EU IOSS configuration

By default, Dutify calculates VAT on EU shipments valued at €150 or less as if you are registered for the Import One-Stop Shop (IOSS). If you don't use IOSS, you can turn this off so that VAT is calculated the way it will be charged at import.

What is IOSS?
IOSS is an EU VAT scheme for goods sold to EU consumers from outside the EU, in shipments valued at €150 or less. Sellers registered for IOSS charge VAT at checkout and declare it in a monthly IOSS return, so the customer pays nothing further on delivery.
For more background, see IOSS.

How the IOSS setting works in Dutify

The setting changes which charges are included in the VAT calculation:

IOSS (on)
1. VAT is calculated on Items + Shipping & Insurance
Non-IOSS (off)
1. VAT is calculated on: Items + Shipping & Insurance + Duties & Additional Charges

The difference is that duties and additional charges are included in the VAT calculation when not using IOSS.

Shipments valued over €150 aren't eligible for IOSS and always use non-IOSS treatment, regardless of this setting.

Example calculation

Let's say you have a shipment to an EU country with a 20% VAT rate, containing items worth €30 and €5 shipping:

	IOSS (on)	Non-IOSS (off)
Items	€30.00	€30.00
Shipping & Insurance	€5.00	€5.00
Customs duty	€3.00	€3.00
EU handling fee	€2.00	€2.00
VAT base	€35.00	€40.00
VAT (20%)	€7.00	€8.00
Total landed cost	€47.00	€48.00

Why change the IOSS setting?

If you don't collect EU VAT at checkout under an IOSS number, VAT will be charged at import instead. Turning the setting off ensures your landed cost calculations match what your customers will actually pay.

If you're registered for IOSS, leave the setting on.

How to configure the IOSS setting

Login to your account.
Go to Settings > API Access and locate the I'm registered for IOSS (EU) checkbox.
Tick or untick the checkbox.
Save configuration.

Your IOSS setting will now be applied to all future landed cost calculations.