Import One Stop Shop (IOSS)
What is Import One Stop Shop (IOSS)?
Import One Stop Shop (IOSS) is an optional EU VAT scheme that lets sellers charge EU VAT at checkout on goods imported from outside the EU in consignments worth €150 or less, then declare all of it in a single monthly return filed in one member state. One IOSS registration covers sales to consumers in all 27 member states, so a seller doesn't need a separate VAT registration in each country.
IOSS went live on 1 July 2021 as part of the EU VAT package, which removed the old VAT exemption on low-value imports. Every parcel entering the EU has carried VAT since that date, regardless of value. What IOSS changes is the collection point: VAT moves from the border to the checkout, so the buyer pays a VAT-inclusive price and the parcel clears customs without a further VAT charge on delivery. Without IOSS, VAT is collected at import, usually by the carrier, who bills the recipient for the VAT plus a handling fee before releasing the parcel.
Key facts
- Scheme type: optional EU VAT simplification for distance sales of imported goods
- Live since: 1 July 2021
- Value limit: €150 intrinsic value per consignment. Intrinsic value is the price of the goods alone, excluding shipping and insurance where those are shown separately on the invoice
- IOSS number format: 12 characters, "IM" followed by 10 digits (for example IM0123456789)
- VAT rate applied: the destination rate of the buyer's member state
- Filing: one return per calendar month covering all member states, due by the end of the following month
- Excluded: excise goods (alcohol, tobacco) at any value, and any consignment above €150
- Record retention: 10 years
How IOSS works
- Register in one member state. The seller, or an EU-established intermediary acting for them, registers and receives an IOSS number in the IM format. That single number covers sales into all 27 member states.
- Charge VAT at checkout. The destination-country VAT rate is applied on the , and the buyer pays a VAT-inclusive total. Nothing further is owed on arrival.
- Pass the IOSS number into the customs declaration. The carrier or customs broker quotes the number on the import declaration. Customs sees the VAT is already accounted for and releases the consignment without charging import VAT.
- File one monthly return. The return splits VAT collected by member state and is filed in the member state of identification by the end of the following month.
- Pay once and keep the records. A single payment goes to the member state of identification, which distributes each share to the other member states. Underlying transaction records are retained for 10 years.
Who it applies to
- Non-EU sellers shipping directly to EU consumers. Most must appoint an EU-established intermediary, who registers on the seller's behalf and becomes the person liable for the VAT. A seller established in a third country with a VAT mutual assistance agreement with the EU (currently only Norway) can register without one for goods dispatched from that country.
- EU-established sellers importing low-value goods for onward sale to consumers. They register directly, no intermediary needed.
- Marketplaces and other electronic interfaces that qualify as deemed suppliers. When a platform facilitates the sale, the platform rather than the underlying becomes responsible for collecting and remitting the VAT.
- Merchant of record arrangements. Where a acts as the legal seller, that entity is the one holding the IOSS registration.
IOSS covers goods only. VAT on digital services sold to EU consumers runs through the separate non-Union OSS scheme.
Why it matters
- The checkout price is the final price. Buyers aren't asked for VAT plus a carrier handling fee at the door, which is the point where low-value cross-border orders get refused on delivery and returned to sender.
- One registration replaces up to 27. A single monthly filing covers every member state, instead of a VAT registration and return cycle per country.
- Clearance is quicker. IOSS consignments clear on a simplified declaration with no import VAT to assess. Since 1 July 2026, non-IOSS B2C consignments of €150 or less have to clear customs in the destination member state rather than being cleared centrally and moved onward, which affects routing and delivery times.
- The €3 flat customs duty is separate from the VAT question. The EU ended the €150 customs duty exemption on 1 July 2026 and replaced it with a temporary €3 duty per item, expected to run until 1 July 2028. It is charged to the declaring business, not collected from the buyer, and it applies whether or not the seller uses IOSS. IOSS changes how VAT is collected, not whether the duty is owed.
