Import One Stop Shop
Import One Stop Shop
The Import One Stop Shop scheme is a special arrangement in the field of value added tax that is aimed at businesses performing distance sales of goods imported from third countries in consignments with a value not exceeding EUR 150. This scheme allows buisnesses or representatives in accordance with Section 18k Value added Tax Act acting on their behalf to transmit their relevant sales that fall under this special arrangement centrally to the German Federal Central Tax Office (Bundeszentralamt für Steuern) using a special tax return.
Irrespective of the application of this special arrangement, the customs formalities for goods with negligible value imported into the EU must be fulfilled. Further information can be found on the German customs website.
Entry into Force
The regulations for the Import One Stop Shop scheme will enter into force on July 1, 2021. Pre-Registration for the special arrangement will be available from April 1, 2021.
Group of Persons
The procedure is aimed at businesses who
- perform distance sales of goods imported from third countries in consignments with an intrinsic value not exceeding EUR 150 to individuals within the European Union (EU)
- provide an electronic interface through the use of which they support the delivery of goods imported from third countries in consignments with an intrinsic value not exceeding EUR 150 and are therefore treated as if they had delivered the goods themselves
Please refer to the “Questions and Answers” section for detailed explanations of the terms “distance sales” and “electronic interface.”
Participation in the special arrangement is permitted for:
- Domestic businesses
- Businesses not established in the Community territory provided that the EU has concluded an agreement on mutual assistance with the third country in which the traders are established (this currently applies only to Norway)
- Businesses not established in the Community territory provided that they have contractually appointed a representative who is established in Germany and have reported this to the German Federal Central Tax Office
- Businesses established elsewhere in the Community territory provided that they have contractually appointed a representative who is established in Germany and have reported this to the German Federal Central Tax Office
Representatives as defined under the special arrangement
A representative as defined under the special arrangement is a person resident in Germany who is appointed by the business performing distance sales of goods imported from third countries as the person liable for payment of the tax (Section 13a of the Value added Tax Act (UStG)) and to fulfill the obligations specified in the special arrangement Import One Stop Shop in the name of and for the account of the business. Please also refer to Section 18k.1 (10) of the German VAT Application Decree (UStAE).
Advantages of the Special Arrangement
The Import One Stop Shop enables businesses to do the following with their distance sales performed in the other EU Member States that are covered by the special arrangement:
- To report them in a simplified customs declaration,
- To declare them monthly in a single tax return,
- To transmit this tax return centrally to the German Federal Central Tax Office (BZSt) by electronic means, and
- To pay the resulting tax as a total sum.
For participants in the Import One Stop Shop scheme, the deliveries of goods imported from the third country that do not exceed an intrinsic value of EUR 150 are exempt from the import value added tax in accordance with Section 5 (1) no. 7 Value added Tax Act.
Registration and Deregistration
In order to participate in the special arrangement, businesses or representatives acting on their behalf must submit their application for participation in the special arrangement to the BZSt by electronic means. For fiscal units subject to value added tax, the dominant enterprise must request participation in the special arrangement by specifying its VAT Registration Number.
Participation is considered standard for all EU Member States.
The start of registration is generally the day on which the individual IOSS registration number was announced to the business or the representative acting on its behalf.
The BZSt online portal (BOP) is available for submitting applications in Germany.
The BZSt will upload the message regarding the completed processing of the registration notification to the inbox in the BZSt-Online portal usually within five working days. This message will also contain the registration number allocated to the business or representatives acting on their behalf who have been registered for the scheme.
Businesses or representatives acting on their behalf who are registered for the special arrangement can change their registration data, submit their tax returns, and deregister from the scheme in the BZSt online portal. Revocation of participation is generally possible, observing a revocation period of 15 days at the start of a new assessment period (calendar month) with effect from this period.
Electronic Data Submission
Due to legal requirements, all forms in the Import One Stop Shop scheme must be submitted to the Germany´s Federal Central Tax Office (BZSt – Bundeszentralamt für Steuern) by electronic means.
