Import / Export - Brexit - OSS Advice

Having the correct documentation is vital when importing or exporting, as inappropriate or overlooked documentation can lead to shipping delays, increased costs and business risks, such as cancelled international commercial activities.

Even if you’re using a freight forwarder, your company will still be held liable as the importer or exporter of the goods for late or incorrect documentation.

Whether you are importing or exporting, especially since Brexit, we can help your business understand what documentation is required, potentially saving you a lot of trouble. We help to explain the necessary documentation your company should be using for international contracts, customs, shipping and payments.

We provide clear and relevant advice that can help steer your international trade business onto the right course.

When your company engages in international trade, we provide guidance on the different types of documentation you’ll need. 
Documentation covers a number of crucial aspects of importing and exporting, including:
  • A detailed written contract between the parties, which state exactly where goods are to be delivered.
  • Comprehensive documents are needed to ensure that your goods get through customs and you pay the correct duty and tax charges.
  • There may be different documentation requirements at either end of the supply chain, and these must be considered.
  • Other documentation will be required to cover the insurance of the goods whilst being shipped within the international supply chain.
  • To ensure payment for the goods, it is vital to have the right documentation in place, especially if the payments are via international banks.

As part of our service, we will help you correctly classify your goods on your documentation for tax purposes and to ensure you meet the required regulations.

The One Stop Shop (OSS)

The One Stop Shop (OSS) is a simplified way for suppliers to account for VAT due on sales to consumers (i.e. non-VAT registered customers) across the EU. If sales to consumers are subject to VAT in the consumer's territory, rather than registering for VAT in every EU territory where they have customers, suppliers can register in one member state (the so-called member state of identification') and account for VAT due accross the EU on a single return.

The OSS was introduced with effect from 1 July 2021. It is an expansion of the Mini One Stop Shop ("MOSS") which, until 30 June 2021, applied to sales of broadcasting, telecoms and electronicly supplied services. At the same time the EU set up an Import OSS ("IOSS") to simplify accounting for VAT on goods shipped to EU consumers from outside the single market.

There are two OSS schemes, the Union scheme (for suppliers established in the EU) and the non-Union scheme (for suppliers established outside the EU).  The OSS can be used to account for VAT on:

  • all supplies of services where the place of supply is the EU customer's territory.
  • distance sales of goods (essentially mail, telephone and internet order goods) within the single market. From 1 July 2021 the place of supply of these goods is the customer's territory.

Northern Ireland remains part of the EU single market when trading in goods (not services).  Distance sales of goods to and from Northern Ireland are covered by the Union OSS, and HMRC has putting a system in place to enable Northern Irish suppliers to register for the Union scheme. 

Northern Irish businesses supplying services to EU consumers will be covered by the non-Union scheme and should register in a member state of their choice.

Since 1 July 2021 the IOSS has been available to enable importers to more easily account for import VAT due on low value imports of non-excise goods.  The IOSS can be used to account for VAT on:

  • Consignments with value of no more than €150 (or local currency equivalent, in the UK - the IOSS can be used in relation to imports into Northern Ireland -this is £135); and which are not subject to excise duty.

Consignments which do not meet these conditions are subject to import VAT & duty in the normal way.  Usually the company delivering the goods (e.g. courier, freight forwarder, post office etc) collects the tax due from the customer as a condition of delivery.

For assistance with your Import / Export requirements including OSS please Contact Us