The Import One Stop Shop (IOSS) is an optional EU scheme that streamlines how VAT is collected on low-value goods—specifically, items worth €150 or less—sold to customers within the European Union. For online sellers, it means faster customs processing and quicker deliveries, since taxes are handled before the goods reach their destination.
Australian businesses that sell to EU customers can register for IOSS to simplify VAT compliance. While participation isn’t mandatory, choosing not to register means your buyers will need to pay VAT upon delivery, which can result in added delays and extra handling by customs.
By using IOSS, you collect VAT from your customer at the point of purchase through your website or sales platform. This prepayment allows the parcel to clear customs more efficiently once it arrives in the EU, without additional charges or paperwork for the buyer.
If you’re not registered under IOSS, customs authorities will hold the shipment until the VAT is paid by the recipient, often leading to slower delivery and a less seamless buying experience.
For more information on how to register for IOSS, you will need to contact a VAT specialist. There are numerous companies to be found online by a simple google search for "VAT services Australia"