Electronic data submission
From April 1, 2021, traders can submit an electronic application for participation in the special arrangement to the BZSt. Participation is considered standard for all EU Member States. The BZStOnline portal (BOP) is available for submitting the application.
Duties
There are various duties associated with participating in the special arrangement. A few basic duties are explained below.
Timely submission of the tax return
In the special arrangement Import-One-Stop-Shop, the tax return must be submitted by electronic means to the BZSt no later than the end of the calendar month following the assessment period. This results in the following submission deadlines:
| Assessment period | Submission deadline |
| January | by February 28 |
| February | by March 31 |
| March | by April 30 |
| April | by May 31 |
| May | by June 30 |
| June | by July 31 |
| July | by August 31 |
| August | by September 30 |
| September | by October 31 |
| October | by November 30 |
| November | by December 31 |
| December | by January 31 of following year |
Even if no sales were carried out in the relevant calendar month, a tax return (“nil return”) must be submitted on the deadline stated.
On the tax return, the registration number and the assessment period, and the following information must be entered separately for each Member State in which the sales subject to this special arrangement were made:
- Total sales (to non-traders) without tax
- VAT type (standard / reduced)
- Tax rate
- Tax amount (calculated automatically)
- The total tax liability (calculated automatically) is also required
- Information on corrections to previous assessment periods
The amounts must be specified in EUR. The uniform exchange rate determined by the European Central Bank on the last day of the assessment period applies when converting values in foreign currency. If no exchange rate was determined on that day, then the exchange rate of the next day applies.
Timely payment of the reported taxes
The tax amounts reported in the Import One Stop Shop scheme must be paid in a timely manner so that the payment is received by the relevant federal treasury by the end of the month following the assessment period.
Direct debiting is not possible. You can find additional information under the key point "Bank details."
Changing the Registration Data
The registered businesses or the representative acting on their behalf must notify the BZSt of changes to the registration data by electronic means no later than the tenth day of the month that follows the month in which the circumstances changed.
In case details change, all updated registration data must be specified.
Registration data can be changed within three years following the effectiveness of deregistering from the Import One Stop Shop special arrangement.
Under the “Form” section in the BZSt-Online portal there is a special form available that must be used to report the updated registration data.
Deregistering from the special arrangement
The registered business or representative acting on their behalf must deregister from participating in the special arrangement no later than the tenth day of the month following the change, in the following cases:
The registered business must deregister if:
- The provision of the service generating the sales covered by the special arrangement is discontinued permanently.
- The preconditions for participation cease to apply in all EU Member States.
- An application is submitted for registration in another EU Member State due to the preconditions for participation ceasing to apply in Germany (e.g. after relocation of the registered office or closure of a fixed establishment in the territory of the country).
The registered representative must deregister if:
- The preconditions for participation cease to apply in all EU Member States.
- An application is submitted for registration in another EU Member State due to the preconditions for participation ceasing to apply in Germany (e.g. after relocation of the registered office or closure of a fixed establishment in the territory of the country).
The deregistration of the representative results in the exclusion of all businesses represented by it from the special arrangement.
There is a deregistration form available in the “Forms” heading in the BZSt online portal for deregistering from the special arrangement.
Record-keeping requirements
Records about sales carried out as part of the special arrangement must be kept in order to check the accuracy of tax returns and payments. The records must be provided by electronic means to the BZSt, the responsible German local tax office or the central competent authorities of the other EU Member States upon request. The retention period for the records is ten years.
Bank Details
The tax amounts declared in the Import One Stop Shop scheme must be transferred to the following account. Direct debiting is not possible.
Payee: Bundeskasse Trier Sonderkonto EU/UST
Bank name: Deutsche Bundesbank, Saarbrücken branch
BIC Code: MARKDEF1590
IBAN: DE81590000000059001020
The costs of the transaction are at the expense of the business (“our” charging scheme).
