IOSS

The Import One-Stop Shop (IOSS) is a special EU system for collecting and reporting VAT on low-value goods imported into the European Union.

It was introduced on 1 July 2021 to simplify cross-border eCommerce.

How IOSS works

• Applies to: Imports of goods valued at €150 or less.
• Covers: B2C (business-to-consumer) sales from non-EU countries into the EU.
• VAT collection: The merchant (or their marketplace/platform) collects EU VAT at checkout.
• Reporting: The merchant files a single monthly IOSS return, paying VAT for all EU member states in one place.

This means buyers don’t get hit with surprise VAT charges on delivery—VAT is already paid when the order is placed.

Benefits of IOSS

• For buyers:
  • No unexpected VAT bills on delivery
  • Faster customs clearance
• For merchants:
  • Simplified VAT reporting across all EU countries
  • Better customer experience with transparent pricing

When does IOSS not apply?

• Goods valued over €150 (normal import VAT rules apply)
• B2B sales where the buyer provides a valid EU VAT number
• Goods subject to excise duties (e.g., alcohol, tobacco)

Who can use IOSS?

• Non-EU merchants can register for IOSS directly or via an EU-based intermediary.
• Online marketplaces (e.g., Amazon, eBay) often handle IOSS automatically on behalf of their merchants.