Etsy’s IOSS Number Application

Following the European Union’s new VAT system and IOSS regulations, whether ETSY—one of the major e-commerce platforms—would share its IOSS number with ETSY platform sellers became one of the most highly anticipated topics. Without delaying this matter, ETSY shared with its sellers the policy it would follow under current conditions and announced that it would collect import VAT for sold shipments with a goods value below 150 Euros that are shipped to European Union countries. ETSY also stated that these VAT amounts would be automatically charged by ETSY and transmitted to local tax authorities on the seller’s behalf.

After these changes, a process began in which ETSY sellers and users are required to adapt to the IOSS regulations. Accordingly, we have some recommendations for you. We suggest reviewing the points below and following these steps:

• First of all, we strongly recommend that you obtain information about the VAT rates applied by European Union member countries according to different product types.

• Since VAT will be added to the sales prices of your sold products, the prices paid by your buyers will automatically increase. Therefore, it will be very important to review your pricing policy and business plan and make the necessary adjustments accordingly.

• You can access the IOSS number provided by ETSY to platform sellers through the “Orders and Shipping – Shop Manager” section of the ETSY platform. You must share the IOSS number obtained from this section directly with your carrier company and must not use it for any other purpose. In addition, you must not write the IOSS number on the shipment package under any circumstances.

• Apart from the points mentioned above, perhaps the most important issue to consider is that the IOSS number must обязательно be stated on your proforma invoice. If the IOSS number obtained through the ETSY platform is not indicated on your proforma invoice, duplicate taxation may occur for your buyer, resulting in VAT being charged twice.

Click here to get detailed information about IOSS and to send your ETSY shipments abroad.