Without much ado, the answer is no. Although they are both related to cross-border eCommerce, IOSS (Import One-Stop Shop) and ICS2 (Import Control System 2) are two separate systems with different purposes.

Import One-Stop Shop (IOSS)

IOSS is a simplified VAT payment system that was introduced in the EU in July 2021. It allows businesses to register, collect, and remit VAT on sales of goods valued at up to €150 to customers located in the EU through a single online portal, instead of registering for VAT in each individual Member State where their customers are located. IOSS is designed to make it easier for businesses to comply with VAT obligations and for customs authorities to collect VAT revenue.

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READ MORE: ICS2 and the Importance of Submitting Accurate Data
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Import Control System 2 (ICS2)

ICS2, on the other hand, is a system that was introduced on March 15, 2021, to facilitate the electronic processing and exchange of information on goods entering the EU customs territory. It is used to perform risk analysis and to determine which consignments require further inspection or control measures. ICS2 also facilitates the electronic submission of entry summary declarations for goods brought into the EU.

Main Differences In Summary

• IOSS applies to all distance sales of goods that don’t exceed €150, while ICS2 applies to all goods entering the EU.
• IOSS is mainly used by eCommerce traders selling goods to EU-based customers from third countries, while ICS2 requires Economic Operators to submit an Entry Summary Declaration (ENS) to the customs authorities electronically before the goods arrive at the EU borders.
• IOSS provides information on the value of goods, the VAT rate applied, and the amount of VAT collected, while ICS2 requires information on the goods, their transport, and the parties involved in the shipment.
• IOSS requires sellers to register and pay VAT on a monthly basis, while ICS2 requires Economic Operators to submit an ENS at least 24 hours before goods are loaded onto the transport vehicle.

Failure to comply with IOSS may result in penalties and fines, while failure to comply with ICS2 may result in delays and additional costs associated with physical or documentary checks.

So while IOSS and ICS2 are both related to cross-border eCommerce sales within the EU, they serve different purposes. IOSS is focused on simplifying the VAT payment process for businesses, while ICS2 is focused on enhancing the security of the EU’s external borders by enabling customs authorities to monitor goods entering and exiting the EU.

At My Duty Collect, we understand the challenges of cross-border eCommerce compliance in the European Single Market. That’s why we offer solutions for both IOSS and ICS2 to help businesses stay compliant and simplify their cross-border eCommerce operations. Whether you’re an established eCommerce business or just starting out, we can help you navigate the complex regulatory landscape of cross-border eCommerce in the European Single Market.

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