Is IOSS mandatory for selling into the EU?

No — a seller can register for it. Without it, import VAT is charged when the parcel is imported, and the customer is the person liable for it.

Who needs an IOSS intermediary?

A seller with no establishment in the EU. The intermediary must be a taxable person established in the EU, and registers and files the monthly return for the seller.

Does IOSS apply to orders over €150?

No. It covers consignments with an intrinsic value of up to €150; above that, import VAT and duty are paid at import in the usual way.

Term

Import One-Stop Shop (IOSS)

The Import One-Stop Shop (IOSS) is the EU scheme that lets a seller of imported goods in consignments worth up to €150 charge the buyer's country's VAT at checkout and pay it through one monthly return. The parcel then clears without import VAT at the border. Sellers outside the EU need an EU intermediary.

Also called IOSS, IOSS number, IOSS VAT return, IOSS intermediary, import scheme for distance salesApplies in EUUpdated 14 October 2026

How it works

The seller registers — through an intermediary if it has no EU establishment — and receives an IOSS number in the format IMxxxyyyyyyz.
At checkout, VAT is charged at the rate of the buyer's country, because VAT is paid where the goods are consumed, at the moment payment for the order is accepted.
The IOSS number goes on the customs declaration, and the import itself is exempt from import VAT.
The seller declares and pays the VAT in its monthly IOSS return, due by the end of the month after the tax period.

Worked example: a €120 parcel

Order €120, buyer in a country with 21% VAT · with IOSS: €25.20 VAT charged at checkout, none at the border · from 1 July 2026, plus €3 customs duty per declaration line · without IOSS: import VAT is due at import, and the customer is the person liable

The €3 duty is Council Regulation (EU) 2026/382's, from 1 July 2026 until 1 July 2028, counted per declaration line whatever the quantity. The VAT rate is illustrative.

What it covers, and what it doesn't

The scheme began on 1 July 2021, when the EU abolished the VAT exemption for imported goods below €22. It covers consignments with an intrinsic value of up to €150; goods subject to excise duties are excluded. An intermediary must itself be a taxable person established in the EU. The Commission also expects a Union handling fee of €2 per item, on distance sales of any value, to apply from 1 November 2026.

The mistake people make

Assuming IOSS settles everything at checkout. It settles VAT only: from 1 July 2026 the €3 customs duty per declaration line is due on the same low-value parcels, and from 1 July 2028 they pay the normal duty rate. A checkout price that includes VAT but not duty will be short.

FAQ