The peak season is here and it is definitely the best time of the year for retailers and online sellers, considering the high demands. However, it can be tricky to remain tax compliant, especially when selling to EU-based final consumers. Non-VAT IOSS compliance can be costly and result in serious penalties imposed by the EU’s tax authorities. Find out here how to avoid IOSS removal.

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READ MORE: IOSS – Overpayments of VAT
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Removal of the Taxable Person Not Represented by an IOSS Intermediary

A taxable person who is not represented by an intermediary will be removed from the IOSS where:

• They notify the Revenue Commissioners that they are no longer carrying out distance sales of goods imported from third countries.
• It can be assumed that this activity of the taxable person has ceased.
• The conditions for use of the IOSS are no longer met, or
• The taxable person persistently fails to comply with the rules of the IOSS.

Removal of the IOSS Intermediary

An intermediary can be removed from the register in the following circumstances:

• Where they have not acted on behalf of a taxable person for the IOSS for two consecutive calendar quarters

• Where they no longer meet the conditions necessary to act as an intermediary, or
• If they persistently fail to comply with the rules of the IOSS.

Removal of the Taxable Person Represented by an IOSS Intermediary

A taxable person who has appointed an intermediary to act on their behalf for the IOSS will be removed from the identification register in the following circumstances:

• If the intermediary notifies the Member State of identification that the taxable person no longer carries out distance sales of goods imported from third countries

• If it can be assumed that the taxable person has ceased to engage in distance sales of goods from third countries

• If the taxable person no longer meets the conditions for the use of the IOSS 

• If the taxable person persistently fails to comply with the rules of the IOSS, and

• If the intermediary notifies the Member State of identification that they no longer represent the taxable person.

The Penalties

Where a taxable person is removed from the IOSS for persistent failure to comply with the rules, that taxable person will be excluded from all special schemes (Union, non-Union and Import One Stop Shop) in any Member State for two years following the period during which the person was excluded. The exclusion of the taxable person will be effective on the day following that on which the decision on exclusion was sent electronically to the taxable person.

Considered Reasons for Failure

A taxable person or intermediary will be considered as having persistently failed to comply with the rules of the IOSS in the following circumstances:

• The taxable person or intermediary has received reminders to submit an IOSS VAT return for three return periods and an IOSS VAT return has not been submitted within 10 days of the reminder being sent by the Revenue Commissioners.

• The taxable person or intermediary has received reminders to submit payment for three return periods and the full amount due has not been paid within 10 days of a reminder being sent by the Revenue Commissioners unless the amount outstanding for each return is less than €100.

• The taxable person or intermediary has failed to provide records electronically to Revenue within one month of a reminder to do so issued from the Revenue Commissioners.

Choose My Duty Collect to be your IOSS intermediary and avoid IOSS removal. Subscribe to our blog and visit our ​website​ and ​LinkedIn​ page for more updates. You can also reach out to us by sending a message to ​info@mydutycollect.com​. We will be delighted to hear from you.