IOSS for Non-EU Sellers: VAT, Intermediary and €150 Rule Guide
For the lastest information about IOSS, please check here.
Brenda Varela
Last Updated on 30 June 2026
Selling goods from outside the EU to customers in Europe can create VAT and customs challenges, especially when customers receive unexpected import charges at delivery. The Import One-Stop Shop, or IOSS, can help simplify this process for low-value goods.
IOSS for Non-EU sellers applies to distance sales of goods imported into the EU in consignments worth €150 or less, but from 1 July 2026 these low-value imports may also be affected by the EU’s new temporary €3 customs duty.
It allows VAT to be charged at checkout and reported through one monthly IOSS return, instead of being collected from the customer at import.
For non-EU sellers, the most important point is that an IOSS intermediary is usually required. This intermediary must be established in the EU and is responsible for helping with IOSS registration and monthly reporting.
Important service note: hellotax does not currently provide IOSS intermediary or IOSS registration services. However, we can still help you assess whether IOSS makes sense for your business and build an EU VAT setup that may be easier to connect to IOSS if you later appoint an intermediary.
The IOSS has been available since July 2021, when the EU removed the previous VAT exemption for low-value imports below €22. Since then, VAT generally applies to imported goods sold to EU consumers, including low-value consignments.
IOSS can make the process easier because VAT is charged when the customer pays online. This can reduce unexpected import VAT at delivery, improve price transparency, and support faster customs clearance.
For IOSS for Non-EU sellers, the scheme can be especially useful when selling directly to EU consumers from a non-EU country, such as the UK, the United States, China, or another third country. However, IOSS is not automatic, and it is not always the right solution for every seller.
You need to check:
Whether your goods qualify for IOSS
Whether each consignment is worth €150 or less
Whether excise goods are involved
Whether a marketplace is already responsible for VAT
Whether you need an IOSS intermediary
Whether another VAT setup, such as local VAT registration or OSS, is more suitable
2. Understanding IOSS for Non-EU Sellers
What is IOSS?
The Import One-Stop Shop is an EU VAT simplification scheme for distance sales of goods imported from outside the EU to private customers in the EU.
IOSS can be used for goods sold in consignments with an intrinsic value of €150 or less. It does not apply to excise goods, such as alcohol or tobacco products.
With IOSS, VAT is charged to the customer at checkout. The sale is then reported through a monthly IOSS return, and the VAT is paid through the Member State of identification.
For non-EU sellers, IOSS usually requires an EU-established intermediary. This is why many sellers search for “IOSS intermediary” or “IOSS intermediary UK” when planning EU sales after Brexit.
How IOSS works in practice:
A non-EU seller sells goods worth €150 or less to an EU customer
VAT is charged at checkout using the VAT rate of the customer’s EU country
The IOSS number is used for customs clearance
The goods can be imported without the customer paying VAT again at delivery
The sale is reported in a monthly IOSS return
Important: IOSS is optional. If you do not use IOSS, import VAT is usually collected at the border or by the carrier, postal operator, courier, or customs representative from the customer.
3. Benefits of IOSS for Non-EU sellers
IOSS can offer several benefits for non-EU ecommerce sellers shipping low-value goods to EU customers.
Simpler VAT reporting
Instead of dealing with import VAT separately in each EU country, IOSS allows eligible sales to be reported on a single monthly return.
Clearer pricing for customers
Because VAT is charged at checkout, customers are less likely to face surprise import VAT or handling fees when the package arrives.
Faster customs clearance
Using IOSS correctly can support smoother customs clearance because VAT has already been collected at the point of sale.
Better customer experience
Transparent VAT at checkout can reduce refused deliveries, complaints, and refund requests caused by unexpected import costs.
More competitive EU selling
IOSS can help non-EU sellers offer a buying experience that feels closer to buying from an EU-based seller.
However, IOSS is not a full VAT solution for every business. It only applies to eligible imported goods worth €150 or less. It does not cover goods stored in the EU, goods above €150, excise goods, or all marketplace transactions.
Important note (2026): hellotax does not currently provide IOSS intermediary or registration services. We advise on IOSS for Non-EU sellers and help you build an EU VAT setup that is ready to plug into IOSS with an intermediary or future service.
Struggling with VAT paperwork or registration hurdles?Reach out to hellotax for expert support and guidance.
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Streamlined Process Overview With the IOSS, you handle VAT at checkout and report via a single monthly return. For non-EU sellers, an EU-based intermediary is mandatory. They register your business under the IOSS and handle the monthly filings, ensuring smooth operations and compliance with EU requirements.
