Glossary
What is the Import One Stop Shop (IOSS)?
The Import One Stop Shop (IOSS) is an EU VAT scheme that lets sellers collect import VAT at checkout on low-value consignments sold to EU consumers, then declare it through a single monthly return instead of registering in every member state. |
How does IOSS work?
The seller charges the destination country’s VAT rate at the point of sale, quotes the IOSS number on the customs declaration, and the parcel clears without VAT being collected at the border. One monthly return then covers sales across all 27 member states.
What IOSS covers and what it doesn't
- Distance sales of imported goods to EU consumers below the low-value threshold
- Excise goods are excluded from the scheme entirely
- Above the threshold, normal import procedures and customs duty apply
- Non-EU sellers generally need an EU-established intermediary to register
Why it reshaped e-commerce
IOSS launched on 1 July 2021, the same day the EU removed the €22 VAT exemption on low-value imports. Before that, small parcels arrived VAT-free. After it, every consignment carried VAT and IOSS became the mechanism that stopped couriers collecting it on the doorstep.
iCustoms applies IOSS treatment automatically and keeps the numbers straight across UK, EU and US parcel flows. |
