How to handle IOSS double taxation?

At EAS Project, we understand the complexities of navigating IOSS regulations and the potential for double taxation issues. Rest assured, our platform is designed to simplify IOSS compliance and help you avoid these challenges. In this guide, we’ll discuss double taxation scenarios and how EAS Project empowers you to resolve them efficiently.

Understanding Double Taxation with IOSS Shipments

Despite having a valid IOSS number, your customer might still be charged VAT upon delivery due to temporary customs glitches or data discrepancies. This can lead to frustration and additional costs for your customers. Let’s explore the solutions and proactive measures you can take to mitigate these issues.

The EAS Project Advantage: Streamlined IOSS Management

Verified IOSS Numbers: We ensure your IOSS number is valid and registered with the Estonian Tax Authorities. Regular checks guarantee its functionality, so you can be confident that your shipments are compliant.

Data Accuracy Optimization: Our platform configures your store to collect all necessary data as part of our standard service, ensuring that all information is accurate and up-to-date. This reduces the risk of discrepancies that can lead to double taxation.

Data Corrections: EAS Project’s in-depth knowledge of relevant issues helps clear up deficiencies in logistics software data retrieval and interpretation, ensuring smooth and accurate customs processing.

Seamless Customer Communication: We provide clear instructions and support for your customers facing double taxation, helping them understand the situation and how to resolve it.

What to Do if Your Customer Encounters Double Taxation

Contact EAS Project Support: Our dedicated team will investigate the issue and advise on the best course of action to resolve it promptly.

Gather Documentation: Collect proof of the double payment, including customs receipts and IOSS number confirmation. This documentation is crucial for making corrections and claims.

Utilise the EAS Dashboard: Our user-friendly dashboard allows for easy manual VAT corrections. Detailed instructions are available here.

Reimbursement for Erroneous Fees: If the issue originates with your logistics provider, EAS Project can assist you in the claim process to recover any erroneous fees. We recommend refunding your customer for the full amount, including the fees, to maintain good customer relations.

Proactive Measures to Prevent Double Taxation

Accurate HS Code Input: EAS Project assists with ensuring accurate HS code classification for your products, facilitating smooth data transfer to logistics partners. This helps prevent issues related to missing or incorrect HS codes.

Logistics Software Integration: We optimize integration with your chosen logistics software to minimize data-related issues. Ensuring your IOSS number and other relevant data are correctly input can prevent many common problems.

Regular Communication: Maintain open communication with your logistics provider and ensure they have all the necessary IOSS data. Inform them of any issues promptly and work together to resolve them.

Frequently Asked Questions (FAQs)

Is my IOSS number invalid? Unless you have instructed your Intermediary to cancel it, your IOSS number is valid. As an EU-based company, you can cancel the IOSS number yourself if needed.

How can I check if the IOSS number is valid? You can always ask your Intermediary or check the validity in your tax administration portal if you are an EU company.

Can I check the validity of a random IOSS number? No, IOSS numbers are not public data and cannot be checked randomly.

What can I do to make sure IOSS shipments go through as intended? Ensure your IOSS number is correctly input to your logistics partner or software and that all necessary data, including HS codes, is available.

I had the IOSS number printed on the invoice and VAT was charged. What now? Customs data is transferred electronically in the EU. Never expose your IOSS number on your packages. Printing the IOSS number anywhere exposes you to risk. Contact your logistics provider to address any data discrepancies.

Should I give my IOSS number to a customer who is asking for it to avoid paying VAT again? Sometimes you can provide the IOSS number directly to customs through your logistics provider. If all else fails, ensure the customer understands the importance of the IOSS number and its proper handling.

Conclusion

Together, we can minimize the risk of double taxation on IOSS shipments. By leveraging EAS Project’s robust platform and expert support, you can ensure a seamless IOSS experience for your business and happy customers. Stay proactive, stay informed, and rely on EAS Project to navigate these challenges efficiently.