Important Update: IOSS Validation Issues
We’re providing an update on two ongoing issues that may impact your IOSS shipments:
Once an IOSS number is issued it is available for all EU customs to check if it is valid. Unless you have instructed your Intermediary to cancel it or you, it is valid. Full. Stop. So the problem is: your customer is being demanded VAT and often ridiculous amounts as fees by your logistics operator.
Sometimes the logistics operator / customs are ok if you provide them with the IOSS number, sometimes they insist on the customer to provide it. Please find a way to provide the number without disclosing it to 3rd parties – which the customer is in this case. Avoid if you can.
But since your goods are absolutely best and wanted around the world, your customers often pay the ransom to get the goods. We don’t have an absolute solution for you on how to handle the second VAT paid by the customer. We recommend refunding the customer for the full amount, including the fees. You can correct the IOSS VAT report via EAS Dashboard, instructions here: https://help.easproject.com/hc/en-us/articles/9358065950237-Manual-VAT-corrections. Do save the documentation on double payment, in case of audit they will be checked.
And then there is the erroneously corrected fee part. If you have correctly input the IOSS number to the logistics partner or software, you should be able to get the fees reimbursed by making a claim with them. At least they will have to investigate the issue.
And that is the start of the most important part: the mishandled IOSS shipments CANNOT overlooked, they have to be fixed.
One known issue you can affect is, that some logistics operators will not take the IOSS data if HS code is missing. There is no legal backing for the operating model, but the logistics companies can be very stubborn. Unfortunately it is not sufficient to make sure you have the HS codes for your products, you will also have to make sure the HS code can be passed on to the logistics solution you are using.
The second issue is the transfer the IOSS number from your logistics software along to the logistics operators. Unfortunately size or reputation do not guarantee a seamless data management. To begin the process of making sure this is the last time this occurs, contact your logistics software provider. So your claim to the software / first mile logistics provider will begin this process.
Everyone involved is learning. But, there will always be issues. We can make them rarer with each claim.
Unless you have instructed your Intermediary to cancel it, it is valid. As an EU based company, you can cancel the IOSS number yourself.
Yes, you can always ask your Intermediary. An EU company can check in their tax administration portal.
No. IOSS numbers are not public data.
Customs data is transferred electronically in EU. Never expose your IOSS number on your packages. Printing IOSS number anywhere only exposes you to risk.
Sometimes there is a way for you to provide the IOSS number directly to the customs, do try at least. And if nothing else works, then just make sure the customer knows the importance of the IOSS number.
Navigating the world of EU trade and IOSS compliance is made more accessible with the support of Royal Mail and the expertise of EAS. By leveraging Royal Mail’s reliable shipping services and integrating your online store with Click & Drop, you can provide a seamless shopping experience to your European customers.
Don’t get us wrong, taking advantage of the new EU tax regulation is not obligatory. But not taking advantage of it is like saying you don’t want to sell to everyone in EU
Would access to 445 million potential customers increase your season sales?
EAS Solution is a VAT and customs specialist and SaaS provider. Our mission is to resolve EU regulatory challenges for e-commerce actors and logistics operators
EAS has been awarded with AEO status by World Customs Organisation
AEO status is a certified standard authorisation issued by customs administrations in the European Union (EU). It certifies that an economic operator has met certain standards in relation to:
