IOSS Questions and Answers


This page contains questions and answers related to IOSS.

The EU VAT Import One-Stop Shop (IOSS) page has information about setting up the system if you are supplying goods to the EU and the IOSS Technical Information page contains the technical information including about couriers.

Overview

The Import One-Stop Shop (IOSS) is the electronic method of submitting your VAT e-commerce obligations on distance sales of ALL goods imported into the EU, and has been live since 1 July 2021, see European Commission - IOSS for more details.

Questions?

If you have any questions not answered by this document, then please email our training team who will collate all queries relating to EU VAT so that we can provide answers to common questions by updating this wiki page.

Questions and Answers

The following questions have been asked from our customers and the answers added below.

Reports and Filters

Is there a report that will tell me which countries we have sold to in any given month?
There is currently no report, but there are plans to create an SQL report once there is more information about what the report should contain.

Accounts - Tax (VAT) tab - the drop down menu for country lists all countries. We need a separate drop down for just the 27 EU countries.
There are no plans currently to create a dropdown list for the 27 EU countries to separate them out from the RoW countries.

Country Specific VAT Rates

Do I need to setup Country Specific VAT Rates for IOSS
Yes, you will need to setup the Country Specific VAT Rates yourself for the countries you are shipping to. The Country Specific VAT page has details about How To: Setup Country Specific VAT and How To: Use Country Specific VAT Rates.

We highly recommend you do this on Test first.

INFORMATION icon
You can turn on and setup Country Specific VAT in your Live system as long as:
  1. No EU orders are imported or created while it is enabled and you are configuring the rates.
  2. You are not already using Country Specific VAT for one or more EU countries.
  3. Once you are ready to start processing/creating/importing orders again:
    1. Untick the Force Country VAT checkbox in System Data.
    2. Turn off Country Specific VAT in System Values.
  4. Once you are ready to enable this you will need to reverse the previous two changes.

We highly recommend you do this on Test first.

Do Country Specific VAT Rates only need to be setup for each country and Level 2 Stock Type, or does each stock item need to be setup individually?
Once the rate has been applied to Level 2 Stock Types then it will apply to EU sales orders with those items on specific to the country the items are for.

What about my website and the changes, how will it work?
For your website your Web Developers will need to ensure that they are taking the correct payment for the goods sold, for example, if you are sending the Gross price down, then Khaos Control will calculate the VAT for the individual countries providing you are using Country Specific VAT.

However, if you are not currently using Country Specific VAT, then you have two options:

  1. You will need to configure Country Specific VAT prior to the new changes coming into effect. This will need to be turned on, on the day it is applicable (we are currently working on a feature that will allow you to do this) , or
  2. Pass this onto the customer by letting the customs of the customer's country handle the tax.

150 Euro Threshold

As we will only have to collect VAT for orders under 150 Euros, Khaos Control needs to have a threshold that triggers the zero rate for EU orders over that number?
The 150 Euro threshold is handled automatically within Khaos Control as part of the changes we have now made. VAT will only be calculated on orders over 150 if you are registered for VAT in that Country. To meet the IOSS requirements our Country VAT facility needs to be activated, and a default rate per country can now be defined without the need to configure country rates against stock records. Then against each country, you can choose to specify a VAT number, if you do so you are indicating that your are registered for VAT in that country and as per the Table above, VAT will be collection on orders over 150 Euro (by default) for orders over the threshold where you are also registered for VAT. If you do not specify a VAT number then EU VAT will only be calculated on orders under 150 Euros.

Intermediaries and Agents

We are looking at asking an intermediary to assist us with our VAT compliance and they would require a VAT download into a specific template format. Is this something that KHAOS are able to provide?
This is not something that we have been asked about, but it maybe something that might be developed later once all the requirements are known and understood.

One of the requirements for IOSS is that the data for the IOSS sales is sent to the VAT agent in Europe on a weekly basis. Their requirement list is much like the data that is exported to DPD to get a parcel through customs, including quantities of items and commodity codes etc. Is there a way in Khaos to be able to export this IOSS sale data as a CSV file for example? As soon as we have a suggested format for providing this information we will be able to publish a Report which can be deployed to most systems to extract this information. At this time we do not have this information so we do not have a Report or facility to accommodate this requirement, but as new information is received we will do our best to add it.

To use IOSS we need to register with a EU country and probably appoint an agent, do you have any suggestions as to an agent to approach or the best country to register with?
We can’t recommend any agents, this is something that you will have to investigate.


See Also

Visit KhaosWikiX at https://support.khaoscontrol.com/wiki_kcx/ to see the following:

Contact the Khaos Team