IOSS, DDP and DDU – Customer Guidance Policy

1. Purpose

To explain what an IOSS number is, how to obtain one, and how it is used within our system.
Also outlines the difference between DDP and DDU shipping services.

2. Scope

Applies to all clients shipping goods internationally, particularly into the EU.

3. What is IOSS?

IOSS (Import One Stop Shop) is an EU VAT scheme for goods valued at €150 or less shipped to consumers in the EU.

It allows VAT to be collected at checkout rather than at delivery.

4. Benefits of IOSS

Customers do not pay VAT or handling fees on delivery
Faster customs clearance
Improved delivery success rates
Better customer experience (no surprise charges)

5. When IOSS Applies

IOSS can be used when:

Goods are shipped to EU countries
The total consignment value is €150 or less
Goods are sold directly to consumers (B2C)

6. How to Apply for an IOSS Number

You cannot apply directly unless your business is EU-established.

Most UK businesses must register through an EU-based intermediary.

Common providers include:

Tax agents and VAT specialists
Fiscal representatives operating in the EU

Examples of providers include firms such as SimplyVAT and Avalara.

Typical process:

Choose an intermediary
Register for the IOSS scheme
Receive your IOSS number
File monthly VAT returns via your intermediary

7. Providing Your IOSS Number to Us

Once you have your IOSS number:

Send it to your account manager or support team
We will add it to your account in Mintsoft

Once configured:

You can select courier services that support IOSS
Your IOSS number will be automatically applied to relevant shipments

8. What is DDP?

DDP (Delivered Duty Paid) means:

Duties and taxes are paid upfront by the sender
The recipient receives the parcel with no additional charges

Benefits:

No delivery delays due to customs payment
No unexpected costs for the end customer
Higher delivery success rates

9. What is DDU?

DDU (Delivered Duty Unpaid) means:

Duties and taxes are not paid upfront
The recipient must pay charges before delivery

Implications:

Possible delays at customs
Courier handling fees may apply
Higher risk of refused deliveries

10. Current Service Availability

USA shipments are currently DDP only
- All duties and taxes are paid upfront
- No DDU option is available
EU shipments:
- IOSS can be used for orders ≤ €150
- DDP services are available where applicable

11. Responsibilities

Customer Responsibilities:

Obtain and maintain a valid IOSS registration
Ensure VAT is correctly charged at checkout
Provide accurate product values and descriptions

Our Responsibilities:

Add your IOSS number to your account in Mintsoft
Enable relevant courier services
Ensure the number is transmitted with shipment data

12. Important Notes

IOSS does not cover goods above €150
Incorrect or missing IOSS data may result in:
- Delays
- Additional charges
- Returned shipments
We do not provide tax advice. You should confirm compliance with your VAT intermediary

13. Version Control