IOSS
The EU Import One-Stop-Shop scheme for declaring VAT on low-value goods imported from outside the EU and sold to EU consumers.
What it is
IOSS (Import One-Stop-Shop) is the EU scheme, live since 1 July 2021, for collecting VAT on distance sales of goods imported from outside the EU with an intrinsic value of €150 or less. The seller (or the electronic interface facilitating the sale) charges the destination-country VAT at checkout and declares it through a single monthly IOSS return.
Where you meet it
You meet IOSS as a 12-character identifier starting with "IM" (for example IM1234567890), which you quote on the customs declaration so the parcel clears without VAT being collected again at the border. In a tax-rules engine, IOSS is the branch that fires when the goods ship from outside the EU, the consignment value is at or below €150, and the buyer is a non-business EU consumer. Stripe Tax exposes the "IOSS" option on its registrations page.
What IOSS replaced
Before 1 July 2021, the EU operated a low-value consignment relief that exempted imports under €22 from VAT entirely. The IOSS reform removed that exemption and made every imported consignment to EU consumers subject to VAT, with IOSS as the simplification mechanism. Since the reform, every parcel arriving from outside the EU carries VAT, regardless of value, with collection happening either at checkout (under IOSS) or at the border (without IOSS).
Why sellers register for IOSS
Without IOSS, parcels arrive at the EU border without prepaid VAT. Customs collects VAT (and often a handling fee from the postal carrier) before releasing the parcel to the consumer. The consumer experience is poor: surprise charges and delivery delays are routine.
With IOSS, the seller charges destination VAT at checkout, the parcel clears customs without further VAT collection, and the consumer experience matches a domestic purchase. This is why most cross-border e-commerce platforms now require their sellers to register for IOSS or to provide an IOSS number from a fiscal intermediary.
Common confusions
- The €150 threshold is the intrinsic value of the goods, excluding transport and insurance shown separately on the invoice.
- IOSS numbers are not validated through VIES. They are issued by a single member state of identification and checked via the EU's dedicated IOSS registry lookup.
- A non-EU seller registering for IOSS typically needs an EU-established intermediary unless the seller is established in a country with a mutual-assistance agreement with the EU on VAT.