What Is IOSS? The EU Import One-Stop Shop Explained

The Import One-Stop Shop (IOSS) is an optional EU scheme that lets a seller charge VAT at checkout on low-value goods shipped to EU consumers from outside the EU, then declare and pay that VAT in one monthly return instead of the customer paying import VAT when the parcel arrives. It covers goods in consignments with an intrinsic value of up to EUR 150, and it has applied since 1 July 2021.

This article is educational information, not tax advice. Rules, thresholds and national procedures can change, so confirm the current position with the tax authority of the Member State where you register.

IOSS at a glance

What does IOSS change?

Before July 2021, goods worth EUR 22 or less could enter the EU free of VAT. The European Commission abolished that exemption as part of its e-commerce VAT reforms, so VAT now applies to imported goods of any value.

Without IOSS, the customer typically pays the import VAT when the carrier delivers the parcel. With IOSS, the seller charges the VAT at the point of sale, using the VAT rate of the customer's country, and then declares and pays it through the scheme. The Commission describes the benefit as letting non-EU suppliers collect, declare and pay the VAT directly to the tax authorities rather than having customers pay it on delivery.

Which sales can use IOSS?

IOSS covers a narrow set of transactions. Each of these needs to be true:

• The goods are imported into the EU from a third country or third territory.
• The sale is to a consumer, a non-taxable person.
• The consignment has an intrinsic value of up to EUR 150.
• The goods are not subject to excise duties.

Sales that do not meet those tests sit outside IOSS. Goods above EUR 150 are handled through the normal import process at customs. Goods you already hold in EU stock and sell to a consumer in another Member State fall under a different scheme, covered below.

When a marketplace facilitates the sale of imported goods in a consignment worth up to EUR 150, the marketplace is treated as the supplier for VAT purposes, the "deemed supplier". It charges the VAT and declares it under its own IOSS number. That applies to marketplaces such as Amazon, eBay and Etsy when they facilitate the sale. You need your own IOSS registration only for orders you sell directly, for example through your own online store.

Who can use IOSS, and when do you need an intermediary?

The Commission's guidance says a seller established in the EU does not need an intermediary. A seller established outside the EU generally has to appoint one.

An intermediary must be established in the EU. It registers first in its own Member State, which allocates it an identification number in the format INxxxyyyyyyz. That number is not a VAT number. The intermediary then registers each seller it represents, and each seller receives its own IOSS VAT identification number in the format IMxxxyyyyyyz.

There is one exception in the guidance: a seller established in a third country that has concluded a mutual assistance agreement with the EU on VAT recovery does not need an intermediary for goods dispatched from that country. Norway is the example the Commission gives. If that seller ships goods from another third country, it does need an intermediary.

For a US seller, this usually means appointing an EU-based intermediary before registering. See Do US companies have a VAT number? for how foreign VAT registrations fit with US tax IDs.

How does IOSS work in practice?

1. Register. A seller or its intermediary registers in a Member State of identification and receives an IOSS VAT number.
2. Charge VAT at checkout. The price shown to the customer includes VAT at the rate of the destination country.
3. File a monthly return. The IOSS return is submitted electronically to the Member State of identification by the end of the month following the period.
4. Pay. Payment goes to the same Member State, with the reference of the return. The Member State passes the return and payment on to the countries where the customers are located.

An IOSS return does not replace the seller's other VAT obligations, such as a domestic VAT return. Returns are generally made out in a single currency, normally euro.

Getting your IOSS number to customs

Charging VAT at checkout only helps if customs sees a valid IOSS number when the parcel arrives. The Commission's guidance on low-value consignments sets out how that works:

• The number has to reach customs at the latest in the customs declaration. For postal shipments, it can travel in the postal operator's electronic message.
• The seller, or the marketplace acting as deemed supplier, is responsible for providing a valid number.
• One IOSS number covers a whole consignment, so a single declaration cannot mix IOSS and non-IOSS goods.
• If the number is missing or invalid, customs cannot apply the scheme and collects import VAT on arrival, usually from the customer, who has already paid VAT at your checkout.

In practice, give your IOSS number to every carrier, postal operator and customs broker that ships EU orders for you, and set your store or shipping software to send it with each EU consignment worth EUR 150 or less. Larger orders go through the normal import process without it.

