The EU introduced IOSS to:
IOSS covers B2C sales of goods that are outside the EU when sold, shipped in consignments with an intrinsic value of €150 or less. Once registered, you charge EU customers their local VAT rate at checkout. Because VAT is already collected, the shipment clears customs faster - your customer isn't billed again on delivery.
IOSS is an optional EU VAT scheme that allows businesses to sell to customers all over the EU on a single VAT return. It was introduced alongside One Stop Shop (OSS) in July 2021 to replace low-value consignment relief.
You can register for IOSS if:
An IOSS number is an identification number assigned to business registered for Import One Stop Shop. Your IOSS number tells Customs that you’ve already collected VAT on the sale. Customs will clear the shipment without requiring your customers to do anything.
If you can say yes to everything on this list, your sale qualifies for IOSS:
If you sell services, or your goods are already in the EU when sold, you may need One Stop Shop or Non-Union One Stop Shop instead.
If your business is based inside EU or Northern Ireland, then you can register for IOSS directly with your local tax authority. If your business is based outside the EU, then you will need an intermediary - a business that is based in the EU which can submit your VAT payments and is jointly liable for what you owe. Then you will be registered in whichever country your intermediary is based in. For example, SimplyVAT is registered in Ireland so if you choose us as your intermediary, you’ll be registered for IOSS in Ireland.
Registering is simple, and we can get the process started with a few details.
Yes. As of 1 July 2026, EU has removed the €150 customs duty exemption and introduced a flat €3 duty per item on eligible low-value parcels. But IOSS itself has not changed. This is a customs change, which is different from VAT rules IOSS covers. IOSS still simplifies how you collect & report VAT, but it no longer means duty-free. Read our full breakdown of EU Small Parcel Levy
| DDP | DAP | IOSS | |
|---|---|---|---|
| Pros | No surprise charges for customers; fast customs clearance | No VAT collection/reporting for you | No surprise charges for customers; fast clearance; one registration covers the whole EU |
| Cons | You're liable for all costs; VAT registration needed per country; can get expensive at volume | Customers may refuse to pay, causing returns; uncertain total cost lowers conversion | Only covers orders ≤ €150; requires VAT-inclusive pricing across your store |
IOSS registration can be completed in as little as 3 working days —start on Monday, and you could have your IOSS number by Thursday.
IOSS has some rules you need to follow once you’re registered:
Showing your customers the right VAT rate for them can get complicated. What’s standard rate in one country can be reduced in another. Plus some EU countries have more than one reduced rate. Download our EU and UK VAT Rates PDF and get all the rates for all 27 EU states (and we’ll update you if anything changes). If you’re not sure what rate you should be applying, you can always ask our VAT experts. They’ll do all the research for you.
Working with SimplyVAT has been a game-changer for our business. Their team is incredibly responsive, ensuring all our VAT filings are submitted on time without any hassle. They’ve taken a huge weight off our shoulders, allowing us to focus on growth.
I was dreading dealing with VAT for our growing e-commerce business, but SimplyVAT made it so much easier. Their team provided clear, step-by-step guidance and was always available to clarify doubts. It’s rare to find a service that combines expertise with such approachable support.
SimplyVAT has been a fantastic partner for our business. Their team is always proactive, answering questions before we even ask them, and their expertise has saved us countless hours on VAT compliance. Highly recommend their services to any business looking to simplify their tax processes.
Really smooth process from start to finish. I represent a Kiwi company entering the EU market and looked around at options for helping sort VAT. SimplyVAT were excellent right from the start - making what would have been a very complicated process simple and clear. Clear communication and a nice backend portal made the process run smoothly.
Worked with SimplyVat for about 2 years for their IOSS service (I've since stopped marketing to EU so am no longer a client currently). Honestly, flawless service. I never had to worry about their submissions because they were always on the ball.
We’ve been working with Simply VAT since end of 2023 supporting our IOSS compliance. We have found them very helpful and particularly Abhay on the data side who has gone above and beyond to resolve issues and ensure 우리는 hit payment deadlines. Really important with a service like this that you can get hold of someone when there is an issue and Abhay has always been quick to respond when needed. They have also provided some very thorough consultancy advice via Paulina. A good company to work with.
Worked with SimplyVat for about 2 years for their IOSS service (I've since stopped marketing to EU so am no longer a client currently). Honestly, flawless service. I never had to worry about their submissions because they were always on the ball.
