IOSS Changes 2026–2028: €3 Duty, €150 Threshold and Seller Updates

IOSS changes are becoming more important for online sellers shipping low-value goods from outside the EU to customers in Europe. While major EU customs reforms are expected in 2028, sellers need to prepare earlier because important changes already start in 2026.

From 1 July 2026, the EU will introduce a temporary €3 customs duty on certain low-value ecommerce imports with a value of up to €150. This is separate from import VAT and will affect many sellers using, or planning to use, the Import One-Stop Shop.

 

This guide explains the main IOSS changes for 2026–2028, what the €3 duty means, how the €150 threshold is changing, and what non-EU sellers should review now.

Important service note: hellotax does not currently act as an IOSS intermediary and does not offer IOSS registration as a standalone service. However, we can help you assess your EU VAT setup, understand whether IOSS may be relevant, and prepare your VAT processes so they can work more smoothly with an IOSS intermediary or future service.

Book a free consultation and get practical guidance on your EU VAT setup.

1. Introduction: Preparing for VAT IOSS Changes in 2028

The Import One-Stop Shop, or IOSS, has been used since July 2021 to simplify VAT reporting for eligible low-value goods imported into the EU. It allows sellers to charge VAT at checkout and report it through one monthly IOSS return, instead of leaving the customer to pay import VAT when the package arrives.

Until now, IOSS has mainly been discussed together with the €150 threshold. This is because IOSS can only be used for eligible consignments with an intrinsic value of €150 or less.

However, the EU is changing the customs and VAT environment for low-value imports. The most important update for sellers is that the €150 customs duty relief is being removed earlier than originally expected. As a transition measure, a temporary €3 customs duty will apply to certain low-value imports from 1 July 2026 until 1 July 2028.

This means sellers should not wait until 2028. If you ship low-value goods from outside the EU to EU consumers, you should review your checkout pricing, customs data, delivery terms, VAT process, and IOSS readiness now.

2. What are the IOSS changes from 2026 to 2028?

The IOSS changes should be understood in two stages: the temporary 2026 customs duty and the wider EU customs reform expected in 2028.

New €3 customs duty from 1 July 2026

From 1 July 2026, the EU applies a temporary €3 customs duty to certain low-value ecommerce imports from outside the EU. This applies to goods in consignments with a value of up to €150.

This is important because low-value imports have traditionally been free from customs duty, even though import VAT still applied. The new €3 duty changes the cost structure for many ecommerce sellers shipping low-value goods into the EU.

For sellers, this means the total landed cost of low-value EU sales may increase. You may need to review product pricing, shipping costs, checkout wording, customs data, delivery terms, marketplace settings and customer communication.

The €3 duty does not replace IOSS. IOSS remains a VAT reporting scheme, while the €3 amount is a customs duty measure.

Special Arrangement and non-IOSS sales

The Special Arrangement currently allows import VAT to be collected from the customer by postal operators, couriers or customs representatives in certain low-value import cases where IOSS is not used.

As the EU moves towards a more digital customs and VAT framework, sellers relying on this process should review whether it will remain practical for their business. Even where non-IOSS import procedures remain available, they can create extra delivery charges, customs delays, refused parcels and a weaker customer experience.

This does not mean every seller must automatically register for IOSS. However, sellers should compare IOSS with standard import procedures, marketplace VAT collection, OSS, and local VAT registration where relevant.

Increased pressure on customs intermediaries

Customs intermediaries, postal operators and couriers are likely to apply stricter checks as EU customs rules become more demanding. This may affect documentation, data quality, fees, onboarding requirements and parcel clearance.

For sellers, this means accurate product data, customs values, VAT treatment and delivery terms will become even more important.

What may happen to the €150 threshold?

The current IOSS system is still linked to eligible imported goods with an intrinsic value of €150 or less. Sellers should continue using the €150 threshold when deciding whether IOSS can apply.

However, the EU is moving towards removing the customs duty relief for low-value imports. The temporary €3 duty from 2026 is an early step before the wider customs reform expected in 2028.

For now, sellers should treat the €150 value as still important for IOSS eligibility, while also preparing for the new customs cost from 2026.

👉 New to IOSS? If you’re not yet familiar with how the Import One-Stop Shop works or whether it’s the right solution for your business, check out our comprehensive guide: IOSS for Non-EU Sellers. It covers everything from how to register to what kind of goods qualify—perfect for understanding the basics before diving into the 2028 updates.

3. Who is Affected by These IOSS Changes?

The IOSS changes mainly affect sellers that ship low-value goods from outside the EU to private customers in the EU.