What changed in 2026: the EUR 3 duty and the EUR 2 handling fee

Until 30 June 2026, consignments worth up to EUR 150 entered the EU free of customs duty, so IOSS sellers dealt only with VAT. Council Regulation (EU) 2026/382 of 11 February 2026 removed that relief. The Commission's guidance of October 2026 describes three changes:

• A EUR 3 customs duty from 1 July 2026 to 1 July 2028. A temporary flat duty of EUR 3 per item applies to consignments with an intrinsic value of up to EUR 150, and the guidance says it applies to all goods imported using IOSS. An item is a tariff classification, not a unit: five identical T-shirts carry one EUR 3 duty, while three T-shirts and a watch carry EUR 6.
• A EUR 2 Union handling fee, expected from 1 November 2026. Customs collects a fixed EUR 2 per item on goods sold in distance sales. Unlike the EUR 3 duty, the fee is not temporary, and it also applies to consignments above EUR 150.
• Normal duty rates from 1 July 2028. When the temporary duty ends, goods sold in distance sales are subject to the normal duty rate, whatever their value.

IOSS still covers the VAT. The duty and the fee are customs charges, paid through the customs declaration rather than the IOSS return. Until 30 June 2028, the guidance makes the IOSS holder, or its indirect representative, the first choice of declarant for these goods. If a carrier or customs broker declares your parcels as your representative, agree in advance how it will charge the duty and the fee back to you, and include them in the landed cost of each EU order.

IOSS vs OSS: what is the difference?

The EU runs three related schemes, and sellers often confuse them.

The Commission's OSS guidance also describes an annual EUR 10,000 threshold. Below it, certain EU-established sellers' cross-border B2C services and intra-EU distance sales can stay subject to VAT in their home Member State. It is separate from the EUR 150 IOSS limit.

OSS and IOSS returns are filed by the end of the month following the period, so a quarterly OSS return for July to September is due by 31 October.

Common mistakes with IOSS

• Using IOSS for goods already in the EU. If the goods are in an EU warehouse before the sale, they are not imports at the time of sale, so IOSS does not apply.
• Applying it above the limit. A consignment above EUR 150 in intrinsic value is outside the scheme.
• Including excise goods. The scheme excludes goods subject to excise duties.
• Assuming it is compulsory. The scheme is optional. A seller that does not use it leaves the import VAT to be collected at import.
• Treating the IOSS number as a regular VAT number. It is a separate identifier used for this scheme.
• Registering without an intermediary when one is required. Non-EU sellers generally need one.

How does IOSS relate to your VAT number?

An IOSS number is not the same as the VAT number a business holds in one country. For the formats of VAT numbers by country and how to validate them, see What is a VAT number?, and our free VAT number checker for EU numbers. For the wider picture of selling to Europe, see international ecommerce tax obligations and best cross-border VAT compliance software.

Compliance software such as Kintsugi's VAT product can monitor VAT thresholds and support registrations and filings, which is useful when a business sells into several EU countries.

Not sure which countries you owe VAT or GST in? The international tax quiz gives a country-by-country estimate from seven questions.

Frequently asked questions

What does IOSS stand for?

IOSS stands for Import One-Stop Shop. It is the part of the EU VAT e-commerce rules that covers imported low-value goods sold to consumers.

Is IOSS mandatory?

No. The Commission describes the schemes as optional. A seller that does not use IOSS leaves the VAT to be collected when the goods are imported.

What is the EUR 150 limit?

IOSS applies to distance sales of imported goods in consignments with an intrinsic value of up to EUR 150. It does not apply to goods subject to excise duties.

Do goods sold through IOSS pay customs duty?

Since 1 July 2026, yes. All goods imported using IOSS are subject to a temporary customs duty of EUR 3 per item until 1 July 2028, and a EUR 2 handling fee per item is expected to apply from 1 November 2026. Both are paid through the customs declaration, not the IOSS return.

What happens if a parcel arrives without an IOSS number?

Customs cannot apply the scheme, so it collects import VAT when the goods are imported, usually from the customer. Make sure every carrier you use sends your IOSS number with each eligible consignment.

Do US sellers need an intermediary for IOSS?

Generally yes. A seller established outside the EU needs to appoint an EU-established intermediary, unless it is established in a country with a mutual assistance agreement with the EU and ships from that country. Norway is the Commission's example.

Is IOSS the same as OSS?

No. OSS covers intra-EU distance sales of goods and cross-border services and is filed quarterly. IOSS covers imported goods up to EUR 150 and is filed monthly.

Does IOSS apply to sales to businesses?

IOSS covers distance sales to consumers, meaning non-taxable persons. Sales to VAT-registered businesses follow different rules, so check them separately.

Sources

• European Commission, VAT One Stop Shop portal and its pages on the One Stop Shop and on declaring and paying.
• European Commission, Guide to the VAT One Stop Shop.
• European Commission, Guidance on import and export of low value consignments and explanatory notes on the VAT e-commerce rules.
• European Commission, EU customs reform, EUR 3 customs duty for low-value parcels and guidance on the temporary EUR 3 customs duty and the Union handling fee.
• European Commission, New future-proof VAT rules: e-commerce made easy.