Problem: Temporary failed IOSS Validation issues at EU Customs.

There have been recent cases of IOSS validation failures at EU Customs, causing temporary disruptions in the smooth flow of goods, and could lead to your customers being asked to pay VAT upon delivery

Please note that this is a temporary issue and steps are being taken to address and resolve the failed IOSS validation problems. Businesses are advised to liaise with their customs agents and carriers to ensure compliance with IOSS requirements and to minimise any potential delays or complications in customs clearance.

We understand that this may cause inconvenience, but rest assured that the European authorities are working diligently to rectify these issues and ensure a seamless process for eCommerce businesses in Europe. Stay updated with the latest information provided by the EU customs authorities to ensure a smooth and compliant transition for your business

Customs: “Your IOSS number is not valid”

If your customer receives a notification from customs stating that their IOSS number is not valid, it is important to check with your Intermediary to ensure that everything is in order. As an EAS customer, you can rest assured that everything is indeed okay.

What’s Happening?

It appears EU customs are experiencing significant difficulties with authentication of IOSS numbers, resulting in requests from your customers to pay VATs for the second time and full customs fees. This seems to be due to temporary access problems to the central database, but we do not have certainty about the root cause. In some customs the IOSS number is verified after a few days and few attempts, but we do not have information whether it works the same everywhere

Double Taxation Issues for EU Consumers

Due to the ongoing IOSS validation issues at EU customs, EU consumers may face double-taxation. This means that they might be asked to pay VAT for the second time, in addition to the full customs fees. It is important to note that this is a temporary situation caused by access problems to the central database at EU customs. While some customs may verify the IOSS number after a few days and attempts, it is not guaranteed to be the same everywhere. We understand that this can cause inconvenience for both businesses and consumers. Follow these instructions on how to correct your reports in case of double taxation.

What This Means for You

The main concern is that your customers might be presented with a VAT and customs fee invoice when their package arrives. Here’s what you need to do:

• Hold off on sharing the IOSS number with your customers. The customs will often make such requests despite the risks it exposes you to. Disclosing it exposes you to misuse risks and wouldn’t solve the validation issue in any case, please refrain from providing the IOSS number to your customer.
• Advise your customers: Let them know about the temporary glitch and that they shouldn’t pay any VAT or customs fees at delivery. Instruct them to politely ask the carrier to retry the IOSS number. By now, carriers should be aware of this issue.
• IOSS number validity: As EAS customer, your IOSS number is 100% valid. As IOSS Intermediary we would have knowledge if anything would have happened to your IOSS status, and if we have not terminated the number it is valid. .A certificate of validity from the Estonian tax administration unfortunately will not have any effect on how the troubled customs treat the shipment. Official request can take up to 3 weeks, we can take a screen capture about the IOSS status for you much faster to ease your mind.

Resolution

We anticipate this issue to be resolved soon. We will keep you updated through our blog and newsletters, and provide further guidance as soon as it becomes available. Unfortunately we do not have an established channel with the EU customs, and they are commonly not known as being transparent.

If your customer ends up paying the VATs and customs fees, you should reimburse them at least for the VATs. You can make a manual correction via EAS Dashboard for the reimbursed VATs, no-one expect them to be paid twice. You have to request the invoices from your customers in order to do so. You have to provide those documents with the correction. Full instruction here: https://help.easproject.com/how-to-correct-vats-manually-in-eas-dashboard

If you can, also return the funds on the customs fee, they are an unpleasant surprise to your customer. You will likely not be able to retrieve the customs fee from your carrier partner, unfortunately, as they have acted on orders from the customs.

What to Do if a Customer Contacts You

• Acknowledge the problem: Let them know you’re aware of the temporary IOSS validation issue and are working towards a solution.
• Reassure them: Explain that they shouldn’t be responsible for VAT charges and the carrier should retry the IOSS number until successfully validated.

We apologise for any inconvenience this may cause. If you have any questions, please don’t hesitate to reach out to our team. We appreciate all information on the matter, such as where the validation is failing.

We’re here to help you navigate this temporary hurdle.

Temporary IOSS Validation Issues FAQ

Here are some frequently asked questions about the temporary IOSS validation issues at EU customs:

What is the issue with IOSS number validation at EU customs?

EU customs are experiencing difficulties verifying IOSS numbers, which may result in customers being asked to pay VAT upon delivery, even if the IOSS number is valid.

Why are customers receiving notification that their IOSS number is not valid?

Customers may receive this notification due to the temporary access problems to the central database at EU customs. However, as an EAS customer, your IOSS number is valid.

Will customers face double taxation because of this issue?

Yes, due to the IOSS validation issues, EU consumers may face double taxation. They might be asked to pay VAT for the second time, in addition to full customs fees.

How can businesses correct reports in case of double taxation?

Follow the instructions provided here to learn how to correct your reports manually in the EAS Dashboard.

What should businesses do to minimize the impact on their customers?

• Hold off on sharing the IOSS number with customers, as disclosing it does not solve the validation issue and exposes businesses to misuse risks.
• Advise customers about the temporary glitch and instruct them not to pay any VAT or customs fees at delivery.
• Inform customers to politely ask the carrier to retry the IOSS number.

Is the IOSS number still valid for EAS customers?

Yes, as an EAS customer, your IOSS number is 100% valid. If any changes occur to your IOSS status, we, as your IOSS intermediary, will have knowledge of it.

Will a certificate of validity from the Estonian tax administration help?

No, unfortunately, a certificate of validity from the Estonian tax administration will not have any effect on how customs treat the shipment. Official requests can take up to 3 weeks. We can provide a screen capture of the IOSS status much faster to ease your mind.

How can businesses reimburse customers if they end up paying VAT and customs fees?

If customers have paid VATs and customs fees, businesses should reimburse them at least for the VATs. Manual corrections can be made via the EAS Dashboard. Invoices from customers will be required for the reimbursement.

Is it possible to retrieve the customs fee from the carrier partner?

It is unlikely that businesses will be able to retrieve the customs fee from the carrier partner, as they acted on orders from customs.

What should businesses do if a customer contacts them about this issue?

• Acknowledge the problem and assure customers that you are aware of the temporary IOSS validation issue and are working towards a solution.
• Reassure customers that they should not be responsible for VAT charges and that the carrier should retry the IOSS number until it is successfully validate