This includes:

• Non-EU online sellers shipping directly to EU consumers
• UK sellers selling to EU customers after Brexit
• US sellers and other non-EU businesses selling into the EU
• Dropshippers using non-EU suppliers to ship goods directly to EU customers
• Sellers using postal operators, couriers, or customs representatives to handle import VAT where IOSS is not used
• Businesses using or considering IOSS for goods worth €150 or less
• Sellers using marketplaces where VAT collection rules may depend on the sales channel and import flow

The changes are especially important for sellers with high volumes of low-value parcels. Even a small fixed duty, such as the temporary €3 customs duty expected from 1 July 2026, can affect margins if the products are low-cost or shipped frequently.

IOSS remains optional, but sellers who do not use IOSS still need a clear import VAT and customs process. In some cases, VAT may be collected from the customer at the point of import by the carrier, courier, postal operator, or customs representative. This can create extra charges, delivery delays, refused parcels, and a poor customer experience.

To find out more about the changes in the law, read here.

4. Practical Tips to Ensure VAT Compliance after IOSS Changes

Sellers should start reviewing their EU import and VAT setup before the 2026 and 2028 changes create operational pressure.

1. Check whether your goods fall under the €150 value range

IOSS currently applies to eligible imported goods with an intrinsic value of €150 or less. The new temporary €3 customs duty from 1 July 2026 also focuses on low-value imports in this range. If you sell products close to or below this value, you should review whether IOSS, standard import procedures, or marketplace VAT rules apply.

2. Review your product margins

A fixed €3 duty can have a bigger impact on low-cost products than on higher-value items. Sellers should check whether product prices, shipping fees, delivery terms, or marketplace pricing need to be adjusted.

3. Check whether IOSS is suitable

IOSS can reduce import VAT surprises for customers because VAT is charged at checkout. However, it is not always the right solution. It does not apply to goods above €150, excise goods, B2B sales, or goods already stored in the EU.

4. Review marketplace responsibility

If you sell through a marketplace, the platform may be treated as the deemed supplier in some low-value import cases. This means the marketplace may be responsible for collecting VAT. Do not assume the same VAT treatment applies to your own website, Amazon, TikTok Shop, Shopify, or other sales channels.

5. Speak with logistics and customs partners

Your courier, postal operator, or customs representative should be able to explain how the €3 duty will be applied, how import VAT will be handled, and how IOSS numbers should be passed through customs data. Incorrect customs data can lead to delays, double VAT charges, or customer complaints.

6. Review your wider EU VAT setup

If you store goods in the EU, IOSS is usually not the right scheme for those sales. You may need local VAT registration, OSS, or another VAT setup depending on your stock locations and sales flows. Our EU VAT compliance checklist can help you review registrations, filing obligations, invoices, records, and VAT reporting tasks across Europe.

Common pitfalls to avoid

• Do not assume IOSS removes customs duties
• Do not ignore the new €3 duty just because it is not VAT
• Do not use IOSS for goods above €150
• Do not use IOSS for goods already stored in the EU
• Do not assume marketplace sales and own-website sales follow the same VAT treatment
• Do not promise customers “no extra charges” unless your checkout and logistics process truly supports this
• Do not claim hellotax provides IOSS registration if the service is not currently available

Important service note: hellotax does not currently act as an IOSS intermediary and does not offer IOSS registration as a standalone service. However, we can help you review your EU VAT setup, understand whether IOSS may be relevant, and identify whether OSS, local VAT registration, marketplace rules, or another solution may be more practical for your business.

Book a free consultation and get practical guidance before the new IOSS and customs changes affect your EU sales.

5. How hellotax Supports Your Business Through VAT IOSS Changes

The upcoming IOSS and customs changes can make VAT planning more complex for online sellers, especially if you ship low-value goods from outside the EU to customers in several EU countries.

Important service note: hellotax does not currently act as an IOSS intermediary and does not offer IOSS registration as a standalone service. This means we should not be listed as your IOSS intermediary or as the provider for your monthly IOSS returns.

However, hellotax can still help you understand your wider EU VAT position and prepare a practical compliance setup. This can be useful before you decide whether to work with an IOSS intermediary or use another VAT solution.

hellotax can help you:

• Review whether IOSS may be relevant for your sales model
• Understand when OSS or local VAT registration may be needed instead
• Check whether marketplace VAT rules may apply to your sales
• Review EU stock storage and fulfilment flows
• Identify whether standard import procedures, OSS, local VAT registration, or marketplace collection may be more suitable
• Prepare your VAT setup so it can work more smoothly with an IOSS intermediary or future service

For many sellers, the key question is not only “Do I need IOSS?” but also whether IOSS is the best option compared with OSS, local VAT registrations, marketplace VAT collection, or another import setup.

