IOSS: how to stop your customers paying at customs (e-commerce)

If you sell products imported from outside the EU worth less than €150, you can use the IOSS (Import One-Stop Shop) scheme to charge VAT at the time of purchase and stop the customer paying at customs.

How does IOSS work?

1. You register for IOSS through the Spanish Tax Agency (or a tax intermediary).
2. You charge the VAT of the customer's destination country at checkout.
3. You file a monthly return with all the VAT collected.
4. The goods clear customs with no charges to the recipient.

What happens if I don't use IOSS?

The carrier will charge the customer VAT + customs handling fees on delivery. This leads to refused parcels, returns and a poor shopping experience.

At EkonYou we handle IOSS registration and the monthly returns. Request information.

Do you run an online store? Shopify Partner: VAT registration and filings in more than 50 countries, plus EPR for packaging, electrical equipment and batteries. OSS, IOSS and imports →