Selling small parcels into the EU: what is IOSS, and who pays VAT?
Answer
Since 2021-07-01 all imports into the EU pay VAT, whatever the value. IOSS covers VAT only: for consignments up to EUR 150, the seller or marketplace charges VAT at checkout and pays it through IOSS, so the buyer pays nothing on delivery. The customs declaration is separate, usually lodged by the postal or express operator as an agent, or by the recipient. Without IOSS, the buyer pays VAT on arrival, often plus a carrier fee. From 2026-07-01 a EUR 3 per-item duty also applies.
- Applies to
- Direct shipments from China to EU consumers, up to EUR 150 per consignment.
With and without IOSS
| With IOSS | Without IOSS | |
|---|---|---|
| Who charges VAT | Seller or marketplace at checkout | Buyer on arrival |
| Who files VAT | The IOSS number holder, monthly | Collected at import by the declarant |
| Customs declaration | Separate declarant: post, express, broker or recipient | Same |
| Buyer experience | Nothing to pay on delivery | Pays VAT and fees; may refuse the parcel |
Sources: European Commission guidance on low value consignments; EC customs formalities for low value consignments.
Key points
- IOSS does not cover duty. From 2026-07-01, consignments up to EUR 150 pay EUR 3 duty per item (per tariff classification), whatever the VAT scheme (see EUR 3 per item).
- The IOSS number goes in the customs declaration (data element 1316000000, code F48).
- On marketplaces (such as Amazon or AliExpress), the platform usually collects and pays the VAT, so sellers do not need to register for IOSS themselves.
What you can do
- Ask your forwarder or platform whether the shipment carries an IOSS number; if not, how much the buyer will pay on arrival.
- State in your quote whether EU VAT is included.
- VAT rates differ between EU countries (17%-27%); calculate by destination country.
Still uncertain
- How the EUR 3 duty and IOSS filing work together in practice; the detailed rules still need checking.
- Whether a newer version of the guidance has appeared after Rev.1.