If you are unsure which route fits your business, it is worth getting professional guidance before the 2026 and 2028 changes affect your pricing, customs process, and customer experience. Contact us today to ensure your business is fully prepared and compliant with the upcoming IOSS changes in 2028.

6. Conclusion: prepare early for the IOSS changes

The IOSS changes for 2026–2028 are important for any seller shipping low-value goods from outside the EU to customers in Europe.

From 1 July 2026, the temporary €3 customs duty may affect the cost of low-value ecommerce imports. From 2028, wider EU customs reforms are expected to change how these imports are processed even further.

For online sellers, this means IOSS should not be reviewed in isolation. You should also check your customs process, delivery terms, marketplace setup, checkout pricing, VAT reporting, and customer communication.

Key takeaways:

• IOSS remains relevant for eligible imported goods worth €150 or less
• The new €3 duty is a customs duty measure, not a replacement for IOSS
• Sellers should review pricing, logistics, checkout wording, and customs data before the rules affect daily operations
• Non-EU sellers usually need an EU-established IOSS intermediary if they use IOSS
• Goods stored inside the EU usually need a different VAT setup, such as OSS or local VAT registration
• Marketplace sales and own-website sales may have different VAT treatments

hellotax does not currently provide IOSS intermediary or standalone IOSS registration services. However, we can help online sellers review their wider EU VAT setup and understand whether IOSS, OSS, local VAT registration, marketplace rules, or another solution may be more suitable.

The safest approach is to prepare early, avoid assumptions, and make sure your VAT setup matches how your goods are actually sold, shipped, and imported into the EU.

FAQs about IOSS changes

What are the main IOSS changes for 2026 and 2028?

The main IOSS-related change from 2026 is the temporary €3 customs duty on certain low-value ecommerce imports with a value of up to €150. From 2028, wider EU customs reforms are expected to change how low-value imports are processed. IOSS remains relevant for import VAT reporting on eligible goods, but sellers should also review customs duties, logistics, checkout pricing, and customer communication.

Does the new €3 customs duty replace IOSS?

No. The €3 customs duty does not replace IOSS. IOSS is used to report import VAT on eligible low-value goods sold to EU customers. The €3 amount is a customs duty measure, so sellers should treat it separately from VAT.

Does IOSS still apply to goods worth €150 or less?

Yes. IOSS is still linked to eligible imported goods with an intrinsic value of €150 or less. Sellers should continue to check the €150 threshold when deciding whether IOSS can apply. However, from 1 July 2026, low-value imports in this range may also be affected by the temporary €3 customs duty.

Do non-EU sellers need an IOSS intermediary?

In most cases, yes. Non-EU sellers usually need an EU-established IOSS intermediary to use IOSS. The intermediary helps with IOSS registration and monthly IOSS reporting. Sellers should also check whether marketplace VAT rules apply, as marketplaces may be responsible for VAT collection in some low-value import cases.

Do UK sellers need an IOSS intermediary after Brexit?

Usually, yes. Since Brexit, UK sellers are generally treated as non-EU sellers for IOSS purposes. A UK seller without an EU establishment will usually need an EU-based IOSS intermediary to use the scheme.

Can IOSS be used for goods above €150?

No. IOSS can only be used for eligible imported goods with an intrinsic value of €150 or less. Goods above this value follow normal import VAT and customs procedures and cannot be reported through IOSS.

Does IOSS apply if I store goods in the EU?

No. IOSS is designed for goods imported from outside the EU and sold to EU consumers. If your goods are already stored in an EU warehouse or fulfilment centre, you may need OSS, local VAT registration, or another VAT setup instead.

Does hellotax provide IOSS registration?

At the moment, hellotax does not provide IOSS intermediary or standalone IOSS registration services. However, hellotax can help sellers review their EU VAT setup and understand whether IOSS, OSS, local VAT registration, marketplace rules, or another solution may be more suitable.

Should sellers prepare before 2028?

Yes. Sellers should prepare before 2028 because the temporary €3 customs duty starts from 1 July 2026. Pricing, checkout wording, customs data, logistics processes, and VAT setup may need to be reviewed earlier.

✅ Ready to prepare for the IOSS changes?

The 2026–2028 IOSS and customs changes may affect how you price products, collect VAT, manage imports, and communicate delivery costs to EU customers.

hellotax does not currently provide IOSS intermediary or standalone IOSS registration services. However, we can help you review your EU VAT setup, understand whether IOSS may be relevant, and identify whether OSS, local VAT registration, marketplace rules, or another solution may be more practical for your business.

Book a free consultation and get practical guidance before the new IOSS and customs changes affect your EU sales.