The IOSS limit is the 150-euro intrinsic value threshold that applies to parcels shipped under the scheme. IOSS (Import One Stop Shop) makes it easy to deal with VAT when you’re selling to customers in the EU. But you can only use it for orders worth less than €150. Orders worth more than that will have to be shipped DAP (Delivered at Place), which is a much worse customer experience. Those parcels will be held at customs until your customer pays for any import VAT, duties and fees due. If they’re not expecting to do that, then you’re likely to hear complaints.
It’s not fair to you to get bad reviews because of customs procedures. Especially after you’ve gone to the lengths of getting registered for IOSS. So, how do you manage your customers' expectations? In this blog I’ll show you how to explain the IOSS limit to shoppers, so they can buy with confidence.
Let’s start with what your customers need to know. There are three main things to communicate:
Before we get started on what to tell your customers, there’s one important thing you must not do.
Don’t display your IOSS number! If you make your IOSS number public, you’ll make it very easy to defraud you. IOSS numbers are unique and are used to identify who’s shipped a parcel. If someone ships an order using your IOSS number, you’ll be liable for the VAT on that sale.
IOSS can only be used to ship parcels with an intrinsic value of €150 or less. The Intrinsic Value of a shipment is the price your customer paid you for the goods you’re sending them. It doesn’t include shipping or insurance costs unless you included them in the price (if you displayed them separately, it doesn’t count). Taxes and any other charges (like import duty) don’t count towards the Intrinsic Value either.
Parcels shipped under IOSS clear customs quicker than those shipped DAP. That’s because your IOSS number indicates to customs that the recipient of the parcel has already been charged VAT.
Most European online shoppers have experienced their orders being held at customs until they’ve paid the import VAT. That experience will make them hesitant to buy from you. By communicating that they’ll pay VAT at checkout, not customs, you'll reduce your cart abandonment rates.
Since it was introduced in 2021, registering for Import One Stop Shop has meant you can ship qualifying parcels duty-free. That has begun to change. Taxes and fees aimed at low-value parcels (those worth less than €150) begin to roll out in 2026.
You can find all the details about these fees, taxes and levies in our blog: EU Small Parcel Levy and National Handling Fees.
If you’re not going to cover these fees for your customers (even if you include it in your pricing structure), you might want to warn them. Depending on how the fees are implemented, they might cause delays at customs like how import VAT once did.
We’ve got four recommendations for how you can explain the IOSS limit to shoppers on your website:
Having something on your product pages is beneficial in two ways. First, it’s somewhere your customers will already be looking, so they’re more likely to see it. Second, it gives them the information for them to consider whilst they’re browsing.
A good example of this is clothing brand Storror, who have a “Customs and Taxes Info” drop down on all their product pages.
Storror explain the IOSS limit by leading with IOSS's the benefits to the customer. They also link to an in-depth guide to give their customers details that won’t fit in the drop down. If you’re looking for IOSS explainers you can link to, we have some pages that can help:
If drop downs aren’t your thing, you can add icon next to the listed price to give you an anchor for a tool tip. It’s a good option if your product pages have a more minimal design.
The checkout process gives you a lot of data that you can use to target your customers, making it the perfect place for dynamic messages. You can use logic to display separate messages at checkout when an EU country is selected as the shipping address:
The message for when the cart value is over the IOSS limit is perhaps obvious. It gives your customer a chance to adjust their order before committing to their purchase. However, telling customers that their cart is under the IOSS limit is helpful too. It lets them know that the VAT on their order has been taken care of, a reassurance that will make them more likely to complete checkout. Knowing the limit might also encourage them to top up their basket!
A Frequently Asked Questions page is where shoppers go when they’re looking for quick answers. It’s a great tool for setting customer expectations on a variety of subjects, not just import tax and duties.
When you write the answers for your FAQs use plain language and keep them short and sweet. Your shipping policy should have the details, so link to it in your answers where you need to. This is another great place to link to a more in-depth guide by someone like SimplyVAT.
Some questions you should consider answering are:
Every ecommerce store needs a shipping policy - it tells your customers what to expect. Plus, here you'll have the room to go into detail on topics like Import One Stop Shop. Add a section with a heading that signals which customers the information is for, like “Cart Value for EU Orders”.
Here’s our suggested wording for what to include in your shipping policy:
We collect EU VAT at checkout using the Import One‑Stop Shop (IOSS) scheme for orders valued at €150 or below. This helps your parcel clear customs faster and prevents additional VAT charges on delivery. IOSS applies only to consignments valued at €150 or less, as set by the EU VAT Directive.
