IOSS (Import One Stop Shop)
What is IOSS?
IOSS stands for Import One Stop Shop. It is a special VAT reporting system introduced by the European Union on 1 July 2021. The main goal of IOSS is to make cross-border e-commerce simpler, more transparent, and fairer.
With IOSS, sellers and online marketplaces can collect VAT at the point of sale and declare it centrally via one portal. This means EU consumers no longer face unexpected costs when receiving goods from outside the EU.
Who is IOSS for?
IOSS applies mainly to:
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Online shops outside the EU selling directly to EU consumers.
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Marketplaces and platforms such as Amazon, eBay, and AliExpress.
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Logistics and fulfillment companies that handle cross-border e-commerce shipments.
EU-based businesses that import goods from outside the EU and sell them to consumers can also use IOSS.
When is IOSS required?
The IOSS scheme only applies to B2C sales of goods valued up to €150 that are shipped from outside the EU to EU consumers.
Key rules:
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Orders above €150 are excluded and taxed at import.
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IOSS is for B2C shipments only (not B2B).
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The VAT rate must match the consumer’s destination country.
Benefits of IOSS
Both consumers and sellers benefit from IOSS.
For consumers:
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No unexpected VAT or handling fees on delivery.
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Transparent total price during checkout.
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Faster customs clearance and delivery.
For sellers:
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A single IOSS number is enough for VAT across all EU countries.
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Simplified VAT administration and one consolidated monthly return.
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Happier customers, fewer delivery issues, and reduced returns.
How VAT is handled under IOSS
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The seller or marketplace registers for IOSS in an EU member state.
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At checkout, VAT is calculated based on the destination country’s VAT rate.
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The consumer pays VAT directly at checkout.
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The seller/marketplace submits a monthly IOSS return via the portal.
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Customs see the IOSS number and release the goods without charging the consumer again.
How to obtain an IOSS number
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Non-EU businesses must appoint an intermediary (often a tax representative in the EU) who files VAT on their behalf.
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EU businesses can register directly with their national tax authority.
IOSS in practice
Example: A consumer in Germany orders a €20 phone case from a Chinese seller that uses IOSS.
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At checkout, 19% German VAT is applied → €23.80 total.
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The IOSS number is included with the parcel’s customs declaration.
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The package is released without extra fees on delivery.
Without IOSS, the consumer would pay VAT plus a clearance fee to the courier, often making the purchase much more expensive.
Difference from other customs rules
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CN22 / CN23 customs forms are still required, but IOSS speeds up clearance.
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De-minimis exemption was abolished: all imports are taxed, unless VAT is prepaid through IOSS.
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B2B shipments are excluded; standard import VAT and duties apply instead.
Key points to remember
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IOSS applies only to shipments ≤ €150.
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Orders above €150 are taxed at import with possible customs duties.
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Without IOSS, couriers collect VAT and fees from the consumer.
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Using the correct IOSS number avoids delays and double taxation.