Have you been affected by the changes to VAT rules governing consumer sales into the EU? Have you registered for the IOSS scheme or have you decided that the costs outweigh the benefits? Find out more about how your insights can help the MIA lobby government and shape future policy.
On the 1st July, the EU introduced the OSS (One Stop Shop) portal as a new way to help Resellers track and declare VAT on consumer user sales across all member states. The idea being that a Reseller would register in a single country and collate the details of all cross-border transactions completed within the EU into a single declaration and remittance.
There is no doubt there are benefits for those countries within the European Union, but for those third countries (such as the UK post-Brexit) it is somewhat more complicated. The IOSS scheme or Import One Stop Shop, is the solution for resellers in countries outside of the Union and whilst it is similar in principle, it is more complicated and limited in scope.
We have heard many examples, across many sectors that resellers are turning away from cross-border sales because the costs of doing business are simply outweighing the benefits. Whether it is down to the loss of the small package exemption or the cost of hiring an intermediary, the figures for many smaller businesses just aren’t adding up.
The MIA has been working as a member of the Independent Retail Consortium to gather the experiences of tens of thousands of small independent resellers and present a clear picture to Government of the challenges of schemes such as IOSS.
The next meeting scheduled for the IRC is with the Minister for Small Business Paul Scully in late August and we would like to provide as much data as possible prior to that meeting. If you have been touched by this issue and have a few moments to spare, please complete the following short survey.