Avoiding Multiple VAT Registrations Before the IOSS, selling to customers in multiple EU countries meant registering for VAT in each of those countries. With the IOSS, you:
Register through an intermediary in one EU member state.
Collect VAT on goods sold to EU customers at checkout.
File a single monthly return detailing all EU sales covered by IOSS.
Ensuring Accurate Tax Collection
Upfront VAT: You collect the correct VAT amount on each sale, reducing the risk of undervaluation or missed VAT.
Monthly Returns: Submitting your returns via your intermediary helps maintain accurate records across the board.
For more information on official rules for IOSS for Non-EU sellers, please click here.
5. Navigating Post-Brexit Trade Complexities
Adjusting to Market Changes
After Brexit, UK sellers became non-EU sellers for many EU VAT purposes. This made IOSS more relevant for UK ecommerce businesses shipping low-value goods to EU consumers.
For UK sellers, IOSS can help by:
Allowing VAT to be charged at checkout
Reducing surprise import VAT for EU customers
Supporting smoother customs clearance
Simplifying VAT reporting for eligible consignments of €150 or less
However, UK sellers usually need an IOSS intermediary to use the scheme, unless a specific exception applies. This is why searches such as “IOSS intermediary UK” often come from UK ecommerce sellers trying to understand how to continue selling to EU customers after Brexit.
IOSS is not the only possible solution. If your business stores goods in the EU, sells through marketplaces, or ships goods worth more than €150, you may need a different VAT setup. Our guide to Brexit VAT compliance explains the wider VAT issues UK sellers should consider when selling to EU customers.
6. Utilizing IOSS Through Intermediaries
Most non-EU sellers need an IOSS intermediary to use the import scheme. The intermediary must be established in the EU and acts as the point of contact for IOSS registration and reporting.
An IOSS intermediary can help with:
IOSS registration in one EU Member State
Obtaining the IOSS VAT identification number
Submitting monthly IOSS returns
Paying VAT collected through IOSS
Supporting recordkeeping and compliance
For non-EU sellers, this is different from direct registration. Direct IOSS registration is generally available to EU-established sellers, while non-EU sellers normally need an intermediary.
This is especially relevant for UK businesses after Brexit. A UK seller without an EU establishment will usually need an IOSS intermediary UK sellers can use to access the scheme.
Important: an IOSS intermediary is not the same as a general tax advisor or fiscal representative. The role is specific to the IOSS import scheme and comes with particular responsibilities.
Need help deciding whether IOSS, OSS, local VAT registration, or marketplace VAT rules apply to your sales? hellotax can help you review your flows and prepare a cleaner EU VAT structure.
IOSS can only be used for specific types of sales. Before using the scheme, sellers should check whether the goods, customer, and shipping flow are eligible.
IOSS may apply where:
Goods are sold to private customers in the EU
Goods are dispatched or transported from outside the EU
The intrinsic value of the consignment is €150 or less
The goods are not subject to excise duties
VAT is charged at checkout
The correct IOSS number is used for customs clearance
The €150 threshold applies per consignment. If the consignment value is above €150, IOSS cannot be used, and normal import VAT and customs procedures apply.
IOSS also does not normally apply to goods that are already stored in the EU. If you store products in an EU warehouse or fulfillment center, you may need local VAT registrations or OSS instead.
For a wider overview of registration, filing, invoicing, and recordkeeping tasks, our EU VAT compliance checklist can help online sellers understand the steps needed for safer EU selling.
New for 2026: the temporary €3 customs duty on low-value imports
From 1 July 2026, the EU will introduce a temporary €3 customs duty on many low-value goods imported from outside the EU. This applies to goods with a value of up to €150 and is part of the EU’s wider customs reform for ecommerce imports.
This change is important for IOSS for Non-EU sellers because IOSS is also used for low-value imported goods up to €150. However, the €3 charge is not VAT. IOSS deals with VAT collection and reporting, while the new €3 amount is a customs duty.
In practice, sellers should review their pricing, checkout setup, delivery terms and customer communication. Even if VAT is collected through IOSS at checkout, the new customs duty may still affect the total landed cost of selling low-value goods into the EU.
The rule is currently planned as a temporary measure until 1 July 2028, when wider EU customs reforms are expected to apply. Non-EU sellers should monitor how the charge is implemented by carriers, customs brokers and marketplaces, as the practical handling may affect checkout pricing and delivery experience.
8. Steps to Implement IOSS
If IOSS is suitable for your business, the implementation process usually involves both VAT and operational changes.
Step 1: Check whether your sales qualify
Confirm that the goods are imported from outside the EU, sold to private customers, not subject to excise duties, and shipped in consignments worth €150 or less.
