Added

EU IOSS configuration for VAT calculations

We’ve added a new account setting to specify whether you use the Import One-Stop Shop (IOSS) for shipments into the European Union (EU). The setting changes how VAT is calculated on shipments valued at €150 or less. Shipments valued over €150 aren’t eligible for IOSS and always use non-IOSS treatment, regardless of this setting.

  • IOSS: VAT is calculated on items + shipping & insurance.
  • Non-IOSS: VAT is calculated on items + shipping & insurance + duties.

To preserve our existing calculation logic, the setting is on by default. If you don’t collect EU VAT at checkout under an IOSS number, turn it off by navigating to Account → API access and disabling the I’m registered for IOSS (EU) checkbox.

More information on this setting can be found in our help center article.