Cross-border selling · VAT at checkout for consignments up to €150
EU IOSS and import VAT
IOSS is the VAT lane for low-value imports: the buyer pays VAT at checkout and the parcel arrives without a border VAT charge.
Key facts
| Scope | B2C consignments imported from outside the EU with a value up to €150 |
|---|---|
| What it collects | Import VAT, charged at the point of sale and declared through the IOSS return |
| Deemed supplier | Marketplaces and platforms can be the deemed supplier and take on the VAT obligation |
| Without IOSS | Import VAT is collected at the border, usually with a carrier handling fee |
| Record keeping | Keep the IOSS number and the monthly return; the number is checked by carriers and platforms |
| Official source | European Commission, VAT One Stop Shop |
IOSS is a VAT lane, not a duty exemption
IOSS changes where and how import VAT is collected; it does not remove duty. A parcel that uses IOSS can still owe the temporary flat duty and the handling fee described in the 2026 reform. Sellers sometimes treat an IOSS number as proof that the border cost is solved, then discover the duty line in the settlement.
The IOSS number must be valid and used consistently. Carriers check it, and a missing or mismatched number pushes the parcel back to border collection, which is slower and usually adds a handling charge.
Marketplace sale vs your own store
When a marketplace is the deemed supplier, it usually collects and remits the VAT and the seller's invoice is treated differently. On your own store, you either register for IOSS and collect VAT at checkout or let the parcel go through border collection. The two routes have different cash-flow and customer-experience consequences.
Model the VAT-inclusive price the customer actually pays, then compare it with the landed cost under each route. The cheaper route on paper can be the worse one if it creates a border surprise that drives refusals and support tickets.
Frequently asked questions
Does IOSS cover duty?
No. IOSS collects import VAT for eligible consignments up to €150. Duty, including the temporary flat duty, is separate and must be modelled on its own line.
Who can use an IOSS number?
The seller or the deemed supplier, depending on the sale structure. Marketplaces often act as deemed supplier and handle the VAT; direct sellers can register and use IOSS themselves.
What happens if the IOSS number is missing?
The parcel usually falls back to import VAT collection at the border, with a carrier handling fee and a slower delivery. The buyer may be asked to pay before delivery.
Is IOSS optional?
For eligible B2C imports, using IOSS is optional but usually improves the customer experience. Without it, VAT is collected at import. Confirm your registration obligations with a tax adviser.
Ask a compliance question
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