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Sales tax glossary

What is IOSS?

The Import One Stop Shop (IOSS) is an EU VAT scheme for goods shipped to EU consumers from outside the EU in consignments worth €150 or less. The seller or marketplace charges VAT at checkout and reports it monthly through one registration, so customers don't pay import VAT on delivery.

Example

A US store registered for IOSS ships a €60 order to a customer in Germany. It charges German VAT at checkout, and the parcel clears customs without the customer paying import VAT.

Source: European Commission: VAT One Stop Shop (opens in a new tab)

Why it matters for sellers

Without IOSS, customers pay import VAT, and often a carrier handling fee, on delivery, which leads to refused parcels. Most non-EU sellers need an EU-based intermediary to register.

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Related terms

This definition is general information, not tax or legal advice. Rules vary by jurisdiction and change over time.

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