IOSS (Import One-Stop Shop)

The IOSS (Import One-Stop Shop) is an EU VAT scheme that lets sellers charge VAT at checkout on goods shipped from outside the EU to EU consumers, for consignments worth up to €150. Instead of the customer paying import VAT and courier fees at delivery, the seller collects the destination country's VAT at the point of sale and reports it all through a single monthly IOSS return.

IOSS took effect on July 1, 2021 as part of the EU's VAT e-commerce package — the same reform that abolished the old €22 low-value exemption, making every commercial import into the EU subject to VAT. Full rules are on the European Commission's official One-Stop Shop portal.

How does IOSS work?

1. Register once. One IOSS registration, made in a single EU member state, covers sales to consumers in all member states. Most non-EU sellers must appoint an EU-established intermediary to register and file on their behalf.
2. Charge VAT at checkout. The seller charges the VAT rate of the customer's country on qualifying orders (consignments up to €150).
3. Ship with the IOSS number. The IOSS number travels with the customs data, so the parcel clears import without VAT being collected at the border.
4. File one monthly return. All EU-wide IOSS sales are declared and the VAT paid through a single monthly return in the member state of registration.

The customer's experience is the whole point: the price paid at checkout is final, and the parcel arrives like a domestic delivery — the same no-surprises outcome that DDP shipping achieves for larger consignments.

IOSS vs. OSS: what's the difference?

The names are nearly identical and the confusion is universal. Both are one-stop VAT reporting schemes from the same 2021 reform, but they cover opposite situations:

Aspect	IOSS (Import One-Stop Shop)	OSS (One-Stop Shop)
Where goods ship from	Outside the EU, directly to the consumer	Inside the EU (e.g. from a warehouse in one member state to consumers in others)
Value limit	Consignments up to €150	No consignment value limit
What it replaces	Import VAT collected at the border on each parcel	Separate VAT filings for cross-border B2C sales in each destination country
Filing rhythm	Monthly return	Quarterly return
What it does NOT remove	Customs declarations (goods are still imported)	VAT registrations triggered by storing inventory in a country

When does IOSS apply — and when does it stop helping?

IOSS covers B2C consignments of goods up to €150 intrinsic value, shipped from outside the EU. It does not cover consignments above €150 (normal import rules and duties apply), excise goods like alcohol and tobacco, or B2B sales.

Two structural points matter for scaling brands. First, when you sell through a marketplace such as Amazon, the marketplace is usually the "deemed supplier" for imported consignments up to €150 — its IOSS number applies to those sales, not yours. Second, IOSS only exists for goods crossing the border per order. The moment you move to local fulfillment — storing stock in an EU warehouse or Amazon FBA — those sales are domestic or intra-EU, IOSS no longer applies to them, and storage-based VAT registrations take over. IOSS is a market-testing tool, not an end-state for a serious EU business.

What do brands get wrong with IOSS?

• Applying the €150 limit per item instead of per consignment. The threshold is the intrinsic value of the whole shipment. Splitting one order into several parcels to stay under it is treated as avoidance.
• Registering without the required intermediary. Most non-EU sellers cannot hold an IOSS registration directly — an EU-established intermediary must register and file for them, and shares responsibility for the VAT.
• Using their own IOSS number for marketplace orders. Where the marketplace is the deemed supplier, its IOSS number governs the consignment; mixing numbers causes double taxation or border delays.
• Treating IOSS as their EU VAT strategy. IOSS handles small direct-from-abroad parcels only. It does nothing for consignments over €150, for locally fulfilled inventory, or for the import setup — an EORI number, customs brokerage, and an importer of record are still needed the moment inventory moves in bulk.

FAQ

Is IOSS mandatory?
No — it is optional. Without it, qualifying parcels still enter the EU, but import VAT is collected on arrival, typically with a courier handling fee charged to your customer at the door. IOSS exists because that experience kills conversion and drives delivery refusals.

Does IOSS apply to orders over €150?
No. Consignments above €150 intrinsic value follow normal import rules: customs duties become payable and import VAT is collected through standard clearance — which is where DDP shipping and an importer-of-record setup take over.

Do I need IOSS if I sell through Amazon in Europe?
Usually not for those sales. For imported consignments up to €150 sold via a marketplace, the marketplace is the deemed supplier and its IOSS number applies. And once your inventory sits in European fulfillment centers, IOSS is irrelevant to those sales entirely — local VAT registrations govern them instead.

IOSS returns, intermediaries, VAT registrations, import setup — EU tax compliance is a moving stack of obligations that changes as you scale. eBrands absorbs the whole stack as your Merchant of Record, so selling to Europe works from day one — see how it works for physical-goods brands.