IOSS

What is IOSS?

The IOSS scheme has been in effect since July 1, 2021, and at that time replaced the old exemption for shipments up to €22. Under the IOSS, as a seller, you collect VAT at the time of sale, at the rate of your customer’s EU country. You then remit this VAT monthly via a single tax return, rather than having the customer pay VAT and customs clearance fees upon delivery. The scheme applies to shipments with an intrinsic value of up to €150, excluding VAT and shipping costs, provided those are listed separately on the invoice. If freight and insurance costs are not listed separately, they are included in calculating the €150 threshold.

When do you need an IOSS number?

If you sell directly to EU consumers from a location outside the EU, you’ll need an IOSS number as long as your shipments remain under €150. If you’re based in the EU, you can register directly with the tax authority of an EU member state. If you are based outside the EU, you need an EU-based intermediary required to comply with VAT obligations. Do you sell through a marketplace like Amazon or Etsy? If so, first check whether the platform acts as a “deemed supplier”: in that case, the platform already remits the VAT on your behalf, and you do not need an IOSS registration for those sales.

How do you apply for an IOSS number?

In the Netherlands, you can apply for an IOSS number through My Tax Authority for Businesses. If you already have a VAT number, the application is usually processed within a week. After registration, you’ll receive a number that starts with “IM,” followed by a series of digits. You must include this number on every shipment and in the electronic customs declaration so that customs can verify upon arrival that the VAT has already been paid. If the number is missing or incorrect, you run the risk that the customer will still have to pay VAT upon delivery.

IOSS and the 3-euro measure

IOSS handles the btw, not the import duties. In addition, as of July 1, 2026, a separate, temporary customs duty of €3 per declaration line applies to e-commerce shipments valued at up to €150 from outside the EU. This measure affects the same target group as IOSS but is separate from it: if you use IOSS for VAT payment, you will still pay the €3 per declaration line upon import. You can read more about this measure and the upcoming European handling fee on our page about the handling fee.

IOSS vs. OSS: The Difference

What else is changing?

Under the European ViDA reform, it was initially envisaged that platforms would be required to use IOSS for all shipments they facilitate. That requirement was removed from the final ViDA package and shifted to the broader EU customs reform, which will take effect in 2028 at the earliest. At the time of writing, there is a proposal to impose stricter registration requirements on non-IOSS users as an incentive to opt for IOSS, but this is not yet final. Regulations are subject to change. Always verify the current status.

How ECC Helps

We correctly include the IOSS number in your customs declarations to ensure that shipments are not unnecessarily delayed or subject to double taxation. We also advise on how this interacts with the 3-euro rule and any applicable European handling fee. For the complete processing of your import declarations under IOSS, we handle IOSS clearance. Not sure if your shipments are covered by IOSS? We'll assess your specific situation.