Import One Stop Shop (IOSS)

The IOSS simplification scheme was introduced in the EU in 2021. The aim of the scheme was to simplify low value EU orders shipped from outside the EU directly to consumers within the EU.

Under the IOSS scheme you can ship orders where the intrinsic value of the order is €150 less direct to consumers within the EU without incurring import VAT at point of entry. This significantly streamlines the shipping process and prevents a scenario where customer is unexpectedly charged taxes and duties upon delivery.

The Taxmatic platform is designed to fully automate your IOSS VAT compliance process. With integrations into Shopify, WooCommerce and SHOPLINE, we can automatically pull your orders data to file and pay your IOSS VAT returns.

For non-EU business Taxmatic will act as your EU-Intermediary, which is a requirement to be able to register for the IOSS Scheme.

Connect your online store or platform with Taxmatic to calculate, file and pay your IOSS VAT.

Benefits of Using the IOSS VAT Scheme for EU Direct to Consumer Sales

Simplified VAT Compliance

The IOSS allows you to report and pay VAT for all EU sales through a single monthly return, regardless of the number of EU countries you sell to.

Improved Customer Experience

Customers pay the VAT at the point of purchase, ensuring transparency and avoiding unexpected fees or delays at customs.

Enhanced Trust & Reputation

Offering upfront VAT payment builds customer trust, as buyers won’t face surprise charges upon delivery.

Access to Entire EU Market

The IOSS scheme applies to sales of goods valued up to €150, enabling easier access to millions of consumers across the EU.

FAQ

Who needs to use IOSS?

Brands selling direct to consumers in the EU, where the orders are fulfilled from outside the EU.

Is IOSS mandatory for businesses selling to EU customers?

IOSS is not mandatory, however it is strongly advised to offer your EU customers a localised buying experience.

What types of goods are not covered under IOSS?

Goods subject to excise, such as alcohol & tobacco. Also, certain pharmaceutical goods.

Can non-EU businesses register for IOSS?

Yes, non-EU businesses can register for IOSS by using an EU intermediary.

Can an EU business register for IOSS?

Yes, EU businesses can register for IOSS, where they fulfil orders directly from outside the EU.

Do I need a VAT representative to register for IOSS?

If you are a non-EU business, you will need an EU VAT representative to use the IOSS Scheme.

Can I use IOSS for multiple EU countries?

Yes, IOSS covers all EU Member States.

What happens if I sell goods over €150?

The order cannot be shipped under the IOSS scheme and taxes and duties will arise at point of entry into the EU.

How does IOSS affect customs clearance?

Simplifies customs clearance procedures.

Do I still need to pay customs duties under IOSS?

No, as the intrinsic value of the goods will be below €150 no customs duty will be applicable.

What should I include on the customs declaration when using IOSS?

Need to include IOSS number to ensure it gets processed correctly and no import tax gets charged at point of entry.

How does IOSS impact shipping and delivery times?

Simplifies the customs process and ensures no payments are due when goods reach the EU, therefore will speed up delivery times.

Do I need IOSS if I sell through online marketplaces (Amazon, eBay, AliExpress)?

This will depend on whether you’re an EU or non-EU based seller.

If I sell via a marketplace, who is responsible for VAT reporting?

This will depend on whether you’re an EU or non-EU based seller.

Can I use IOSS for both my website and marketplace sales?

Yes, IOSS can be used for all your sales, however it is important to understand first whether the marketplace you sell on is responsible or not.

Do I need separate IOSS registrations from different sales channels?

No, one IOSS number is all that’s needed for one seller.

Trusted by