IOSS Explained: When You Need It and When You Don't

IOSS (Import One-Stop Shop) is the EU scheme that lets a seller collect VAT at checkout on B2C consignments valued at EUR 150 or less, and declare it once instead of having the buyer pay at the door.

Who needs it

Any non-EU seller shipping directly to EU consumers, where the consignment value is up to EUR 150, benefits. Marketplaces such as Amazon and eBay act as deemed suppliers and handle IOSS for sales made through them — so if you only sell on a marketplace, you usually do not need your own IOSS number.

What it does not cover

• Consignments above EUR 150: duty and VAT are collected at import, and IOSS cannot be used.
• B2B sales: reverse charge rules apply instead.
• Goods subject to excise duty.

Without IOSS

The parcel arrives with VAT unpaid, the carrier pays it and charges the recipient a handling fee. In practice a large share of buyers refuse delivery, which turns into return shipping, storage and a refund — usually more expensive than registering.

Practical checklist

• Register through an intermediary if you have no EU establishment.
• Put the IOSS number on the commercial invoice and transmit it electronically to the carrier.
• Keep the monthly IOSS return accurate: VAT is due on the sale price, including shipping charged to the customer.

Data note: thresholds and procedures change. Always confirm against the current EU customs reform proposals before relying on a specific figure.