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Frequently Asked Questions

If you want to return goods outside the EU using FedEx, a new FedEx AWB will need to be created with a reference to the old AWB included in the description field and clearly marked as a return shipment.

Goods returned and shipped out of the EU will qualify for a VAT refund. Please provide KPMG with the necessary information using the data template and KPMG will adjust your IOSS return accordingly.

As mentioned above, if IOSS is not used, VAT is due upon importation of the goods and will need to be collected by the customs declarant, e.g. FedEx Express, who will recover this VAT cost from the customer or from you, depending on the shipping terms. Additional handling fees may be due. An additional VAT compliance burden may also arise if the seller sells goods under DDP terms.

For shipments which are handled by FedEx, please visit fedex.com for further detail.

Low value goods which qualify for the IOSS are goods in shipments whose intrinsic value at import does not exceed EUR 150 (except products subject to excise duties).

Intrinsic value means the price of the goods themselves when sold for export to the EU. The price should exclude transport and insurance costs (unless they are included in the price and not indicated separately on the invoice), and exclude any other taxes and charges which can be proved to the customs authorities from any relevant document.

Where goods sold are paid for in a currency other than the Euro, you should always make the calculation at the time of supply in order to determine whether the sale of goods can be declared under the IOSS.

To avoid any potential issue at importation due to exchange rate fluctuations, we recommend that you should indicate on the invoice accompanying the shipment the price in EUR, as determined at the moment of acceptance of payment.

The exact requirements for the IOSS registration are not yet published by the relevant tax authorities. Please come back to this page later for more information.

KPMG will also design a questionnaire which will be available on the Portal to collect the necessary information required from you for your IOSS registration.

After successful registration, you will be able to download a data template from our Portal. You need to provide to us your sales (including returns) data regarding the eligible transactions in the required template on a monthly basis. KPMG will prepare the IOSS return for your review.

The IOSS VAT return will contain the total value of the goods sold, their VAT rate and the total VAT amount to be paid, broken down for each EU Member State where the goods are transported to, as well as broken down in terms of standard and reduced rates.

Upon your approval, KPMG will then submit the return.

You will need to submit a monthly IOSS return to the tax authorities in the country of identification (registration). The deadline for submitting your IOSS VAT return is the end of the calendar month following the reporting period.

The deadline for these payments is the end of the month following the reporting month, the same as the return deadline. As you are established outside the EU, you are registered through a VAT intermediary. You should make a monthly payment of VAT due as declared in the IOSS VAT return to the VAT intermediary at least a few working days prior to the payment deadline as instructed. The VAT intermediary will make the payment to the Member State of registration on your behalf.

No, IOSS can only be used for B2C sales of eligible goods.

The UK left the EU VAT regime on 31st December 2020. At the same time, the UK withdrew its £15 low-value consignment relief and introduced a new VAT-at-point-of sale regime (similar to the EU’s IOSS regime) for goods imported into the UK with a shipment value not exceeding £135.

For sales to EU consumers, British resident sellers are now considered as non-EU residents. From 1 July 2021, they will be able to use the EU IOSS as non-EU sellers, for sales of eligible goods which will be imported into the EU.

Once you have subscribed to the KPMG services, you will be assigned a dedicated KPMG account manager who will answers your questions regarding the IOSS registration and the compliance process. You can contact your account manager by email or telephone in the following languages: English, German, French, Spanish, Italian and Chinese.

The KPMG services are provided by KPMG directly to you. You will enter into a services agreement with KPMG that is separate from the agreement you have with FedEx Express or TNT. If you sign up for the KPMG IOSS solution, KPMG will then become your IOSS compliance service provider, independent from FedEx Express and TNT. You can only appoint one VAT intermediary for all relevant shipments to the EU, and the VAT for all your B2C shipments to the EU will need to be submitted via the KPMG portal, regardless of which carrier you use.

The information provided does not, and is not intended to, constitute legal and/or tax advice; instead, this information is for general informational purposes only. This information may not constitute the most up-to-date legal or other information. Readers of this information should contact their own advisor to obtain advice with respect to any particular legal and/or tax matter. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.