OSS and IOSS: What Has Changed for Amazon Sellers?

October 14, 2021

On July 1, 2021, the EU’s new VAT reform came into effect. The new rules for online sellers are supposed to simplify VAT filings for distance selling within the EU, but also for import VAT due on products from outside of the EU. The VAT reform does not only affect sellers

with their own online shop, but also sellers who use third party platforms like Amazon or eBay can be affected. In this article, we will tell you all you need to know about the new VAT reform.

What is OSS?

The acronym OSS is short for One Stop Shop. The idea behind OSS is to have “one stop” only where you pay VAT instead of having to register for VAT in each EU country where you sell goods. The concept behind OSS is not entirely new. In fact, OSS is an extension of MOSS, the Mini One Stop Shop. MOSS was introduced in 2015 and encompassed EU-wide telecommunications, broadcasting and electronic (TBE)

services.

With OSS, the concept is now expanded to include B2C eCommerce sellers based in EU countries. The new One Stop Shop is not just reforming how online sellers can register and file for VAT though. It also includes the IOSS, the Import One Stop Shop concerned with import VAT registration and filings as well as new, harmonized distance selling thresholds. Let us focus on each of these aspects one after the other.

Simplifying VAT with OSS - How does that work?

Before OSS, you had to register and file for VAT in each European country that your customers were based in. Now, you are able to register in one country only and do your VAT filings all in one. However, there is one exception to this rule. You will still have to register for VAT in EU countries where you store your goods.


Also, the OSS only applies to B2C transactions. For you as an Amazon seller it is important to note that if you store and sell goods through Amazon FBA, this also counts as storing goods in a country, even if it is Amazon who stores them on your behalf.

A new distance selling threshold

Along with OSS, a new EU-wide distance selling threshold is introduced. Instead of having different thresholds for each country to be monitored, there will now only be one threshold. The EU-wide VAT selling threshold is set at 10,000 € per year.


This offers both advantages and disadvantages. On one hand, you do not have to monitor several thresholds for all the countries you sell to, on the other hand, it has now become easier to cross that threshold.

Import One Stop Shop and the end of low-value VAT exemption

The Import One Stop Shop (IOSS) aims to simplify import VAT registrations and filings. Similar to OSS though, it comes with a significant change for when import VAT is due. Up until now, items valued at or below 22€ were VAT exempt. Under the new regulations, sellers can collect, declare and pay import VAT for all items valued between 0 and 150€. But the import VAT exemption for goods valued between 0 and 22€ has been abolished with the introduction of IOSS.


Sellers who profited from being able to offer these items cheaper from outside of the EU due to the VAT exemption will not be able to use that competitive advantage anymore. As an eCommerce seller based in the EU, or with a local representative for your business registered in the EU, you can request a VAT number for all IOSS transactions from your

local tax office.


Do I have to use OSS and IOSS?

While the new thresholds as well as the abolishment of the import VAT exemptions apply to every B2C distance online seller in the EU, the use of OSS and IOSS is not obligatory at this point. Therefore, it is up to you whether you want to register for OSS and IOSS or not.


If an online seller opts out of IOSS, import VAT will be collected directly from the customer upon delivery by the shipping company.

As an Amazon seller, it is also possible that Amazon takes care of the IOSS for you and collects and declares import VAT on your behalf. Amazon can provide an IOSS number for you that you can then use on your documents.


VAT made easy with VAT automation


With all these changes to implement into your business routine, right now might be the perfect time to automate your VAT registrations and filings. Tools like hellotax monitor thresholds for you and keep track of deadlines. They calculate the correct VAT percentage for different countries and can be used to reclaim import VAT when applicable. No matter if you want to use OSS and IOSS or not, you can

greatly reduce the paperwork and effort and focus completely on your business.


Conclusion


The EU VAT reform brings about several changes for online sellers. Even if some components of it are optional, others are not and have the potential to change the competitive landscape. While platforms like Amazon can take on some of the responsibilities for you, it is still important that you evaluate your individual situation to find the best solution for your online business.

Handling FBA Errors in the Fashion Industry

By AMS • October 19, 2021
If one thing’s for sure, it’s this: the fashion industry has never been more digital than it is today. It doesn’t really come as a surprise if you think about it. The digital transformation – after affecting the “usual suspects” like financial services and media – has now been spilling over to sectors that offer physical products, such as retail and fashion. The question is: in what form is this happening and how can you and your online business make the most out of this momentum? The first question is answered easily: The digitization of the fashion industry has led to more people shopping for clothes online than ever before. What started out as a necessity for some people, because all the brick and mortar stores closed due to the pandemic, has now become regularity. As an Amazon seller, you constantly profit from this. Not only are you selling over the world’s largest platform and are therefore able to reach a ridiculous amount of potential customers, you are also able to benefit from all the processes and amenities the online giant offers its sellers. Selling over Amazon FBA being one of those. What is Amazon FBA? FBA stands for “Fulfillment by Amazon” and is basically an in-house fulfillment service for sellers. This means that you can book this service and Amazon will take over your logistics for you. The service includes warehousing of goods, compilation of orders, redistribution to another warehouse due to specific order demand, shipping, customer service in respective languages, as well as refund and return management. All you have to do is send your products to an Amazon Fulfillment Center, and the online giant will take over from there. Benefits of Selling Over Amazon FBA There are several reasons why this business model is so popular. These are the most convincing ones. You Have Less Things to Worry About For one, Amazon sellers have a lot on their plates and are happy about tasks they can delegate into competent hands. This is the exact case here – who could be more qualified for the Amazon fulfillment process than the online giant themselves? Apart from the fulfillment process, the online company also takes over storage and customer service for you. Amazon FBA will save you a lot of time. Time that you can now spend on other things, like working on your listing, researching new products … Or, you know, napping. You Improve Your Seller Rating and Sales As we mentioned, the online company takes over delivery and customer service for you. On-time delivery and pristine customer service are factors that make you more attractive as a seller and are also reflected in your Amazon seller rating. If you sell over FBA, Amazon naturally gives your company the best rating for these two services, since they are the ones executing them. A great seller rating will also convince buyers that are on the fence about whether to buy from you or somebody else.

