With the entry into force of the EU VAT reform in July 2021, the so-called Import One-Stop Shop (IOSS) system was introduced. It is aimed at companies that sell goods of low value (up to 150 EUR) to private customers in the EU. For Swiss merchants, the IOSS procedure offers an efficient way to simplify cross-border e-commerce, but it also has some special features. In this article, you will learn in detail what the IOSS system is, who benefits from it, and how you as a Swiss company can apply for an IOSS number.
What is the IOSS system?
The Import One Stop Shop (IOSS) is an electronic portal of the European Union through which companies that sell goods of low value (up to 150 EUR) from third countries (such as Switzerland) to the EU can pay VAT centrally.
Purpose of the system
- Simplify VAT collection for cross-border e-commerce
- Elimination of VAT payment by the end customer upon delivery
- Faster and less complicated customs clearance
Advantages of IOSS registration for Swiss merchants
- Transparent prices for customers: buyers see the final price, including VAT in the online shop.
- Faster delivery: no delays due to customs clearance or VAT claims.
- Central tax processing: a monthly tax return for all EU deliveries under 150 EUR.
- Competitive advantage: fewer abandoned carts at checkout caused by unexpected extra costs.
Who can use the IOSS procedure?
Requirements
- You sell to private customers in the EU (B2C).
- The value of the goods is less than 150 EUR per shipment (excluding shipping costs and taxes).
- The goods are not subject to excise duty (e.g. alcohol or tobacco). You are shipping from a third country (e.g. Switzerland) to the EU. You are prepared to charge and pay VAT directly during the purchase process.
The process: applying for an IOSS number in Switzerland
Since Switzerland is not an EU member, special rules apply. You must have an EU-based fiscal representativewho will handle the registration and administration of the IOSS procedure.
Step 1: Find a fiscal representative
A tax representative is an EU-registered company or person who represents you for tax purposes. They will handle:
- IOSS registration
- The monthly IOSS report
- The correct payment of VAT
Examples of providers:
- Swiss Post (in cooperation with EU partners)
- Tax consulting firms in the EU
- Customs and e-commerce service providers
Tip: Choose a provider with experience in online trading and automated interfaces to your shop system.
Step 2: Register in the IOSS portal
The fiscal representative registers you via the IOSS portal of any EU member state. You do not have to prove that you have a permanent establishment in the EU; the tax representative assumes the legal obligations. After successful registration, you will receive your IOSS identification number, which is valid throughout the EU.
Step 3: Integrate into your online shop
Once you have received the IOSS number, you must adjust your web shop as follows:
- Calculate the VAT of the EU target countries correctly (e.g. 19% DE, 21% NL)
- Send the IOSS number to the shipping company (e.g. via EDI, API)
- Provide invoices with VAT shown
Many shop platforms such as Shopify, WooCommerce or Magento offer plugins or partner solutions for IOSS integration.
Step 4: Monthly VAT statement
Your fiscal representative will submit the following on a monthly basis:
- A consolidated overview of your sales to the EU
- The VAT owed per member state
- The total payment to the respective tax authority
This is done centrally via the IOSS portal; you do not need to register separately in each EU country.
What happens if I don't have an IOSS number?
If you do not register for IOSS, you will have the following disadvantages:
- Buyers must pay VAT upon delivery (often + handling fee charged by the delivery company)
- Delayed delivery times due to customs clearance
- Higher return rate, as many customers refuse to accept the delivery
- Legal risks if VAT is not paid correctly
Frequently asked questions (FAQ)
Can I apply for my IOSS number myself?
No. As a Swiss company, you must appoint a tax representative in the EU; as direct registration is not permitted.
How much does IOSS registration cost?
The costs vary depending on the provider. Common charges include:
- One-time setup fees (CHF 200-500)
- Monthly administrative fees (CHF 50-200)
- Additional fees for software connection and reports
What happens to returned goods?
In the case of returns, the VAT paid may be refunded or corrected in the next IOSS report, depending on the fiscal representative's process.
Conclusion: IOSS as a strategic advantage for Swiss online retailers
The IOSS procedure is a valuable tool to make online trade with the EU easier, faster, and more transparent. Especially for Swiss companies that regularly sell goods of low value to private customers in the EU, an IOSS registration can be not only legally sensible, but also economically advantageous. The most important step is to select a reliable fiscal representative who will guide you through the registration process and relieve you of your tax obligations. With the right integration, you benefit from an optimized shipping process, higher customer satisfaction, and more sales potential in the European market.
