How to send parcels

What is IOSS? Explaining Import One Stop Shop

IOSS stands for Import One-Stop Shop. It is an online VAT registration scheme which simplifies the payment of VAT on goods sold online, to customers in the EU, valued at €150 or less.

It allows your e-commerce business to collect, declare, and pay VAT on all your EU sales in one go, instead of dealing with individual tax rules for each EU country you sell to.

What is in this IOSS guide?

How IOSS works in 5 steps

How to register for IOSS

Which EU countries use IOSS

How much VAT will I pay?

Bite-sized IOSS FAQs

Read this IOSS guide if you want…

No hidden charges for your customers when their parcel arrives in-country.

Faster transit times and quicker clearance through customs.

To charge VAT at the point of sale and have a single monthly VAT payment for all goods sold to the EU.

How IOSS works in 5 easy steps

The goods you’re selling must originate from a country outside the European Union, regardless of where your company is located and the total value of the parcel contents must be under €150.

Get an EORI Number: An EORI (Economic Operators Registration & Identification) number is a unique identifier assigned to businesses and individuals who are involved in the import or export of goods into or out of the European Union. It is a legal requirement which helps authorities track your businesses trade activity in each EU country you ship to. Read our guide on EORI Numbers for e-commerce businesses.
Register for IOSS:
- If you are a marketplace seller: You can likely use the marketplaces IOSS number.
- If you are an EU based business: You can register directly with your in-country tax authority.
- If you are outside of the EU: You'll need to appoint an intermediary established in the EU to register on your behalf.
Skip to ‘’how to register for IOSS’’ for more information.
Display VAT at the checkout: IOSS allows VAT to be collected from your customers at the checkout. If you display the VAT amount to be paid by the customer during the checkout process, this level of transparency builds trust and avoids confusion.
Collect the VAT on your sales: Charge the correct VAT rate based on the customer's location. This will vary depending on the EU country they're in. See our FAQ on what the European Import VAT costs are by country?
File Monthly Returns: The tax owed on your shipments is usually paid at the end of the month following the sale (up to 60 days later). Submit a single IOSS VAT return each month and pay the collected VAT to the tax authority where you registered.

How to register for IOSS

To register for IOSS, you can choose a few options:

Woman with tablet explaining to another woman

Appoint an intermediary: Who will perform the following actions on your behalf:

Submit monthly IOSS VAT returns that contain the total value of the goods sold, your VAT rate and the total VAT amount to be paid.
Make a monthly payment of any Local VAT due as declared in the IOSS VAT return.

You will be charged any VAT paid and possibly processing fees by the intermediary. For businesses outside of the EU you will need to appoint an intermediary unless you have a registered EU business address.

Marketplaces and IOSS: If you sell through an online marketplace, they are likely to have registered for IOSS. You can enter the IOSS number of the marketplace in your shipping tool (such as eConnect) to link the records.

Register directly with your in-country tax authority: You can find links to register with your local EU authority on the European Commissions e-commerce VAT one stop shop site.

e-Commerce platform IOSS integrations: Many popular e-commerce platforms such as shopify, Woo, Magento etc offer additional plug-ins or apps like Xendo which handle any IOSS payments for your e-commerce store so your business can simply ‘pay-as-you-go’.

At DHL eCommerce we provide fast, affordable, and reliable delivery & returns options across Europe with our Parcel Connect services. Your e-commerce or marketplace store can integrate seamlessly with Parcel Connect via our eConnect plug-in which allows you to enter the IOSS number (as well as collecting all the information you need for your ‘’paperwork’’ – read more here) at the point of your delivery or returns booking.

Which EU countries use IOSS?

IOSS applies to the EU member states of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

If you’re new to international shipping or looking to expand your e-commerce store across-borders we’ve got some handy country reports on what online shoppers are browsing and buying online. Check them out;

FRANCE

GERMANY

ITALY

NETHERLANDS

POLAND

SPAIN

SWEDEN

How much VAT will I pay?

EU import VAT varies by country and ranges from 17% in Luxembourg to 27% in Hungary. VAT is an in-country tax payment which is imposed by countries to generate revenue or to protect local industries against foreign competition, or both. All applicable duties and taxes on the goods being shipped from one country to another are usually paid before the goods are released from customs in the destination country. In our 5 step guide to overseas and cross-border shipping we answer how much import VAT is charged for each of the European countries which you can find here.

A bite-size IOSS FAQs

Any business selling goods to consumers in the EU, regardless of where your business is located and the goods being sent are valued at €150 or less.

The goods you’re selling must originate from a country outside the European Union, regardless of where your company is located.

The person you're shipping to must live in an EU country and be buying the goods for their own personal use. This means IOSS doesn't apply to sales to businesses.

The total value of the goods in the shipment must be €150 or less, excluding shipping costs and any other charges.

It applies to the total value of all items in a single parcel, not the individual products purchased. For example two items valued at €70 each, packed and delivered in a single parcel would qualify for IOSS. However, IOSS cannot be used for multiple shipments on the same day, from the same sender to the same recipient, if the total value of all those shipments equals over 150 Euros.

Exclusions can apply, for example, goods that are subject to excise duty, such as alcohol, tobacco, or perfume. If in doubt, check with the VAT office of the country you are exporting to.

If the total value of all items in a single parcel is more than €150, IOSS will not apply. Import taxes may be applicable on goods worth more than €150.
You can read more about who is responsible for paying the duties and taxes in country here. It can be the buyer (your customer) or the seller (your business) which is called Delivery Duty Paid (DDP) or Delivery Duty Unpaid/ Delivered At Place (DDU/DAP)

No, it’s not a mandatory requirement. You could opt to pay VAT manually, but this means you will have to register for VAT in at least one EU country and ensure that you file VAT returns for every country you ship to which could become very complex and time consuming.

The benefit of registering for IOSS is, it provides your customers with greater transparency regarding the import taxes applicable to them at the point of payment (during the checkout process). It also enables both you as a business owner and your customer to experience faster transit times as IOSS provides faster clearance through customs.

If you decide against becoming IOSS registered or the value of your goods are over €150, you can still choose to send under DDP (Delivered Duty Paid) or DAP (Delivered at Place) terms.

If you sell through an online marketplace, they are likely to have registered for IOSS. You can enter the IOSS number of the marketplace in your parcel delivery booking tool (such as eConnect) to link the records.

IOSS is only applicable for businesses selling to consumers. If your e-commerce store is selling to businesses, you can send goods under the DDP (Delivered Duty Paid) or DAP (Delivered at Place) terms.

All fees and customs charges are taken at the point of sale so your customers won’t get a bill to pay any customs fees when their parcel arrives in the destination country.

IOSS is a valuable tool for small businesses looking to expand into the European market. By simplifying VAT compliance, IOSS helps you save time and money while creating a better shopping experience for your customers. So why wait? Get started with DHL eCommerce today and watch your EU sales soar!