The most common mistakes sellers make when expanding to international marketplaces

By AMS • October 14, 2021
INTRODUCTION: Amazon is growing fast – and so do sellers’ interests in expanding to new markets. With the additions of Amazon Sweden, Amazon Netherlands and, most recently, Amazon Poland, the eCommerce giant now counts 18 marketplaces worldwide. This allows Amazon products to reach over 300 million active site users across the globe who turn to the online retailer to fulfill their shopping needs. However, the real challenge of reaching Amazon consumers does not lie in ironing out the often minute bureaucratic details of signing up for a new global marketplace, but rather in preparing the appropriate Amazon listings that will speak to them, quite literally, in their own language. Herein, then, come the pitfalls new and seasoned sellers alike fall into: not taking into account the intricacies of each marketplace and, of course, the seller-to-customer communication barrier that crosses borders and cultures. In this article, we’re going to examine the most common mistakes sellers make when deciding to foray into new marketplaces and see how easy it is to avoid them by tapping into the power of translation services and marketplace-specific Amazon SEO. Using automatic translation Presentation is critical when it comes to product marketing, and that extends beyond snapping perfect pictures or preparing the most eye-catching infographics. Each Amazon product listing features dedicated sections where sellers are allowed to showcase product features and benefits, which, if conveyed in a way that resonates with those browsing the listing, can lead to conversions. Nevertheless, if the language used in said listings is poorly translated, then the feeling conveyed to those browsing it is one of confusion. You can see why, then, language translation plays a crucial role in succeeding in international marketplaces. Suffice to say that using Google Translate, Amazon’s auto-translate feature, or anything other than professional translations services will not help you win customers – quite the contrary! That’s why it’s imperative that you hire a translation company that employs a professional translator team that’s ready to do the work for you – the right way. It’s a small investment in the grand scheme of things, but it does, however, pay off in great dividends. 2. Not establishing a connection with customers Going beyond employing professional translation services, your translation agency of choice should understand the nuances of each market and how customers respond to the way your products are presented in their listings. Cultural and geographical differences influence purchase decisions and should be an important consideration when crafting an attractive listing yet in tune with what works best and helps draw in Amazon users in a way that feels authentic and relevant. For example, listing performance data shows that those shopping on Amazon US respond best to listings that use more sales-friendly, lighthearted copy. On the other hand, customers on Amazon DE find all flowery language redundant and feel that it takes away from what they seek to find out about the product at hand, which is its features and uses. So, for this market, it is imperative that listings use language that is clear and concise and further helps avoid customer dissatisfaction by unknowingly overpromising or giving the wrong impression regarding the product’s capabilities. 3.Failure to conduct marketplace-specific SEO Do customers search for products using the same keywords on, say, Amazon US and Amazon ES? Well, while some may think so, reality proves otherwise, and for a reason. First off, literal keyword translations often don’t correspond to anything of substance in the language of translation. Second of all, it’s understandable that people in different countries, and at times within different regions of the same country, will look up for things in different ways. For example, within the United States, customers looking for women’s bag can search for “bags for women” or “bolsas para mujeres”. While the latter keyword may seem out of place, it does, however, make sense given the large Spanish-speaking population in great parts of the United States. Without proper keyword research, though, you’re bound to lose out on sourcing the right keywords for your Amazon listing optimization, and, as such, do a poor job on making the most out of your Amazon product page. 4. Skipping measurement conversions & packaging translation It’s simple: customers want to know what they’re getting without having to whip out a calculator or open another browser tab to do unit conversions. European Countries, the United Kingdom, and Canada use the metric system, while the United States uses the imperial system. This essentially means that all measurements, including height, breadth, width, weight and temperatures need to correspond to the units used in the respective countries serviced by each marketplace. However, product specification adjustment also includes packaging. Customers receiving their purchases will not be pleased if they can’t read what’s said on the packaging in their own language. Given how prevalent the issue of skipping this step became, Amazon has actually implemented a policy where all measurements and packaging now needs to be translated to cater to the consumers of each marketplace a product is sold. You need to be sure that your language translation services cover this aspect of your product list process so that you don’t run into trouble in the long run. 5.Using translators that don’t have Amazon expertise It’s one thing to be a professional translator, but it’s another to know what it takes to offer a full Amazon listing optimization service. Amazon, and each of its marketplaces, present many intricacies that need to be accounted for. Each translator well-versed in the Amazon ecosystem has a running “Amazon list” of things they take care of when optimizing a listing or creating it from scratch. For this reason, going by way of using an agency that can offer both translation services and a dedicated Amazon SEO service can save you a lot of time, effort, and headaches that come with trying to piece each piece of the “Amazon selling puzzle” alone. Trusting in the expertise of people who have helped thousands of sellers in the Amazon journey can not only provide you with a sense of peace but also allow you to profit significantly by starting on the right foot, with a listing that’s optimized and ready to convert.