IOSS €150 Limit: What Counts, What Doesn’t and What Happens Above It

The Import One-Stop-Shop (IOSS) lets a seller outside the EU charge VAT at checkout, so the customer pays nothing more when the parcel arrives. It has one hard limit: €150 per consignment. Get the limit wrong and your customer pays VAT twice, or is asked for import VAT, duty and a carrier fee at the door.

This guide explains what counts towards the €150, what does not, what happens above it and how the 2026 customs changes affect it. hellotax does not offer IOSS registrations or intermediary services; we explain the rules because they decide whether IOSS fits your business at all.

The short answer

• IOSS covers B2C distance sales of goods imported from outside the EU in consignments with an intrinsic value of €150 or less.
• Intrinsic value is the price of the goods. Separately invoiced transport and insurance do not count, and neither do taxes.
• The limit applies per consignment. You cannot split an order into several parcels to stay under it.
• Excise goods, such as alcohol and tobacco, are excluded whatever their value.
• Above €150, IOSS cannot be used: the import is taxed at the border, normally with the customer paying import VAT, customs duty and a carrier fee on delivery.
• Since 2026, IOSS parcels also pay a €3 customs duty and a €2 handling fee per customs item.

What counts towards the €150

The test uses the intrinsic value of the consignment (Irish Revenue IOSS manual, Commission guidance):

Item	Counts towards €150?
Price of the goods	Yes
Transport and insurance shown separately on the invoice	No
Transport and insurance included in the price and not shown separately	Yes
VAT and other taxes	No
Customs duty, the €3 duty and the €2 handling fee	No

Example. A jacket sold for €140 plus €15 shipping shown as a separate line has an intrinsic value of €140: IOSS applies. The same jacket sold for €155 with free shipping has an intrinsic value of €155: IOSS does not apply.

Per consignment, not per item or per order

A consignment is everything shipped together from one sender to one recipient. If one order goes out as two parcels on the same day to the same customer, customs can treat them as one consignment. The Commission’s guidance is explicit: a consignment cannot be split to bring goods under €150, and customs may check whether an order was artificially split.

The reverse also matters. A customer who buys two €90 items in one order has a €180 consignment. Your shop needs to decide at checkout whether the order can go through IOSS, not item by item.

Goods that never qualify

• Excise goods: alcohol and tobacco products, whatever the value. Some member states also treat alcohol-based perfumes as excise goods, so check the destination.
• B2B sales: IOSS is for consumers. A business customer imports the goods itself and deducts the import VAT with the customs document.

Currency conversion

If you price in dollars, pounds or yuan, the €150 test depends on the exchange rate:

• You test the limit with the European Central Bank rate on the day the payment is accepted.
• Customs tests it again on import with its own monthly customs rate. A €149 order can look like €151 at the border.
• The Commission recommends showing the euro price on the invoice to avoid double taxation.
• In your IOSS return, sales are converted at the ECB rate of the last day of the month.

If your prices sit close to €150, leave a margin: an order near the limit may be refused under IOSS at the border.

IOSS is all or nothing

Once you use IOSS, every eligible sale of €150 or less has to go through it. You cannot pick IOSS for some low-value orders and leave others to be taxed at the border (Commission guidance).

When the IOSS number goes missing

The IOSS number has to reach customs with the parcel, usually through your carrier’s electronic data. If it is missing or invalid, customs refuses the VAT exemption and charges import VAT again: your customer pays VAT twice, once at checkout and once at the door. Making sure the number travels with the parcel is the seller’s responsibility, and the refund to the customer is usually yours too.

What happens above €150

Above €150 the normal import procedure applies:

• Import VAT at the rate of the country of import.
• Customs duty at the normal tariff rate for the product.
• The €2 EU handling fee per customs item, since 1 November 2026.
• The carrier’s clearance fee, if the carrier pays all this on the customer’s behalf.

If nothing else is arranged, the customer pays all of it on delivery, which is the situation that causes refused parcels and complaints. We explain the consumer side, with real carrier fees, in import charges on delivery.

If you want to deliver duty paid above €150, you or a representative have to act as the importer. That normally means a VAT registration in the country of import and charging local VAT on the sale. For regular sales, many sellers find it simpler to hold stock in the EU.

The 2026 changes: €3 duty and €2 handling fee

The €150 limit still decides whether IOSS applies, but it no longer means duty-free. Since 1 July 2026, IOSS consignments pay a €3 customs duty per customs item, and since 1 November 2026 a €2 handling fee per item. If you charge both to your customer at checkout, they are part of the taxable amount in your IOSS return. Full details: EU €3 customs duty and €2 handling fee.

Returns and corrections

A submitted IOSS return cannot be amended. If a customer returns goods or you correct an error, you adjust it in a later return, within three years. The €2 handling fee is not refunded when goods come back.

Alternatives to IOSS

• Special arrangements: for consignments up to €150, the postal operator or courier collects import VAT from the customer on delivery and pays it to customs. Member states may apply the standard VAT rate, and the carrier usually adds a fee.
• Standard import: the customer, or you as importer, pays import VAT and duty at the border.
• Stock in the EU: you import in bulk, pay duty and import VAT once and sell from an EU warehouse. Your sales are then not imports, so neither IOSS nor the per-parcel charges apply, but you need a VAT registration where the stock is. See VAT and 3PL warehouses.

How hellotax helps

We do not offer IOSS. If the €150 limit, the new customs charges or unhappy customers at the door have you thinking about EU stock, we register your business for VAT where the goods are stored and file the returns and OSS. Book a free consultation.

FAQ

Does shipping count towards the IOSS €150 limit?

Only if it is included in the price and not shown separately. Shipping shown as a separate line on the invoice does not count.

Can I split a €200 order into two parcels to use IOSS?

No. Customs can treat parcels sent together to the same customer as one consignment, and artificial splitting is not allowed.

Can I use IOSS for some orders under €150 and not others?

No. Once you use IOSS, all eligible sales of €150 or less go through it.

Does IOSS apply to sales to businesses?

No. IOSS is only for sales to consumers. A business customer imports the goods and deducts the import VAT with the customs document.

Is a €150 order still duty-free?

No. Since 1 July 2026 it pays the €3 customs duty per item, and since 1 November 2026 the €2 handling fee per item.

Sources: European Commission, guidance on low value consignments · Irish Revenue, IOSS manual. Last checked: November 2026.