Value Added Tax Act 1994 section Schedule 9ZE paragraph 10

Liability to pay VAT to Commissioners

Section Schedule 9ZE paragraph 10 sets out who is liable to pay VAT on qualifying supplies of goods made under the Import One-Stop Shop (IOSS) scheme, and how the amount of VAT owed is calculated.

• A person registered under the IOSS scheme who makes a qualifying supply of goods is liable to pay VAT on that supply to HMRC.
• The VAT amount owed is calculated without any deduction of input VAT (i.e. no offset for VAT incurred on purchases).
• If the supply is treated as made in the United Kingdom, the VAT amount is determined under UK law and is regarded as VAT charged in accordance with the VAT Act 1994.
• If the supply is treated as made in an EU member state, the VAT amount is determined according to the law of that member state.