If you sell physical products to EU consumers from outside the EU — from the US, UK, China or anywhere else — every parcel worth €150 or less now carries VAT at the buyer's local rate. Since July 2021 the old €22 duty-free de minimis is gone. The Import One Stop Shop (IOSS) is how you keep those deliveries smooth instead of surprising customers with a customs bill.
Your three options at checkout
- IOSS — you collect VAT at checkout, declare it monthly, and parcels clear customs without the customer paying anything on delivery. Best customer experience.
- Deemed supplier marketplace — if you sell through Amazon, eBay or Etsy, the marketplace often becomes responsible for collecting the VAT under its own IOSS number. You ship with their IOSS data. Check each platform's documentation.
- Do nothing (DDU/DAP) — the courier or postal operator collects VAT plus a clearance fee from the customer at the door. High refusal rates, angry customers, poor reviews. Avoid for low-value goods.
How IOSS registration works for non-EU sellers
A business established outside the EU cannot register for IOSS directly. You must appoint an intermediary established in the EU (a fiscal representative, or an authorised intermediary such as a courier or logistics provider) who registers in one member state and files on your behalf. Expect:
- A registration fee and monthly retainer (typically €50–€250/month depending on volume).
- A unique IOSS identification number (IM + 11 digits) that must appear on shipping labels and customs paperwork.
- Personal liability: the intermediary is jointly and severally liable for your VAT, so they will vet your business and may require a deposit.
Register in the country where your intermediary is established — or in France, if your goods are shipped from outside the EU via a French logistics hub.
What changes in your shop and shipping flow
- Checkout calculates destination VAT. You charge the exact rate of the buyer's country — our VAT rates by country table lists all of them, from 17% to 27%.
- Invoice and parcel data. The IOSS number goes on the shipping label; the customs declaration (CN22/CN23 or the carrier's electronic equivalent) shows the goods' intrinsic value and the VAT-inclusive total.
- HS codes. Product classification codes are required for the monthly return; assign them once per SKU and store them.
- Proof of export. Keep transport documents showing goods actually left the origin country — tax authorities audit this.
The €150 limit and how to handle bigger orders
IOSS covers consignments with an intrinsic value (goods value, excluding shipping and taxes) up to €150. Above that:
- The customer pays import VAT and possibly duty on delivery, or
- You register for VAT in the destination country (or ship from EU stock), or
- You sell B2C through a marketplace that handles it.
Splitting one order into two parcels to stay under €150 is fraud — customs looks at order value, not parcel value.
Monthly IOSS return in practice
Your intermediary files a monthly return listing VAT collected per member state. Payment is due within one month of the return period. If you use a marketplace as deemed supplier, its IOSS covers those sales — but sales from your own website are yours alone, and mixing the two is the most common compliance error.
Checklist before your first EU shipment
- Appoint an EU intermediary and receive your IOSS number.
- Add destination-country VAT calculation at checkout.
- Update shipping labels and customs forms with the IOSS number and HS codes.
- Decide who handles returns and refunds (refunded VAT is deducted from the next return).
- Reconcile checkout-collected VAT against the intermediary's monthly report.
For goods already inside the EU, read OSS vs IOSS explained, and verify business customers' numbers with the EU VAT validator.