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Posted Tue, 19 Jul 2022 08:59:30 GMT by vixopep418
Hello. I'm an artist and I run a small business that sells printed materials both in the UK and abroad. Since the implementation of the IOSS scheme one year ago, I've had to suspend orders to the EU. This is because the cost of applying for IOSS in an EU country outweighs the revenue from my EU business. It's annoying trying to explain to my customers why I can ship a product 4,000 miles away to a Caribbean island but can't throw one across the channel. I even have friends who have gone through the trouble of registering for IOSS in the EU only for orders to be VAT doubled charged on arrival or retuned. Presumably because other EU countries haven't figured out their own IOSS infrastructure to deal with this nonsense. So why is there still no option to apply for IOSS in the UK? Is the UK actively trying to stifle small business? The UK government claimed they were working on a UK portal, but that was a year ago and nothing has changed. Sort it out.
Posted Tue, 19 Jul 2022 13:00:34 GMT by Customs oldtimer
As posted in a previous thread It is not compulsory to register for the EU IOSS scheme if you wish to send goods below €150 to non VAT registered customers in the EU- It is is an option / simplification that non-EU based businesses can choose to use. It still remains possible to for you to send goods of any value to the EU with either: - the end customer paying the import VAT ( & duty if applicable) due at import. - or if you didn't want the customer to pay directly you can use a couriers delivered duty paid service- in this way the fees would be collected from you as the seller. Presumably this is what you already do for customers in other countries to pay their local taxes and import duties. I am not an HMRC representative nor a politician however I understand that until there is an agreement with the EU on whether UK business can register for the EU IOSS scheme in the UK as well as the EU, HMRC are unable to make a portal available unilaterally
Posted Fri, 22 Jul 2022 07:52:17 GMT by HMRC Admin 20
Hi vixopep418,

We are sorry to hear you are having difficulties trading with the EU.
The Import One Stop Shop (IOSS) is an optional scheme and GB businesses that choose to register for IOSS can do so in any EU Member State. However, as the IOSS scheme is an EU system, with use and access governed by EU law, businesses that opt to use IOSS in the EU will need to follow EU guidance which sets out what this means for GB businesses and the requirement to appoint an EU-established fiscal representative.

The UK continues to push the EU commission on the issue of fiscal representatives to agree that this condition should not apply to the UK under the terms of the ‘Protocol on Administrative Cooperation and Combatting Fraud in the Field of Value Added Tax and on Mutual Assistance for the Recovery of Claims relating to Taxes in Duties’ included within the Trade and Cooperation Agreement (TCA). 

Businesses that choose not to opt for IOSS will still be able to continue to export goods to the EU, with any import VAT due in the EU continuing to be collected at the time of import from the recipient of the goods.

As part of the Government’s support offer to businesses, the Department for International Trade has set up an Export Support Service (ESS). Whilst the ESS cannot provide advice or guidance on EU Member State VAT rules, it can signpost UK businesses to published EU VAT guidance so that UK businesses can understand how and when VAT may be charged when goods are imported into EU Member States.

You can find further information on the ESS here:

Ask the export support team a question

Thank you.

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