What is IOSS?
The Import One-Stop Shop (IOSS) is an EU VAT scheme for goods sold to consumers and shipped from outside the EU in consignments worth up to €150. The seller, or the marketplace it sells through, charges VAT at the customer’s rate at checkout and declares it in one monthly IOSS return. At the border, the parcel is released without import VAT, because the VAT has already been paid.
IOSS started on 1 July 2021, when the EU abolished the old €22 VAT exemption for small imports. Since then, VAT is due on every import, however small. IOSS is optional, but without it the VAT is collected from the customer on delivery.
Core principle: IOSS moves import VAT from the border to the checkout. The customer pays one transparent price, and the parcel isn’t held for VAT on arrival.
How IOSS works
1. Register once
A seller registers for IOSS in one EU country and receives an IOSS number, which starts with IM followed by 10 digits. Most non-EU sellers must appoint an EU-based intermediary to register for them.
Why it matters: One registration covers sales to consumers in all 27 EU countries.
2. Charge VAT at checkout
For each order with an intrinsic value up to €150, the seller charges VAT at the rate of the customer’s country.
Why it matters: Customers see the full price upfront and pay nothing extra on delivery.
3. Pass the IOSS number to the carrier
The IOSS number travels with the shipment data, so customs releases the parcel without collecting import VAT again.
Watch out for: Without a valid number in the data, customs charges the VAT a second time.
4. File a monthly return
The seller declares all IOSS sales per country each month and pays the VAT to its IOSS country, which passes it on to the others.
Watch out for: Returns are due by the end of the following month, and records must be kept for 10 years.
IOSS vs other ways to handle import VAT
| IOSS | Special arrangements | Standard import | |
|---|---|---|---|
| Who pays VAT | Customer at checkout, seller remits | Customer, collected by carrier or post on delivery | Importer at the border |
| Value limit | Up to €150 | Up to €150 | Any value |
| Customer experience | No surprise fees | VAT plus handling fee at the door | Depends on who imports |
| Typical user | Non-EU webshops and marketplaces | Sellers without IOSS | Bulk imports into an EU warehouse |
What IOSS does not cover
- Consignments over €150. These go through a normal import, with duty and import VAT paid at the border.
- Excise goods, such as alcohol and tobacco.
- Customs duty. IOSS deals with VAT only. Since 1 July 2026, low-value consignments also pay a €3 customs duty per item.
- Goods already in the EU. Sales from stock in an EU warehouse are not imports. They are reported through the OSS or a local VAT return instead.
IOSS and marketplaces
When you sell imported goods up to €150 through a marketplace, the marketplace is treated as the supplier for VAT and uses its own IOSS number. You don’t need your own IOSS for those sales, but you do for orders through your own webshop.
Example: A UK accessories brand sells a €60 bag to a customer in Italy through its Shopify store. It charges Italian VAT of 22% at checkout, ships the parcel with its IOSS number in the data and declares the VAT in its monthly return. Customs in Italy releases the parcel without collecting VAT, but the €3 per item customs duty still applies.
When IOSS stops being the best option
IOSS suits brands testing EU demand with parcels shipped from abroad. Once orders are regular, many brands import stock in bulk into an EU warehouse instead: they clear customs once, avoid the €3 per item duty on every parcel and deliver faster. See our guides EU VAT for eCommerce: OSS and IOSS explained and Selling in the EU from outside the EU: VAT, EORI and stock.
Frequently asked questions
Is IOSS mandatory?
No. It is optional. Without IOSS, import VAT is collected from the customer on delivery, usually with a handling fee from the carrier.
Can a non-EU company register for IOSS?
Yes, but most must appoint an EU-based intermediary to register and file for them. Businesses established in a country that has a VAT mutual assistance agreement with the EU, such as Norway, can register directly.
What does the €150 limit include?
It applies to the intrinsic value of the goods in the consignment. Transport and insurance are excluded unless they are included in the price and not shown separately on the invoice.
Does IOSS cover the €3 customs duty?
No. IOSS covers VAT only. The €3 per item duty on low-value consignments applies whatever VAT scheme is used.
What does an IOSS number look like?
It starts with IM, followed by a three-digit code for the country of registration and a seven-digit number, 12 characters in total.
