IOSS Number: UPS & EU VAT/UK Sellers

What Is an IOSS Number?

An import one-stop shop number, or IOSS number, is a special identification number that companies use to meet EU VAT requirements when selling products to customers in EU member states. As part of the EU’s VAT e-commerce package, it was implemented on July 1, 2021, to streamline VAT collection for cross-border business-to-consumer sales of low-value goods (up to €150). Sellers can collect, report, and remit VAT at the point of purchase with the help of the IOSS number, saving purchasers from incurring extra import VAT or handling costs when their packages arrive.

When exporting to customers in the EU, the IOSS number is particularly crucial for UK-based vendors because it expedites delivery and prevents customs delays. The IOSS enables sellers to submit all VAT through a single return through an EU intermediary, rather than registering for VAT in each EU nation. Marketplaces and sites like eBay, Discogs, and AliExpress, which frequently require IOSS registration for smooth transactions, will find this very helpful. All things considered, utilising an IOSS number guarantees regulatory compliance throughout the EU and improves the client experience.

What Does It Mean for Sellers?

An IOSS number entails direct VAT payment at checkout for UK online sellers. As a result, the buyer is not required to pay VAT or customs duties upon delivery. It increases customer trust and expedites the process. An IOSS number UK, for instance, enables you to charge VAT at the point of sale if you’re a small UK company selling phone cases to Germany. Following that, your items can swiftly clear EU customs without incurring additional fees for the customer. Therefore, for any UK merchant having clients in the EU, the IOSS number for shipment is crucial.

Why Is an IOSS Number Important for UK Businesses and Buyers?

The UK IOSS number system is essential because it speeds up shipments, prevents additional costs for clients, and makes compliance easier. Many merchants have encountered issues with customs since the UK’s exit from the EU. The answer to that is the IOSS number. The buyer believes that when VAT is included in the price, they won’t be surprised by additional costs. Repeat business and satisfaction are increased as a result. IOSS number registration is already integrated into the seller systems of platforms such as eBay and AliExpress. IOSS numbers give sellers a competitive advantage. They provide quicker shipment and clear pricing. Conversions and client loyalty are boosted by these advantages, particularly in the very competitive EU market.

How Do You Get an IOSS Number and Register It Properly?

You must first register with the tax authorities of an EU member state to receive an IOSS number, or if your company is headquartered outside of the EU, you must designate an IOSS intermediary. Since the UK is no longer a member of the EU, companies operating in the UK must register through an approved EU intermediary. On your behalf, the intermediary manages the VAT reporting and compliance obligations. Business information such as your EORI number, VAT number, contact details, and a description of the items you plan to export must be provided.

A unique IOSS number will be assigned to you upon registration, and this number must be used on all qualified shipments that are valued at €150 or less. Sellers are able to collect VAT at the moment of sale and report it on their monthly IOSS VAT return with this number. Ensure that your shipping partners, like UPS or Royal Mail, see this IOSS number so they can electronically submit it to customs. Buyers can avoid additional VAT or handling fees at delivery by accurately using the IOSS number.

Can You Check the Validity of an IOSS Number?

Yes, companies are able to use the customs systems to verify an IOSS number. Unlike VAT numbers, IOSS numbers are not made public. If a vendor gives you an IOSS number, you can ask the website (such as eBay or AliExpress) to verify that it is legitimate.

Only IOSS numbers obtained through authorised IOSS number registration procedures should be trusted. It can be a false or improperly used IOSS number if a merchant claims to have one and customs nevertheless charges you VAT.

Here is an IOSS number example format:

Although it might not be apparent to the customer, sellers on websites like as eBay, AliExpress, and Discogs frequently have their IOSS contained in electronic records.

How Does the IOSS Number Work on eBay, AliExpress, and Discogs?

For websites like eBay, AliExpress, and Discogs, the IOSS number makes it easier to collect VAT when selling to customers in the EU. When a seller submits their IOSS number at checkout, these platforms charge VAT at the moment of sale. This helps consumers avoid unforeseen costs or delays at customs. For instance, VAT is collected up front and sent to the appropriate EU tax office when a UK seller offers items on eBay for less than €150 and gives their IOSS number. Customers benefit from easier and more transparent cross-border shopping as a result.

The marketplace itself may serve as the IOSS middleman on sites like Discogs and AliExpress. In some cases, the seller does not require their own IOSS number because the marketplace computes and pays VAT automatically. This solution complies with EU VAT regulations while shielding vendors from administrative hassles. To avoid VAT issues at customs, a seller must register for an IOSS number if they decide to ship independently or outside of a supported marketplace.

What Is the Role of UPS and Other Couriers?

For packages involving IOSS numbers for shipping, UPS and other international couriers are essential. Customs officials are informed that VAT has already been collected at the moment of sale when a seller adds a valid UPS IOSS number on a package headed for the EU. This makes it possible for customs clearance to go more smoothly, saving the buyer money and time. The IOSS number is used by UPS and comparable couriers to electronically disclose import VAT and guarantee precise adherence to EU laws on low-value items.

The UPS IOSS number is associated with the seller’s IOSS account and needs to be correctly included in the shipment paperwork, typically in the courier’s electronic data or commercial invoice. If this is done correctly, the parcel avoids double taxation, making the buyer’s experience more seamless. Couriers like UPS, DHL, and FedEx act as intermediaries, using IOSS numbers for shipping to streamline cross-border logistics, track VAT reporting, and meet compliance standards set by EU customs authorities.

Conclusion

For UK companies dealing with EU customers, an IOSS number is an essential tool. It increases trust, streamlines VAT collection, and enhances delivery. IOSS utilisation is the foundation of websites like eBay, AliExpress, and Discogs. UK vendors need to understand how to obtain an IOSS number, register it correctly, and use it for each shipment within the EU to remain compliant and competitive. It is essential to adhere to IOSS shipping regulations because of the role that couriers like UPS play. Your EU company runs the risk of delays, customs problems, and unhappy customers if you don’t have an IOSS number UK.

FAQs