The reference number of the relevant tax return must be indicated as the payment reference for the first payment. The format for this is “DE/IM reg. no./assessment period as MM.YYYY.”
Example of a reference number: DE/IM9999999999/07.2021
After the first payment, each taxable person is provided with a transaction reference that must be specified as the payment reference for all further payments in the Import One Stop Shop process.
Input Tax
Deduction for traders based in foreign countries:
A trader based in a foreign country who participates in the special taxation process and performs only distance sales in Germany that are covered by the Import One Stop Shop scheme can assert input tax amounts only as part of the input tax refund procedure. This is subject to the condition that the input tax amounts are connected directly with these sales.
Should the trader based in a foreign country also generate other sales in Germany for which participation in the general taxation process is necessary, the trader can assert the input tax amounts connected directly with the direct sales covered by the special arrangement only in the general taxation process.
Deduction for traders based in Germany:
Traders based in Germany who participate in the special taxation process can assert input tax amounts for distance sales that were rendered in Germany only in the general taxation process with the responsible tax office as part of their VAT provisional return / VAT return for the calendar year.
For sales that are covered by the special arrangement and which were made in a different Member State, input tax amounts can be asserted only via the input tax refund procedure. However, this applies only if the trader is not covered by the general taxation process in the Member State in which the distance sales were made.
Background
A number of changes to the value-added tax regulations for cross-border electronic business transactions between traders and consumers will come into effect on July 1, 2021.
This will also give equal status to EU traders and providers from third countries.
The exemption from VAT for the importation of goods with a value of up to EUR 22 will be removed. The special arrangement for distance sales of goods imported from third territories or third countries with a value not exceeding EUR 150 will be implemented and designated as the one-stop-shop scheme for import (Import One Stop Shop).
The advantage of this is that traders are not required to register with the tax authorities and fulfill their obligations to report and file tax returns in all Member States in which they perform distance sales of goods with a value not exceeding EUR 150 imported from third territories, but can declare all sales generated in the Community territory that are covered by the special arrangement in one statement.
If the trader intends to participate in the Import One Stop Shop special arrangement and to register for the process in Germany, the registration application according to an officially mandated data record must be submitted to the German Federal Central Tax Office via remote data transmission prior to the start of the assessment period.
Questions and Answers
What are distance sales?
According to Section 14 (4) of the directive on the common system of value-added tax, 2006/112/EC, direct sales are supplies of goods that are shipped or transported by the supplier or for their account from a third territory or third country to the purchaser in a Member State, including those in whose transport or shipment the supplier is involved indirectly, provided that the following conditions are cumulatively met:
- The goods are supplied to a taxable person or a non-taxable legal person whose intra-Community acquisitions of goods are not subject to value-added tax, or to another non-taxable person;
- The supplied goods are neither new vehicles nor goods that are assembled or installed with or without commissioning by the supplier or for their account.
The national provisions on distance sales can be found in Section 3 Paragraph 3a Sentences 4 and 5 of the Value added tax Act in the version valid on July 1, 2021.
What is an electronic interface?
According to Section 14a (1) of the directive on the common system of value added tax, 2006/112/EC, taxable persons who support distance sales of goods imported from third territories or third countries in shipments with a maximum real value of EUR 150 by using an electronic interface are treated as though they had received and supplied these goods themselves. An electronic market place, a platform, a portal, or the like is to be considered an electronic interface. According to Section 5b of the Implementing Regulation (EU) no. 282/2011, the term “support” refers to the use of an electronic interface for the purpose of enabling the establishment of contact between a purchaser and a supplier who offers goods for sale via an electronic interface, which results in a supply of goods to this purchaser via the electronic interface.
However, a taxable person does not support the supply of goods if all of the following requirements are met:
- They specify none of the conditions for the supply of goods either directly or indirectly;
- They are not involved in the authorization of the settlement with the purchaser, either directly or indirectly, with regard to the payment made;
- They are not involved in the ordering or supply of the goods either directly or indirectly.
