Everything You Need to Know About the Import One Stop Shop (IOSS)
If you sell low-value goods to EU consumers, the Import One Stop Shop (IOSS) can dramatically simplify your VAT obligations. Launched as part of the EU’s 2021 VAT e-commerce reforms, IOSS lets sellers register in one EU country and handle VAT on all cross-border B2C imports under €150. It streamlines customs, eliminates surprise charges for buyers, and helps businesses—especially non-EU sellers—stay compliant across the EU with a single monthly VAT return.
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.
What is IOSS?
The Import One Stop Shop (IOSS) is an EU-wide VAT simplification scheme launched on July 1, 2021 as part of the EU VAT e-commerce package. It was introduced to modernise cross-border VAT collection on low-value goods imported into the EU.
IOSS lets you:
- Collect VAT at the point of sale.
- Register in just one EU country to report sales across all 27 Member States.
- Avoid import VAT being charged at the border—speeding up delivery and enhancing the customer experience.
IOSS applies to business-to-consumer (B2C) shipments of €150 or less and is especially useful for e-commerce sellers, marketplaces, and non-EU retailers selling into the EU.
Why IOSS was introduced
Before IOSS, many low-value consignments entered the EU VAT-free due to a €22 exemption rule, which:
- Created an unfair playing field between EU and non-EU sellers.
- Encouraged undervaluation of goods to avoid VAT.
- Generated extra customs checks, delays, and confusion.
The EU removed this exemption and launched IOSS to:
- Ensure VAT is collected consistently on all B2C imports.
- Simplify compliance for remote sellers.
- Reduce friction at EU borders.
How IOSS works
IOSS is a streamlined VAT reporting system. Here’s how it works in practice:
1. Registration
You register for IOSS in a single EU Member State, even if your customers are located 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 places an order for goods under €150:
- You apply the correct local VAT rate for the customer’s country.
- VAT is collected and shown on the invoice—no hidden fees at delivery.
3. Customs declaration
You provide your IOSS VAT identification number to your shipping carrier or customs agent. This number is included in electronic customs data (via Import Control System 2 or ICS2), allowing for pre-clearance.
4. Monthly VAT reporting
Each month, you submit a single IOSS return summarising all qualifying sales into the EU. VAT is then distributed by the Member State of registration to other EU countries.
Example:
A U.S. clothing brand selling €80 t-shirts to customers in France, Germany, and Spain:
- Collects VAT at the correct national rates (20%, 19%, 21% respectively).
- Submits a single monthly IOSS return in Ireland.
- Customers receive goods without any customs VAT or courier handling fees.
Who can register for IOSS?
EU-based sellers
If your business is established in the EU, you can register directly for IOSS through your national tax authority’s IOSS portal.
While an intermediary is not legally required, many EU-based businesses choose to appoint one to simplify VAT compliance, especially when managing sales across multiple Member States.
At Taxually, we support EU businesses with end-to-end IOSS compliance—including 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 and use IOSS. This intermediary acts as your fiscal representative, ensuring compliance and submitting 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
IOSS registration and reporting
What you’ll 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
IOSS reporting includes:
- Country of destination
- Total number of sales
- Total VAT collected per country
- Any adjustments or returns
Returns must be:
- Submitted monthly
- Filed even if no sales were made
- Paid by the deadline (usually end of the following month)
Failure to file IOSS returns accurately or on time can result in:
- Loss of IOSS access
- Customs delays
- Fines or penalties
UK and non-EU sellers
After Brexit, UK sellers are treated as non-EU and must appoint an intermediary to use IOSS.
- UK businesses shipping goods into the EU can benefit from IOSS for orders under €150.
- Without IOSS, your EU buyers may face import VAT, clearance fees, and shipping delays—a major barrier to customer retention.
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.
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.
Further reading
Everything You Need to Know About the One Stop Shop (OSS)
