FedEx Express has selected KPMG as its partner to provide a streamlined import one-stop shop (IOSS) solution at a discounted fee, to help e-commerce sellers outside of the European Union (EU) with necessary IOSS compliance.
From July 1, 2021, the EU will introduce the new, non-mandatory IOSS regime for the declaration and payment of VAT on e-commerce sales of goods valued at up to €150 (US$182.50) imported from non-EU countries or territories. As part of the changes, the VAT exemption for imported goods into the EU with value not exceeding €22 (US$26.70) will be removed.
By using the IOSS, VAT will not be paid at the time of importation of eligible goods, rather it will be paid as part of the purchase price. This prevents businesses’ e-commerce customers being confronted with unexpected costs and delays at the time of delivery. In order to access IOSS, suppliers who are not established in the EU will need to appoint a single VAT intermediary. KPMG companies will provide this intermediary service for FedEx.
“With the various changes to the structure of the EU’s VAT regime right around the corner, it is vitally important that e-commerce sellers based outside of the EU consider their level of preparedness, or they risk impacting their customer experience and could take on additional time-consuming compliance tasks. At FedEx, we are committed to helping our customers navigate new regulatory landscapes so they can focus more of their time and attention on their business and their customers,” explained Marius Penninks, VP of clearance operations for FedEx Express Europe.
“We encourage the use of the EU’s IOSS regime to help prevent e-commerce customers taking on unexpected costs and delays at the point of delivery. The KPMG IOSS Portal is one of the many ways we’re helping our B2C sellers outside of the EU navigate these changes.”