The national regulations on the electronic interface can be found in Section 3 (3a) sentences 1 and 3 UStG in the version applicable from 1 July 2021.
What is a representative?
A representative is a person resident in Germany who is appointed by the trader who performing distance sales of goods imported from the third countries as the person liable for payment of the tax (Section 13a Value added Tax Act) and to fulfill the obligations specified in the special arrangement for Import One Stop Shop in the name of and for the account of the trader. Please also refer to Section 18k.1 (10) UStAE.
How is a “consignment” defined?
As a general principle, each individual package constitutes one consignment. Goods which are packaged together in the same package and sent simultaneously from the same sender (e.g. supplier, underlying supplier or potentially an electronic interface acting as a fictitious supplier) to the same recipient (e.g. buyer in the EU) under a transport contract (e.g. air waybill, CMR, postal consignment under the Universal Postal Convention with S-10 barcode) are considered a single consignment. Goods, which are ordered separately by the same person but are shipped together in the same package, are also considered to constitute a single consignment. Goods, which are shipped from the same sender to the same recipient and are ordered and delivered separately, are considered separate consignment, including in cases where they arrive at the postal operator or express courier service provider for the destination point on the same day but in separate packages.
What is meant by the intrinsic value?
The intrinsic value refers to the price of the goods themselves upon sale for export to the customs territory of the Union, not including transport and insurance costs, provided that these are not included in the price or listed separately on the invoice, as well as all other taxes and duties that can be identified by the customs authorities on the basis of the relevant documents.
Where do I find additional information on the application of the special arrangement?
Further information regarding the special arrangement Import-One-Stop-Shop can be found in the German VAT Apllication Decree (Umsatzsteueranwendungserlass – UstAE). Attention should be drawn to Sections 3, 3a, 3c and 18k.
The European Union published detailed information on the special arrangement for Import One Stop Shop and other special arrangements in a guideline (not legally binding).
What is a fixed establishment?
A fixed establishment within the meaning of value added tax law is a fixed place of business or site used for the activity of the trader. It must have a sufficient minimum amount of human resources and equipment as well as an adequate degree of reliability and a structure whose staff and technical equipment enables the autonomous provision of the respective services. A structure is considered reliable, for example, if the facility has a number of employees, if it can conclude contracts and make decisions, and if accounting and recording take place there.
The term “fixed establishment”, which is commonly used at the EU level, is identical in meaning in the context of VAT law to the term “permanent establishment” employed at the national level. The term “permanent establishment” is explained in Section 3a.1 (3) of the Umsatzsteuer-Anwendungserlass (UStAE – German VAT Application Decree).
What sales are to be declared?
Distance sales of goods imported from the third countries in consignments with an intrinsic value not exceeding EUR 150 made to an individual within the EU.
Can a registered business or a representative acting on their behalf be excluded from this process?
Businesses or representatives acting on their behalf that repeatedly fail to meet their obligations in connection with participating in this scheme or that fail to do so in a timely manner will be excluded from this process by the German Federal Central Tax Office. The same applies to businesses or representatives acting on their behalf of which it can be assumed that sales will no longer be carried out as part of the special arrangement.
How can the trader participating in the special arrangement check whether the purchaser or customer is a trader established in the EU or a non-trader?
A trader established in the EU will provide documentary evidence of its entrepreneur status to the German supplier by specifying its VAT Registration Number.
According to German Value added tax law, only traders within the meaning of Section 2 Value added Tax Act (UStG) who are registered for taxation purposes at a German tax office can be assigned a value-added tax registration number (VAT REG NO) upon request (Section 27a Value added Tax Act). The assignment of a value-added tax registration number to non-traders (e.g. individuals) is not permitted.
When determining the tax status of its purchaser or customer, the trader participating in the special Import One Stop Shop taxation process has the opportunity to review the validity of the foreign VAT REG NOs issued by the tax authorities of EU Member States. In addition, there is the possibility to check information, e.g. company name including legal form, place, postcode and streets, related to a VAT REG NO by making what is known as a qualified confirmation inquiry.
