E-commerce IOSS / OSS — selling up to €150 without headaches

IOSS (Import One Stop Shop) and OSS (One Stop Shop) are EU VAT schemes that have drastically simplified cross-border e-commerce since 1 July 2021. For shipments from third countries up to €150, the consumer pays only VAT at the webshop; no import duties and no surprises at the doorstep. For B2C sales between EU member states, you register once in one country and file one centralized VAT return for all EU turnover. Non-EU sellers do need an EU intermediary. Below how it works, when to choose which scheme, and the most common mistakes.

What are IOSS and OSS?

On 1 July 2021 the EU VAT e-commerce package came into effect, based on Directive (EU) 2017/2455 and Implementing Regulation (EU) 282/2011 (amended). The package consists of three main schemes:

1. IOSS (Import One Stop Shop)

For the import of consumer shipments from third countries with a value up to and including €150. The seller collects the VAT from the consumer at sale and remits it monthly via one EU member state. On import, no extra VAT is due, no import duties, and no import administration at the consumer’s door.

2. OSS (Union One Stop Shop)

For B2C sales between EU member states (a Dutch webshop delivering to German, Belgian, French consumers). You use the VAT rate of the destination country, and remit via the OSS portal of your own member state (in NL via the Tax Administration).

3. Non-Union OSS

For non-EU companies providing services to EU consumers. Almost only relevant for digital services (software, content, subscriptions).

Before 1 July 2021 there was an exemption for shipments under €22 — that has been abolished. Even small shipments are now VAT-liable.

Understanding the €150 threshold

The €150 limit is crucial and often misunderstood:

• Up to and including €150 (intrinsic goods value, excluding shipping costs and VAT): IOSS-applicable, no import duties due, VAT remitted via IOSS.
• Above €150: IOSS no longer possible; regular import declaration with VAT and import duties due. The consumer receives a handling invoice from the carrier (PostNL, DHL, UPS).

The threshold applies per shipment, not per article. A package with three items of €60 (total €180) falls outside IOSS. Splitting into multiple shipments is allowed, but does result in higher shipping costs.

How does IOSS work in practice?

Step 1: Registration

• EU sellers: register in one EU member state of choice (member state of identification).
• Non-EU sellers (US, UK, China, etc.): mandatory designation of an EU intermediary that applies for IOSS registration in their name and remits VAT. The intermediary is jointly liable.

On registration you receive an IM number (12 characters, starting with IM followed by country code + unique number). This number appears on all customs declarations.

Step 2: Sale in webshop

The webshop:

• Shows prices including VAT of destination country of the consumer (NL: 21%, DE: 19%, FR: 20%, etc.).
• Collects VAT directly from the consumer (no surprises).
• Includes the IOSS number in the customs data of the shipment.

Step 3: Shipping and import

The carrier or postal service:

• States the IOSS number on the CN23/CN22 or electronic H7 declaration.
• Customs sees from the IOSS number that VAT is already remitted via IOSS.
• No extra VAT levy, no handling invoice to consumer.

Step 4: Monthly IOSS return

The seller or intermediary:

• Files a monthly IOSS return via the portal of the identification member state.
• Reports total sales per member state, with VAT per rate.
• Pays VAT in one go; the identification member state distributes to the other member states.

Filing deadline: end of the month following the quarter at the latest (in NL via the Tax Administration portal).

How does OSS (Union) work?

For B2C within the EU there used to be a threshold system per country (€35,000 in NL, €100,000 in DE, etc.). Since 1 July 2021 that has been abolished and applies:

• Threshold of €10,000 for total cross-border B2C sales plus digital services — below that threshold you may continue to use your own local VAT rate.
• Above €10,000: VAT of the destination country mandatory.

With OSS you centralize the remittance: one registration in NL, one quarterly return, one payment — for all EU member states. The Tax Administration distributes the VAT internally to Berlin, Paris, Madrid, etc.

For whom is IOSS interesting?

• Webshops in third countries (US, UK, China) serving consumers in the EU.
• EU sellers with dropshipping from Asian warehouses.
• Marketplaces (Amazon, AliExpress, Etsy, eBay) which as deemed supplier since 2021 are themselves IOSS-liable for sellers via their platform.

What IOSS delivers:

• Faster transit: shipments with IOSS number are handled via a fast-track customs flow at PostNL, DHL and other carriers.
• No surprises for the consumer: no VAT invoice afterwards, no collection charges.
• Higher conversion: studies show that e-commerce conversion is 15–30% higher without hidden import costs.

Common mistakes

1. IOSS number not passed to carrier

The webshop is registered, but the IOSS number doesn’t reach the carrier’s customs declaration. Result: double VAT levy or delay. Test every shipping channel end-to-end.

2. Trying goods above €150 under IOSS

IOSS strictly applies up to €150. For shipments above that you need to file a regular import declaration with VAT and possibly import duties. Split if needed or use a DDP arrangement (Delivered Duty Paid).

3. No EU intermediary as non-EU seller

A British or American webshop can only arrange IOSS via an intermediary in the EU (unless they are themselves established in the EU). Some sellers try to register directly — that’s refused.

4. Not applying for OSS when exceeding €10,000

Webshops continue to invoice NL VAT to German and French customers above the threshold. Result: VAT recovery in destination member states, plus interest and penalty. The OSS application is free and takes a few weeks at the Tax Administration.

5. Processing mixed deliveries incorrectly

B2B deliveries fall outside OSS — those you arrange via a regular intra-Community delivery with VIES validation of the VAT number. Many webshops mix B2B and B2C without distinction in their return.

6. Using IOSS for excise goods

IOSS is not applicable to excise goods (alcohol, perfume > 70%, tobacco). Those follow a separate scheme with EMCS and standard import declaration.

Practical figures

What’s changing around IOSS in the coming years?

The EU is working on IOSS 2.0 as part of the VAT in the Digital Age (ViDA) package. Proposals include:

• Increase of the €150 threshold (not yet decided)
• Mandatory e-invoicing for B2B intra-EU
• Single VAT registration expansion
• Stricter fraud controls on IOSS numbers

Keep an eye on Tax Administration updates for your 2027–2028 planning.

Get started

IOSS and OSS are not complex if you set them up correctly the first time — but practice shows that many webshops do half the job: registration yes, but IOSS number doesn’t reach the carrier feed, or OSS is forgotten as soon as €10,000 is exceeded.

DouaneDoc helps e-commerce businesses with IOSS registration (including intermediary for non-EU parties), OSS registration, integration with carriers and periodic VAT returns. See our e-commerce sector page or request a quote. Also working with larger B2B shipments? Then our article on the export declaration step by step is a logical next step.

Direct contact: 088 088 2407 or sales@aircargo.nl.