FedEx works with KPMG to launch an exclusive offer to help ecommerce sellers manage VAT 21 changes
The online platform will help eligible FedEx sellers based outside of the European Union to fulfil the EU’s IOSS VAT obligations which will be introduced from 1 July 2021.
HOOFDDORP, The Netherlands, May 11, 2021 – FedEx Express has selected KPMG to offer a streamlined Import One Stop Shop (IOSS) solution at a discounted fee, to help its ecommerce 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 ecommerce sales of goods valued at up to €150 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 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’ ecommerce customers from 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 firms will provide this intermediary service for businesses.
FedEx’s selection of KPMG helps to give ecommerce sellers preferential access to a new online portal and IOSS support at a discounted KPMG IOSS compliance fee. Sellers will be assigned a dedicated KPMG account manager who can answer questions users have about IOSS. Additional services include assistance with the IOSS registration process, notifications handling, and online alerts so they can stay proactively informed about any tax changes that may affect their business. FedEx ecommerce sellers can now register to indicate their interest to access the platform when it opens later in May.
“With the various changes to the structure of the EU’s VAT regime right around the corner, it is vitally important that ecommerce 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” said Marius Penninks, Vice President of Clearance Operations for FedEx Express Europe. “We encourage the use of the EU’s IOSS regime to help prevent ecommerce 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.”
The potential benefits of using the IOSS for ecommerce sellers include:
- Transparency to the customer – at the time of purchase, the customer will see the full cost of the goods and pay a VAT inclusive price, so they will not be confronted with unexpected costs, such as VAT and additional handling fees at the time of delivery.
- Reduced compliance burden – the seller can use a single IOSS registration to report and pay the VAT due on sales in all countries covered by the IOSS regime instead of having to register in each of the separate countries.
- Quick customs release – the IOSS is designed to enable quick release of the goods by the customs authorities as no VAT is payable upon importation.
- Flexible logistics – using IOSS simplifies logistics as the goods can be imported into the EU in any Member State, regardless of the Member State where the goods are ultimately destined to.
FedEx B2C sellers can register for the KPMG IOSS Portal by visiting https://www.kpmg-compliance.com. To learn more about the upcoming changes to the VAT in the EU and how they affect businesses, visit fedex.com/euvatchanges.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $79 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 570,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit about.fedex.com.
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. We operate in 146 countries and territories and in FY20 had close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
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