Key takeaways
- The Import One Stop Shop (IOSS) lets you register in one EU country and handle VAT on all B2C low-value imports (up to €150).
- VAT is collected at the point of sale, speeding up customs and preventing surprise charges for EU buyers.
- IOSS simplifies compliance, reduces admin, and improves the buyer experience—especially for non-EU sellers.
In short: The Import One Stop Shop (IOSS) is an EU VAT scheme for B2C imports of goods worth €150 or less. With IOSS, you register in one EU country and collect VAT at checkout. You then file a single monthly IOSS return. Non-EU and UK sellers must appoint an EU-based intermediary to use IOSS.
If you sell low-value goods to EU consumers, the Import One Stop Shop (IOSS) can make your VAT much simpler. The EU launched IOSS as part of its 2021 VAT e-commerce reforms. IOSS lets you register in one EU country and handle VAT on all cross-border B2C imports under €150. It speeds up customs and stops surprise charges for buyers. It also helps sellers, especially non-EU sellers, stay compliant across the EU with a single monthly VAT return.
What is IOSS?
The Import One Stop Shop (IOSS) is an EU-wide VAT simplification scheme for low-value imports. The EU launched IOSS on July 1, 2021 as part of the EU VAT e-commerce package. Its aim is to modernise how VAT is collected on low-value goods imported into the EU.
What does IOSS let you do?
- Collect VAT at the point of sale.
- Register in just one EU country to report sales across all 27 Member States.
- Avoid import VAT at the border. This speeds up delivery and gives your customers a better experience.
IOSS applies to business-to-consumer (B2C) shipments of €150 or less. It is most useful for e-commerce sellers, marketplaces, and non-EU retailers selling into the EU.
Why was IOSS introduced?
The EU introduced IOSS to make sure VAT is paid on all low-value B2C imports. Before IOSS, many low-value parcels entered the EU VAT-free under a €22 exemption rule. This rule:
- Gave non-EU sellers an unfair edge over EU sellers.
- Encouraged sellers to undervalue goods to avoid VAT.
- Led to extra customs checks, delays, and confusion.
The EU removed this exemption and launched IOSS to:
- Make sure VAT is collected the same way on all B2C imports.
- Make compliance simpler for remote sellers.
- Reduce friction at EU borders.
How does IOSS work?
IOSS works in four steps: you register once, charge VAT at checkout, share your IOSS number for customs, and file one monthly return. Here is how each step works in practice.
1. Registration
You register for IOSS in a single EU Member State, even if your customers live all over the EU.
- EU-based businesses can register directly.
- Non-EU businesses must appoint an EU intermediary (like Taxually).
2. VAT Collected at checkout
When a buyer in the EU orders goods under €150:
- You apply the correct local VAT rate for the customer’s country.
- You collect the VAT and show it on the invoice, so there are no hidden fees at delivery.
3. Customs declaration
You give your IOSS VAT identification number to your shipping carrier or customs agent. The carrier adds this number to the electronic customs data (via Import Control System 2, or ICS2). This allows pre-clearance.
4. Monthly VAT reporting
Each month, you submit a single IOSS return that sums up all qualifying sales into the EU. The Member State where you registered then passes the VAT on to the other EU countries.
| Benefit | Description |
|---|---|
| Single EU VAT return | Report all B2C import sales under €150 through one Member State. |
| No VAT on delivery | Customers pay VAT at checkout, avoiding surprise fees or delays. |
| Faster customs clearance | Your IOSS number ensures goods move faster through EU customs. |
| Fewer VAT registrations | No need to register in every country you sell to. |
| Better customer experience | Improved transparency, lower cart abandonment, higher trust. |
| Marketplace compatibility | Marketplaces can register for IOSS on behalf of sellers. |
Example:
A U.S. clothing brand sells €80 t-shirts to customers in France, Germany, and Spain. With IOSS, the brand:
- Collects VAT at the correct national rates (20%, 19%, 21% respectively).
