What are the requirements of IOSS Registration in Ireland?
As of July 1, 2021, the European Union (EU) has implemented significant changes to its Value Added Tax (VAT) regulations. All businesses doing distance selling across borders to EU countries and those exporting directly to EU consumers will be affected.
Because low-value goods up to €22 were exempt from VAT, there were abuses, and some states lost tax revenue as a result. From July 1, 2021, the exemptions are no longer in effect.
As a result, from now onwards, companies should be able to conduct business in the EU with fewer procedures and less paperwork.
How can Non EU businesses can take advantage of this program?
All businesses selling goods in the EU are subject to the IOSS regime if the consignment value of the goods is less than €150. For Example:
The gadget cover costs €60 and is ordered by John from France from a company based in the UK. John will be charged (60 euros + 19 percent) by the UK company because the German VAT rate is 19 percent. It costs €71.4 to pay the invoice. John will receive the product without any delays after it is shipped from the UK. As the consignment value is less than €150, there will be no customs duty on this transaction.
In Ireland, UK is a member of IOSS. As a result, that company of UK will file its IOSS report at the end of the month and will pay the VAT owed to the Irish tax authorities (Revenue).
Hence, German tax authorities will receive VAT from revenue.
Is it necessary to have a European company in order to register with IOSS?
Ideally establishing an entity in the EU will be advantegous however, a non EU business can trade in the EU through an intermediatory IOSS. A number of UK, US, Indian and Chinese companies have entrusted us with the registration and management of their monthly IOSS returns in Ireland.
In Ireland, how much time is required for the registration of IOSS?
This process should take no more than four weeks, but depending on authorities, it could take up to six weeks. When working with government agencies, it is expected that it will take a bit of longer time as we also inform our clients in the beginning.
Is it true that IOSS sales are duty-free?
The IOSS applies to sales with a consignment value of less than €150, but they are exempted from Custom Duty.
Does IOSS registration is required for UK companies?
After Brexit, UK companies are no longer included in the EU’s goods VAT zone. IOSS registration will be required for UK companies that supply customers in the EU.
It is mandatory for UK-based companies to designate a Tax Intermediary/Fiscal Representative, and this service is provided by TAS Consulting.
Do I require the services of an IOSS intermediary or fiscal member in Ireland?
It is necessary to appoint an intermediary in order for companies that are not based in the EU to be able to use the import One Stop Shop. Intermediaries will also be required for companies that are located in a third country with which the EU has not signed a VAT mutual assistance agreement.
The EU has already entered into VAT Mutual Assistance Agreements with Norway. It is unnecessary to appoint a tax intermediary in Ireland if Norway is your country.
Later on, more countries might be included in this list by the relevant authorities.
UK companies need to appoint a Tax Intermediary/Fiscal Representative. Nathan Trust provides this service.
In Ireland, TAS Consulting can serve as your fiscal representative.
Can you reclaim any EU VAT expenses under IOSS?
In any EU country, companies registered under the IOSS are not allowed to deduct VAT expenses. The IOSS is designed to make the payment of VAT easier, not to allow for retrieving of VAT expenses.
What kind of records must be preserved?
All transactions must be documented in detail by the company’s representative. For a period of 10 years, this information must be kept in the record by the company:
- The Member State of consumption to which the services are supplied
- The service type which is supplied
- The exact date when the services were provided
- The tax amount indicating which country’s currency is used
- Any subsequent increase or decrease in the amount which is taxable
- The applicable VAT rate
- The amount of VAT due which provides the indication that which currency was used
- The date and amount when the payments were received
- Any payments on account received prior to the provision of services
- The address on which the invoice is issued and the information which is provided on the invoice
- The exact information shows where the customer resides.
UK company’s IOSS registration in Ireland
Companies from the United Kingdom can register with the IOSS in Ireland if your company is based in the United Kingdom and needs to register for IOSS.
You should choose Ireland as your IOSS registration location because of these reasons:
- In the EU, Ireland is the only English-speaking nation
- Similar tax and legal systems to the United Kingdom
- Similar business-friendly environment to that of the United Kingdom.
Who we serve:
These services are provided by us as a registered tax agent in Ireland:
- Tax intermediary/fiscal representative for your company by registering for IOSS in Ireland
- Monthly IOSS returns filed by your company
To meet all of your IOSS needs, we offer a full-service solution.
If you need assistance registering for IOSS, feel free to contact TAS Consulting
Call us on +353 (0)1 442 8230, 00353 851477625 or email moh@tasconsulting.ie