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Ship to the EU using an IOSS

Ship to the EU using an IOSS 

Summary

The Import One-Stop Shop (IOSS) system simplifies the collection and payment of VAT on low-value goods sold to customers in the EU. If you have an IOSS number, you can provide it at the point of booking.

This article covers:

  • What IOSS is and how it works

  • When you need an IOSS number

  • Which shipments qualify

  • Alternatives if you don’t have one

What is IOSS?

The Import One-Stop Shop (IOSS) is a European Union (EU) system introduced on 1 July 2021 to make it easier for businesses selling goods to EU consumers to collect and pay VAT.

It allows sellers and online marketplaces to:

  • Charge VAT at the point of sale, instead of leaving it to the customer at delivery

  • Declare and pay all EU VAT through a single online portal, rather than registering in each EU country individually

In short, the IOSS simplifies VAT compliance for business-to-consumer (B2C) sales of low-value goods imported into the EU (valued at €150 or less).

When is an IOSS number required?

You need an IOSS number if you:

  • Sell goods valued at €150 or less directly to private customers (B2C) in EU countries

  • Ship those goods from outside the EU (for example, from the UK to France or Germany)

  • Want to handle all EU VAT obligations through a single registration

The IOSS number must be included on your customs declarations and your commercial invoice so the courier and customs authorities know VAT has already been paid.

How does IOSS work?

Here’s what happens when you use IOSS:

  1. The customer sees VAT included in the price at checkout.

  2. You (or your online platform) report and pay that VAT monthly through the IOSS portal.

  3. The parcel is cleared through EU customs without extra VAT or handling fees, making delivery faster and smoother.

Without IOSS, your customers would have to pay VAT and admin fees on delivery, which often leads to delays or refused shipments.

Which goods and shipments qualify?

  • Eligible:

    • Parcels valued at €150 or below

    • Goods sold to private individuals (not businesses) in the EU

    • Items shipped from non-EU countries

  • Not eligible:

    • Goods over €150 (normal import VAT applies)

    • Business-to-business (B2B) shipments

    • Goods subject to excise duties (e.g. alcohol or tobacco)

Who can register for IOSS?

  • EU-based businesses can register directly with their local tax authority.

  • Non-EU businesses (such as UK sellers) must appoint an EU-established intermediary — a tax representative responsible for reporting and paying VAT through the IOSS system.

Once registered, you’ll receive an IOSS identification number, which you’ll use on customs declarations for qualifying shipments.

What if you don’t have an IOSS number?

If you don’t use IOSS:

  • Your EU customers will need to pay VAT on delivery, plus any clearance or handling fees charged by the courier.

  • This can slow down delivery and increase the likelihood of refused parcels.

Alternatively, you can:

  • Continue to ship Delivered Duty Paid (DDP) using a carrier’s billing service (e.g. DHL’s DTP option), or

  • Register for IOSS via a third-party intermediary to simplify future EU deliveries.

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