Import One Stop Shop (IOSS): how non-EU sellers charge VAT on low-value parcels

Last updated 27 Oct 2026 · India

Short answer. Since 1 July 2021, the Import One Stop Shop (IOSS) lets a seller charge VAT of the customer's EU country at the point of sale on distance sales of imported goods in consignments of an intrinsic value up to €150 (excise goods excluded). The goods then enter the EU exempt from import VAT when the IOSS number is given to customs. The seller files one IOSS return every month and pays the VAT by the end of the following month. A seller established outside the EU generally has to appoint an intermediary established in the EU, unless its country has a VAT mutual-assistance agreement with the EU (for example, Norway). IOSS is optional; without it, the customer or carrier pays import VAT and often a handling fee.

Step by step

Check your parcels: goods value per consignment up to €150, excluding transport if shown separately.
Appoint an EU intermediary if you are outside the EU.
Register for IOSS in one EU country and get the IOSS number.
Charge destination-country VAT at checkout and pass the IOSS number to your carrier.
File the monthly return and pay by the end of the next month; keep records for 10 years.

Common mistakes

Using IOSS for parcels above €150. Import VAT and customs apply as normal.
Charging one flat VAT rate instead of each country's rate.
Printing the IOSS number on the parcel label instead of sending it in the customs data.

Not tax advice. This is a free explainer of the EU VAT rules; check the Commission's OSS portal or your adviser.

Frequently asked questions

What is the IOSS value limit?

Consignments of an intrinsic value up to €150.

When is the IOSS return due?

Monthly, by the end of the month after the tax period, with payment by the same date.

Does a non-EU seller need an intermediary for IOSS?

Generally yes, unless established in a country with a VAT mutual-assistance agreement with the EU, such as Norway.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 27 Oct 2026.

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