Step 2: Check whether a marketplace is responsible
If you sell through a marketplace, the marketplace may be treated as the deemed supplier for some low-value imported goods. In that case, the marketplace may be responsible for collecting and reporting VAT.
Step 3: Appoint an IOSS intermediary
Most non-EU sellers need an EU-established IOSS intermediary. The intermediary helps with registration and monthly reporting.
Step 4: Set up VAT collection at checkout
Your store or marketplace setup must charge the correct VAT rate based on the customer’s EU country.
Step 5: Prepare customs data
The IOSS number must be passed correctly through the customs process. If it is missing or incorrect, the customer may be charged VAT again at import.
Step 6: File monthly IOSS returns
Eligible IOSS sales must be reported monthly through the intermediary. You should keep detailed transaction records to support the return.
Step 7: Review non-IOSS sales separately
Sales above €150, sales from EU stock, B2B sales, and excise goods may need a different VAT or customs treatment.
hellotax does not currently provide IOSS intermediary or IOSS registration services. However, we can help you review your EU VAT flows, identify whether IOSS is likely to be useful, and prepare your wider VAT setup around local registrations, OSS, or other compliance requirements.
Ready to plan for using the IOSS but not sure where to start?hellotax can help you design a VAT setup that works today (with local registrations, OSS, or other schemes) and is ready to connect to IOSS if you implement it later.
9. Conclusion: The Future of IOSS and Global Trade
IOSS remains an important VAT simplification for non-EU sellers shipping low-value goods to customers in the EU. It can improve checkout transparency, reduce import VAT surprises, and simplify reporting for eligible consignments worth €150 or less.
However, IOSS is not a complete solution for every seller. It does not apply to goods above €150, excise goods, goods already stored in the EU, or every marketplace transaction.
Key takeaways:
IOSS can be used for eligible imported goods worth €150 or less
VAT is charged at checkout and reported through a monthly IOSS return
Most non-EU sellers need an EU-established IOSS intermediary
UK sellers often need to review IOSS after Brexit
IOSS should be checked together with OSS, local VAT registration, marketplace rules, and customs processes
FAQs about IOSS for Non-EU sellers
What is IOSS for Non-EU sellers?
IOSS for Non-EU sellers is an EU VAT simplification scheme for distance sales of goods imported from outside the EU to private customers in the EU. It can be used for eligible consignments with an intrinsic value of €150 or less. VAT is charged at checkout and reported through one monthly IOSS return.
Do non-EU sellers need an IOSS intermediary?
In most cases, yes. Non-EU sellers usually need an EU-established IOSS intermediary to use the import scheme. The intermediary helps with IOSS registration, monthly IOSS returns, VAT payments, and compliance obligations.
Do UK sellers need an IOSS intermediary?
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 in consignments with an intrinsic value of €150 or less. Goods above this value follow normal import VAT and customs procedures.
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 local VAT registration or OSS instead.
Is IOSS mandatory for non-EU sellers?
No. IOSS is optional. However, if you do not use IOSS, import VAT is usually collected at import or from the customer by the carrier, courier, postal operator, or customs representative. This can create a less transparent delivery experience.
What is the new €3 customs duty for low-value imports?
From 1 July 2026, the EU will apply a temporary €3 customs duty to many low-value goods imported from outside the EU with a value of up to €150. This is separate from VAT. IOSS still concerns VAT collection and reporting at checkout, while the €3 charge is a customs duty linked to the EU’s wider customs reform. Non-EU sellers should review how this may affect pricing, delivery terms, and customer communication.
Take the Next Step with hellotax
If you are a non-EU seller targeting the European market, IOSS can be useful, but it is only one part of your VAT setup. The right solution depends on where your goods are shipped from, whether you store products in the EU, which marketplaces you use, and whether your consignments stay below the €150 limit.
hellotax does not currently provide IOSS intermediary or IOSS registration services. However, we can still help you understand whether IOSS for Non-EU sellers is relevant for your business and what VAT setup may be needed before or alongside IOSS.
Our team can help you:
Review your EU VAT flows
Identify whether OSS, local VAT registration, or marketplace VAT rules apply
Prepare your VAT setup so it can work more smoothly if you appoint an IOSS intermediary later
Avoid unnecessary registrations where a simpler solution may be available
If you are not sure whether IOSS, OSS, or local VAT registration is the right route, it is worth speaking to us before making a decision.
Nicht-EU-Onlinehändler stehen vor besonderen Herausforderungen beim EU-weit einheitlichen Umgang mit Mehrwertsteuer (MwSt.). Die Import-One-Stop-Shop (IOSS)…
