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Short answer
IOSS (Import One-Stop Shop) is the EU system that allows VAT on sales from outside the EU to consumers in the EU, worth up to €150, to be collected at the time of sale and paid with a single monthly return. Sellers outside the EU usually register for IOSS through an intermediary established in the EU.
How does IOSS work?
- 1VAT at the point of sale
When selling to a consumer in the EU, the seller adds the VAT rate of the buyer's country to the price and collects it.
- 2Declaring the IOSS number
The seller's IOSS number is passed to the carrier in the shipment data.
- 3Fast customs clearance
As customs knows the VAT has been paid, it releases the shipment without collecting anything from the buyer.
- 4Monthly return
The seller pays the VAT on all EU sales with a single monthly IOSS return.
Who should use IOSS?
- Sellers who regularly sell goods worth up to €150 to consumers in the EU
- Brands selling from their own e-commerce site (e.g. Shopify)
- Sellers who want fewer refused deliveries and fewer complaints about "surprise taxes"
IOSS and the 2026 customs change
IOSS only covers VAT. The €3 customs duty per product category applied to shipments under €150 from 1 July 2026 is separate from IOSS. Details: the EU's 2026 customs change.
What are the obligations under IOSS?
| Topic | Explanation |
|---|---|
| Intermediary | Sellers outside the EU usually register for IOSS through an intermediary established in the EU |
| Monthly return | Sales under IOSS are declared every month and the VAT is paid |
| Scope | Only consumer sales shipped from outside the EU and worth up to €150 |
| Sharing the number | The IOSS number is passed to the carrier with the shipment data; it is not shared publicly |
Frequently asked questions
What is IOSS?
It is the EU system that lets VAT be collected at the time of sale on sales from outside the EU to consumers in the EU worth up to €150.
What is an IOSS number?
It is the VAT identification number given to a seller registered for IOSS and passed to the carrier in the shipment data.
How do Turkish sellers register for IOSS?
Sellers outside the EU usually register by appointing an intermediary established in the EU.
Does an Etsy seller need an IOSS number?
Usually not; the marketplace collects the VAT with its own IOSS number.
Can IOSS be used for shipments over €150?
No. IOSS can only be used for shipments worth up to €150; for shipments above that, VAT is paid on import.