The online form for performing the confirmation inquiry can be found here.
The validity of VAT REG NOs can also be checked on the website of the European Commission. However, qualified confirmation inquiries cannot be carried out there.
Which tax rate has to be applied?
The sales that fall under this special arrangement are always subject to the VAT rate applicable in the Member State in which the recipient (non-trader) is established.
What are the VAT rates in the EU Member States?
The VAT rates of EU Member States can be found on the EU Commission’s website
Is it required to specify sales to purchasers or customers established in Germany in the tax return?
Distance sales of goods imported from third countries to individuals whose domicile or normal place of residence is in Germany must also be specified in the tax return.
What does the tax return include?
The following information must be provided in the tax return:
- Identification information relating to the tax return (specification of the IOSS identification number; in the event of representation, the representative’s identification number; and the assessment period),
- Information on the sales of the registered trader that fall under the special arrangement
The information on the sales must be provided separately for each EU Member State in which the services to non-traders that fall under the special arrangement were provided. They must be itemized in accordance with the applicable tax rates.
The amounts must be specified in EUR. The uniform exchange rate determined by the European Central Bank on the last day of the assessment period applies when converting values in foreign currency. If no exchange rate was determined on that day, then the exchange rate of the next day applies.
There is a tax return form available in the “Forms” section in the BZSt online portal for submitting the tax return.
Where do I find the general EUR exchange rates of the European Central Bank?
EUR exchange rates of the European Central Bank (ECB) can be found on their website.
What should be taken into account with regard to the tax return in the case of deregistration from the special arrangement?
If the trader continues to perform services or has performed services for which they have not yet submitted a tax return up to the point when the deregistration becomes effective, they must submit the tax return to the German Federal Central Tax Office even after they have deregistered from the special Import One Stop Shop scheme. Tax amounts that are due or incurred must still be paid.
What should be taken into account with regard to corrections/adjustments of the tax returns?
A tax return that has already been submitted can generally only be adjusted in connection with the subsequent tax return. This is why, for example, the tax return for the month of July 2021 can be corrected in connection with the tax return for the month of August 2021 at the earliest.
Tax returns can be adjusted within three years of the last day of the filing deadline.
The “List of sales and adjustments” forms page can be used for making adjustments.
In the case that a trader or a representative is no longer able to submit a further tax return for legal reasons (e.g. because their participation in the special arrangement has ended and the tax return for the last assessment period for which they are required to submit a tax return has already been submitted), adjustments must be declared immediately to the tax authorities of the affected Member State of consumption.
Is it possible to offset resulting credit balances?
In the Import One Stop Shop scheme, credits resulting from corrections are first offset with the declared tax amount within the tax return for the Member State in question. The Member States in question must refund any credit remaining after the offset to the trader.
Example:
For the assessment period of August 2021, the trader declares taxes in the amount of EUR 100 for Member State X and EUR 20 for Member State Y. In the same tax return, the trader declares an adjustment amount of EUR -30 for Member State X and EUR -80 for Member State Y for the assessment period of July 2021.
As a result of the adjustment, the tax amount for Member State X is EUR 100 minus EUR 30 = EUR 70.
The tax amount for Member State Y is EUR 20 minus EUR 80 = EUR -60.
Based on the tax return in this simplified example, the trader has a payment obligation in the amount of EUR 70 to Member State X and a claim for refund in the amount of EUR 60 from Member State Y.
Where do I find contact details of the Member States?
The EU published the contact details of the Member States and further information regarding the special arrangement Import One-Stop-Shop on its website.
Contact
Bundeszentralamt für Steuern
Dienstsitz Schwedt/Oder
Passower Chaussee 3b
16303 Schwedt/Oder
Phone:
+49 228 406-1200
Fax: +49 228 406-3200
Service times: Monday - Friday from 9:00 a.m. - 2:00 p.m.
Jurisdiction:
St III 7 VAT refund