- Submits a single monthly IOSS return in Ireland.
- Delivers goods to customers without any customs VAT or courier handling fees.
Note that IOSS covers VAT, not customs duty. From 1 July 2026, the EU charges a temporary flat customs duty of €3 per item category on parcels under €150 from IOSS-registered non-EU sellers.
Who can register for IOSS?
Both EU-based and non-EU sellers can register for IOSS. The difference is that non-EU sellers must use an EU-based intermediary.
EU-based sellers
If your business is established in the EU, you can register for IOSS directly through your national tax authority’s IOSS portal.
You don’t legally need an intermediary. Still, many EU-based businesses appoint one to simplify VAT compliance, especially when they sell across many Member States.
At Taxually, we support EU businesses with end-to-end IOSS compliance. This includes registration, return filing, and audit-ready reporting, so you can focus on growth.
Non-EU sellers
If your business is based outside the EU, you must appoint an EU-based intermediary to register for and use IOSS. The intermediary acts as your fiscal representative. It keeps you compliant and submits returns on your behalf.
Taxually can act as your IOSS intermediary, helping you:
- Register quickly and securely in the EU
- Automate monthly VAT filings across all Member States
- Ensure full compliance with IOSS rules and reporting obligations
How do IOSS registration and reporting work?
To use IOSS, you register once with basic company details and then file a return every month. Here is what each part involves.
What do you need to register?
- Company information
- EU VAT number (if EU-based)
- Intermediary details (if non-EU)
- Bank account for VAT payments
- Description of goods sold
What does IOSS reporting include?
- Country of destination
- Total number of sales
- Total VAT collected per country
- Any adjustments or returns
When are IOSS returns due?
- Submitted monthly
- Filed even if no sales were made
- Paid by the deadline (usually end of the following month)
If you file IOSS returns late or with errors, you can face:
- Loss of IOSS access
- Customs delays
- Fines or penalties
Can UK and non-EU sellers use IOSS?
Yes, UK and other non-EU sellers can use IOSS, but they must appoint an intermediary. After Brexit, UK sellers are treated as non-EU for IOSS.
- UK businesses shipping goods into the EU can use IOSS for orders under €150.
- Without IOSS, your EU buyers may face import VAT, clearance fees, and shipping delays. This is a major barrier to keeping customers.
Summary
- IOSS simplifies EU VAT for cross-border B2C sales of goods valued under €150.
- Register once in one EU country to report VAT on all eligible EU sales.
- VAT is collected at checkout, avoiding surprise import fees for EU buyers.
- Improves delivery speed by removing VAT processing at the border.
- Reduces admin with a single monthly VAT return across 27 Member States.
- Non-EU and UK sellers must appoint an EU-based intermediary (e.g. Taxually).
- Taxually supports IOSS registration, automated filings, and full compliance.
- Ideal for e-commerce businesses, marketplaces, and international retailers expanding into the EU.
Do you need help with your VAT compliance? Book a free call with one of our VAT experts to find bespoke solutions for your business, optimize your VAT costs, and reach millions of new potential customers with our automated VAT solutions.
Further reading
Everything You Need to Know About the One Stop Shop (OSS)
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
Is IOSS mandatory for low-value imports?
No, but it's highly recommended. Without IOSS, your customers will pay VAT on delivery, and you risk lower conversion rates.
What happens if goods exceed €150?
IOSS cannot be used. VAT and customs duties will be charged at import instead.
Can I file both OSS and IOSS from the same portal?
No. OSS and IOSS have separate registration portals and return obligations.
Do I need to collect VAT if I use IOSS?
Yes. VAT must be collected at the point of sale and shown on the invoice.
Can marketplaces use IOSS?
Yes. Platforms like Amazon, eBay, and Etsy can register for IOSS to report on behalf of their sellers.
What if my intermediary stops working with me?
You must appoint a new intermediary or deregister from IOSS. You cannot continue filing without one if you are a non-EU business.
