IOSS Explained: Simplify EU VAT on Imports with Irish Registration

What is IOSS? 

The IOSS allows a taxable person to register in a single Member State to declare and pay European Union (EU) import VAT. The IOSS can only apply to certain supplies.

The import One stop shop or IOSS, allows businesses to simplify the declaration and payment of VAT on imported goods throughout the EU, where the IOSS is availed of, Customs do not collect the import VAT due. The import VAT is, instead, remitted through a monthly IOSS return.

Consumers will pay the VAT due on the goods at the point of sale. Consumers will therefore avoid any further tax or customs charges upon delivery of the goods.

Who needs to register for IOSS in Ireland? 

IOSS is relevant for both EU and non-EU companies

If you sell and ship products valued under €150 to EU residents, then you need to register for IOSS. The IOSS can be used to declare and pay the import VAT due where:

• The goods in question are located outside the EU at the time they are sold

• The goods are dispatched in consignments of an intrinsic value not exceeding €150

• The goods in question are not subject to excise duties.

Ireland is a great option to use to register for IOSS, as we are an English-speaking country, and we have a very business-friendly environment here.

Once you register your company for IOSS in Ireland, you can then ship goods anywhere in the EU and process the VAT payments through your Irish IOSS account.

As an example, you can ship goods to an EU resident in the Netherlands, charge them VAT at 21%, you then pay this VAT through your Irish IOSS account. The Irish tax authority then distributes this payment to the tax authority in the Netherlands

What is the rate of VAT OSS?

Irish VAT-registered traders must charge the VAT rate which applies to the supply in their customer’s EU member state. 

How might VAT OSS impact my business?

Without the IOSS Scheme, traders would be required to register in each Member State in which they supply goods or services. The OSS scheme is optional to traders; however, if a trader registers, it must be applied to all supplies falling under the scheme in all relevant Member States.

A nil return must be submitted if there is no activity during the month. Traders may face potential penalties from the Member State of Consumption if a return is not filed or a payment is made late. The Member State of Consumption can apply charges or interest, or penalties according to national law.

What are the filing obligations and deadlines? 

The IOSS returns are filed on a monthly basis and are due on the last day of the month following the end of each period. For example, the April 2025 IOSS return would be due for filing and payment by May 31^st. 

How can Nathan Trust help?                      

We can assist you with:         

• Obtaining an IOSS number in Ireland.  

• Advising on which VAT rate to charge.

• Acting as an IOSS intermediary. IOSS

• Preparing and filing IOSS returns.