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IOSS and the €150 line: EU imports for sellers

IOSS lets you charge the buyer's country's VAT at your checkout on consignments up to €150 and remit it through one monthly EU return — the parcel then clears without border VAT collection or carrier presentation fees. What changed in July 2026: the €150 customs-duty exemption is abolished, and a temporary flat duty of €3 per item now applies to low-value distance sales until the new EU customs regime arrives (scheduled July 2028). Above €150: normal import VAT plus HS-based duty, and IOSS doesn't apply.

Why sellers register for IOSS

Without IOSS, the carrier collects VAT from your buyer on delivery plus a presentation fee of several euros per parcel. That surprise charge drives refusals and one-star reviews. With IOSS, the buyer paid everything at checkout.

Marketplaces handle this for you: for qualifying consignments sold through a marketplace, the marketplace is the deemed supplier and uses its own IOSS number.

July 2026: the duty exemption is gone

The EUR 150 customs duty exemption for low-value consignments is abolished as of 1 July 2026. This is IN FORCE, not proposed - low-value e-commerce parcels are no longer duty-free. In its place, A temporary flat customs duty of EUR 3 per item applies to items supplied as distance sales of imported goods in consignments not exceeding EUR 150, from 1 July 2026 until 1 July 2028, after which normal customs duties calculated via the EU Customs Data Hub will apply.

Because the temporary duty is per item, it hits multi-item low-value parcels hardest: a €40 consignment with four items owes €12 in duty — 30% of the goods value. Single higher-value items under €150 feel it least. Re-run your EU unit economics with the landed cost calculator.

A separate per-parcel handling fee is still only a proposal, not law. A Union handling fee on distance sales of imported goods is PROPOSED, not in force. Per the Council mandate it would apply from November 2026 at the earliest; its content and date remain under negotiation in Council-Parliament trilogues on the customs reform.

Common questions

Do I need an EU intermediary to use IOSS?
Non-EU sellers generally must appoint an EU-established intermediary to register for IOSS — a real compliance cost to weigh against carrier-collection pain.
Is VAT the same across the EU?
No — you charge the buyer's country's rate (Germany 19%, France 20%, others differ). IOSS files it in one return but at each country's rate.

Official sources behind these numbers

  • The Import One-Stop Shop (IOSS) lets sellers declare and pay VAT at point of sale for distance sales of goods imported from third countries in consignments of intrinsic value not exceeding EUR 150; without IOSS the customer pays VAT at import plus possible carrier clearance fees. European Commission (DG TAXUD) · verified 2026-07-21 · effective 2021-07-01
  • The EUR 150 customs duty exemption for low-value consignments is abolished as of 1 July 2026. This is IN FORCE, not proposed - low-value e-commerce parcels are no longer duty-free. European Commission (DG TAXUD) · verified 2026-07-21 · effective 2026-07-01
  • A temporary flat customs duty of EUR 3 per item applies to items supplied as distance sales of imported goods in consignments not exceeding EUR 150, from 1 July 2026 until 1 July 2028, after which normal customs duties calculated via the EU Customs Data Hub will apply. European Commission (DG TAXUD) · verified 2026-07-21 · effective 2026-07-01
  • An electronic interface (marketplace/platform) that facilitates a supply of goods imported from a third country in a consignment not exceeding EUR 150 to a non-taxable person is the 'deemed supplier': it is treated as having received and supplied the goods itself and owes the VAT on the sale. European Commission (DG TAXUD) · verified 2026-07-21 · effective 2021-07-01
  • Standard VAT rate in Germany is 19%. European Union (Your Europe) · verified 2026-07-21
  • Standard VAT rate in France is 20%. European Union (Your Europe) · verified 2026-07-21
  • A Union handling fee on distance sales of imported goods is PROPOSED, not in force. Per the Council mandate it would apply from November 2026 at the earliest; its content and date remain under negotiation in Council-Parliament trilogues on the customs reform. European Commission (DG TAXUD) · verified 2026-07-21

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