g. IM0123456789. Key in the number in this format to ensure that it is recognised.
How do I add my IOSS number with Click & Drop?
In Click & Drop IOSS numbers can be added to your masterdata in the pre-registration scheme number field in trading names. This applies whether you’re selling through your own website, using your own IOSS number or are using Taxamo Assure IOSS number in that field. You can then select from the IOSS enabled core product codes (non-personal correspondence) and process orders as usual.
- If you only sell through one marketplace then you can add the marketplace’s IOSS number to the pre-registration scheme number field.
- If your marketplace is integrated with Click & Drop (Amazon, eBay, ETSY, NOTHS), you don’t need to do anything as the IOSS number will be automatically populated.
- If you are selling through your own website and also via one or more marketplaces or selling via multiple marketplaces then you can integrate the marketplace(s) with your Click & Drop account and the relevant IOSS numbers will automatically flow through to your orders on that trading name.
- Where you have not integrated the marketplace with your Click & Drop account or you’re using a marketplace we don’t support via Click & Drop integration, you can set up separate trading names, one for each marketplace you use and then enter the appropriate IOSS number for each marketplace. You must then remember to raise orders against the right trading name account so that the right IOSS number flows through with the item.
- If you are using Click and Drop as a ‘guest’ you will be able to select the marketplace your sale was made via or enter your own IOSS number, or Taxamo’s IOSS number.
See Click & Drop - Step by Steppdf, 1.02 MB
How do I add my IOSS number with Pro-Shipping?
The relevant IOSS number needs to be present at the item level detail.
See Pro Shipping - Step by Steppdf, 1.02 MB
How do I add my IOSS number with Pro-Shipping- Bulk Import?
See Pro-Shipping - Bulk Import - Step by Steppdf, 1.02 MB
How do I add my IOSS number with Pro-Shipping- API v3?
See Pro-Shipping - API v3 - Step by Steppdf, 1.02 MB
Which field does the customer provide the IOSS number in?
The IOSS number (customer’s own or Marketplace number) is entered into the Importer tax code field as part of electronic pre-advice.
Do I need to be electronic customs data compliant to use IOSS?
Yes – IOSS requires completion of the required/mandatory electronic data fields.
Do I still need to provide CN22/23 documents?
Yes – the requirements are to provide both electronic data and documents for all items of non-personal correspondence.
Do I need to provide a commercial invoice?
It is not currently mandatory to provide a commercial invoice but it’s increasingly recommended to do so.
Which are the EU countries included in IOSS?
IOSS is available to all EU member states except Czech Republic and Romania (until further notice). They are Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France (including Corsica), Germany, Greece, Hungary, Ireland, Italy (including Sardinia & Sicily), Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal (including Madeira & the Azores), Slovakia, Slovenia, Spain (including Balearic Islands) and Sweden.
NB. Since we understand Czech Republic and Romania have not yet implemented the EU eCommerce rules, items valued up to €22 may be delivered without VAT being collected irrespective of the IOSS status of the sender. Items valued above €22 may have VAT collected from the recipient along with a handling fee. When completing your IOSS VAT return it is important to check the latest position as to whether VAT is due on sales to these destinations.
It is not available to Mount Athos, the Canary Islands, Faroe Islands, the Åland Islands, Greenland, the Channel Islands, Campione d'Italia, the Italian waters of Lake Lugano, the Island of Heligoland, the territory of Büsingen, Ceuta, Melilla, Livigno, Antilles, San-Marino, Gibraltar, Andorra, Vatican City and the French territories of Guadeloupe, French Guiana, Martinique, Réunion, Saint-Barthélemy, Saint-Martin, Mayotte.
Will there be any changes to labels for IOSS items?
A small IOSS logo will be visible on labels – although this is there, for us and for the majority of postal authorities, this is not the way we/they will identify IOSS items as that is done via the IOSS number provided in pre-advice data.
Do I need a landed cost calculation for all IOSS solutions?
If you’re registering yourself or using the Deloitte solution, a landed cost calculator integrated into your checkout is necessary.
If you’re using the Taxamo solution, it isn’t and they will manage calculation and filing of tax for you.
What if I need help with the landed cost calculation?
There are a range of landed cost calculation facilities available. We have a partnership arrangement with a company called Hurricane who provide a landed cost calculator called Aura. Click here for further details.
If I am a UK seller who only sells on a marketplace, how do I use IOSS?
Under IOSS, if a UK seller is selling to EU customers through a larger marketplace, the marketplace takes on the responsibility for VAT. This means the UK seller does not need their own IOSS number/registration and instead uses the IOSS number belonging to the Marketplace they’re selling through. This applies to all items below the value of €150 and items over the value of €150 are liable for customs duty which is not covered by IOSS (a VAT system).
If I am a UK seller who sells direct and sells through a Marketplace, what do I need to do?
If a UK seller sells both via a Marketplace and directly (via their own website), then they will need an IOSS solution for the direct sales they make. Taxamo is likely to be a solution for their direct sales stream. Royal Mail is making some changes to Click and Drop to help sellers who sell both directly and via a Marketplace to enable them to use more than one IOSS number.
Which Marketplaces are already signed up to use IOSS?
Marketplaces we’re aware are already registered (or in the process of registering) for IOSS include Amazon, eBay, ETSY, NOTHS, with more expected to follow by 1 July.
How do Royal Mail charge for IOSS solutions?
There is no charge for customers using your own IOSS number with Royal Mail.
For customers who don’t want to register themselves for IOSS, or want someone else to take responsibility for registering, calculating tax and filing tax returns we have two solutions which will be delivered via trusted partners Deloitte and Taxamo. The billing for those solutions is done directly between the partners and customers. It is not part of Royal Mail billing or invoicing.
Deloitte’s solution offers to register UK customers for IOSS, provide them with an IOSS number and prepare and file annual tax returns. IOSS registration is a one-off fee of £300 plus an annual fee of £2,000 for preparing and filing annual tax returns.
Taxamo operate a ‘pay as you go’ solution ideal for smaller customers who want a hassle-free way to continue to send goods to EU consumers without having to invest lots of time and resource in meeting the new requirements. For this, the UK customer pays a £2 fee per item, on top of their regular shipping costs. The £2 per item fee is paid directly to Taxamo and not Royal Mail. The customer continues to pay their normal shipping cost to Royal Mail for their existing services (core products only).
Do I still have to pay any handling fee for items sent using IOSS, like when using DDP?
No. IOSS items do not incur handling fees as DDU items do.
Where can I find out more information about IOSS generally?
The EU has information available for UK sellers about IOSS. You can find this here.
Here is the UK Government Guidance on these changes.
How can I find out more about customs data requirements for IOSS?
All the information customers need to know is available online via this link.
For further details about IOSS and how Royal Mail can help, please visit our main Import One Stop Shop (IOSS) page.