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IOSS stands for Import One-Stop Shop, the European Union scheme that lets a seller charge VAT to the consumer at the time of purchase on distance sales of imported goods worth up to EUR 150 per consignment. For customs to recognise it, the IOSS number must be transmitted electronically with the shipment data.
If your Brazilian business sells to consumers in the European Union, you have probably come across the terms VAT, IVA and IOSS. The most common question comes after the sale: the customer paid the tax at checkout and still received a charge on delivery. The cause is almost always the way the number was entered on the shipment.
It is a scheme created by the European Union to simplify the declaration and payment of VAT on distance sales of goods imported from countries or territories outside the European Union.
In practice, when the seller or marketplace uses IOSS, VAT is charged to the consumer at the time of purchase, at the rate that applies in the EU country where the goods will be delivered.
The aim is to make the process simpler and more predictable for the consumer, reducing the chance of an unexpected VAT charge on delivery.
IOSS covers distance sales of goods that:
An IOSS registration can be used for eligible sales to the different EU Member States. Above EUR 150, the shipment follows standard import procedures, with VAT collected at entry. Our guide to shipping from Brazil to Europe shows how to prepare that kind of shipment.
The process can be summed up in four steps:
When this information is transmitted correctly, customs authorities can see that the VAT on that sale has already been handled through IOSS.
Sellers and certain electronic interfaces, such as marketplaces, can use the scheme for eligible transactions.
Businesses not established in the European Union may need to appoint an intermediary established in the EU to meet the IOSS obligations. That is the case when you sell from Brazil: under the European Commission's rules, a business from outside the bloc appoints an intermediary, who receives a separate IOSS number for each seller it represents (Source: European Commission, VAT e-Commerce, October 2026).
The intermediary is responsible for meeting the obligations of the scheme, such as filing the returns and paying the VAT due.
For the VAT paid at checkout to be recognised during customs clearance, a valid IOSS number must appear correctly in the electronic data sent for the customs declaration.
The number must be entered in the appropriate electronic field while the shipment is being prepared, so that it reaches the destination country before clearance. Entering the IOSS number only on the commercial invoice may not be enough. The table separates what works from what usually fails:
Where the IOSS number appears | What happens at customs |
In the appropriate electronic field of the shipment | The number reaches the destination country before clearance and the scheme can be recognised |
Only in the text of the commercial invoice | May not be enough |
Only in the goods description | May not be enough |
Only on a paper document | May not be enough |
If the IOSS number:
the scheme may not be recognised and VAT may be charged again at import.
That is why the information must be filled in correctly before the shipment is completed. The number does not replace a well-prepared invoice: description, quantity and value still count, as our commercial invoice guide explains.
The seller or marketplace responsible for the sale must provide a valid IOSS number and make sure it is used correctly in the transaction.
The validity of the number is checked electronically by the customs authorities of the European Union.
Because it is confidential tax information, the IOSS number must not be disclosed publicly or used on unauthorised shipments.
To reduce the risk of unexpected charges at destination, check:
No. IOSS relates to VAT.
Using it does not automatically mean exemption from customs duties, operational fees or other charges that may apply to the shipment.
Since 1 July 2026, the European Union has also applied a temporary measure involving a EUR 3 charge for certain categories of items in low-value consignments, under the rules set by the EU. This charge is independent of VAT and may therefore apply even when IOSS is used correctly.
According to the European Commission, the amount is counted per item, not per parcel, and the measure stays in force until 1 July 2028 (Source: European Commission, Taxation and Customs Union, June 2026).
The full context is in our article on the EU customs reform, and the import duty guide explains the difference between customs duty and consumption tax.
Paying VAT at the time of purchase does not, on its own, guarantee that a charge made during import can be reversed. Before disputing it, check that the number was transmitted electronically, was valid on the import date and available before clearance, that the shipment met the scheme's criteria and that there is proof of the VAT charged at purchase.
No. The IOSS number is confidential tax information tied to the sales of its holder and must not be used on unauthorised shipments.
The scheme covers distance sales to consumers located in an EU Member State. Business-to-business sales follow the standard import and VAT rules of the destination country.
The European Commission publishes detailed information on how IOSS works, registration, obligations and the rules for e-commerce on its VAT e-Commerce (One Stop Shop) portal and on the Taxation and Customs Union website, both listed in the sources of this article.
Knowing the rules and preparing the shipment information correctly helps reduce unexpected charges and gives sellers and buyers a more predictable experience.
If Europe is already on your sales map, open a DHL Express business account to ship as a company and track every parcel through to delivery.
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