What is the IOSS value threshold?

IOSS applies to imported consignments with an intrinsic value of €150 or less. Goods in a consignment valued above €150, and excise goods such as alcohol and tobacco, cannot use IOSS and follow standard import VAT and customs procedures.

No, IOSS is optional. But without it, import VAT on low-value goods is collected from the customer on delivery, usually with a carrier handling fee, which often causes refused parcels. IOSS makes the process smoother by charging VAT at checkout instead.

Do I need IOSS if I sell on a marketplace?

Often not for the imported low-value sales themselves. For these, the marketplace is frequently treated as the deemed supplier and uses its own IOSS number to collect and remit the VAT. Check your marketplace's rules, as your own IOSS registration may still be relevant for direct sales.

Can a non-EU business use IOSS?

Yes, but a non-EU business generally has to appoint an EU-established intermediary, who registers the business for IOSS and submits the monthly returns on its behalf.

Glossary

IOSS

Import One-Stop Shop

IOSS (Import One-Stop Shop) is an EU VAT scheme that lets sellers collect import VAT at the point of sale on consignments of goods valued at €150 or less imported from outside the EU, and report it through a single monthly return. It simplifies VAT on low-value imports and lets parcels clear customs faster.

Last updated: June 2026

Key facts

IOSS applies to imported consignments with an intrinsic value of €150 or less; goods above that threshold fall outside IOSS.
It was introduced as part of the EU VAT e-commerce reforms that took effect on 1 July 2021, alongside the removal of the previous low-value import VAT exemption.
With IOSS you charge EU VAT to the customer at checkout, so they are not billed import VAT on delivery.
One IOSS registration covers sales to all EU member states, reported in a single monthly IOSS VAT return.

What IOSS is for

Before the 2021 EU VAT reforms, goods imported into the EU below a small value were exempt from import VAT. That exemption was abolished, meaning import VAT now applies to commercial goods regardless of how low their value is. IOSS was created to make charging and reporting that VAT manageable for low-value e-commerce.

Under IOSS, instead of VAT being collected from the customer when the parcel arrives, the seller (or a marketplace acting as deemed supplier) charges the correct EU VAT at the moment of sale. The seller then declares and pays all that VAT through one monthly IOSS return, rather than dealing with each member state separately.

IOSS is specifically for distance sales of imported goods in consignments not exceeding €150 in intrinsic value. Goods worth more than €150, and goods subject to excise duty such as alcohol and tobacco, are outside the scheme and follow standard import procedures instead.

Why IOSS matters for delivery and customs

The big practical benefit of IOSS is a smoother customer experience. When VAT has already been paid via IOSS, the parcel is flagged with a valid IOSS identifier and clears customs without the recipient being asked to pay import VAT or a carrier handling fee on the doorstep. That avoids the surprise charges and refused deliveries that plague non-IOSS low-value imports.

For the seller, IOSS replaces 27 potential national VAT obligations on these imports with one registration and one monthly return. Non-EU sellers generally must appoint an EU-established intermediary to use IOSS, who registers them and submits the returns on their behalf.

When you sell through an online marketplace, the marketplace is often treated as the deemed supplier for these imported low-value sales and handles IOSS itself using its own IOSS number. In that case the marketplace collects and remits the VAT, and you supply the goods to the marketplace flow rather than registering for IOSS yourself.

Example

A non-EU seller ships a €40 phone case to a customer in Italy. Using IOSS, the seller charges Italian VAT at checkout, includes the IOSS number in the customs data, and the parcel clears Italian customs with no import VAT charged to the buyer on delivery. The seller reports that sale, along with all other EU sales that month, in one IOSS return.

Why it matters for marketplace sellers

IOSS lets you show customers a single all-in price at checkout with no surprise import VAT on delivery, which reduces refused parcels and improves conversion for low-value goods.
If you sell through a marketplace that acts as deemed supplier, it usually handles IOSS for imported low-value orders, so check whether you need your own registration or can rely on the marketplace's.
IOSS only covers consignments of €150 or less; for higher-value imports you still deal with standard import VAT and customs, so your fulfilment logic must split orders by value.
As a non-EU seller you generally need an EU-established intermediary to register and file IOSS returns for you, which is an extra setup step and cost to plan for.