SELLING TO THE EU SIMPLIFIED WITH IOSS
SIMPLFYING SALES TO EU CUSTOMERS
Selling your goods to customers in the EU may appear complicated – but we’re here to help you simplify the process and grow your business in new markets.
We’re ecommerce specialists and part of the world’s leading logistics company. So that means we’re good at dealing with international deliveries and customs clearance.
WHAT IS IOSS?
Import One Stop Shop (known as IOSS) is an online VAT registration scheme. It simplifies the payment of VAT on goods sold to customers in the EU and valued at €150 (£135) or less.
So what does this mean for you and your customers?
WHO CAN USE IOSS?
Any UK businesses selling goods in the EU for €150 (£135) or less can use IOSS (Import One Stop Shop). This could be whether you’re selling via your own website or a marketplace like eBay or Amazon.
Find out more about when IOSS can be used in the table below:
| Type of sale | Value of Goods | Can I use IOSS? |
| Goods sold to EU consumers on my own website | €150 (£135) or less | Yes |
| Goods sold to EU consumers on a marketplace | €150 (£135) or less | Yes |
| Goods sold to EU consumers on my own website | More than €150 (£135) | No |
| Goods sold to EU consumers on a marketplace | More than €150 (£135) | No |
| Goods sold to a business in the EU (B2B) | Any | No |
HOW DO I REGISTER FOR IOSS?
To register for IOSS, you may choose to appoint an intermediary, who will perform the following actions on your behalf:
- Submit monthly IOSS VAT returns that contain the total value of the goods sold, their VAT rate and the total VAT amount to be paid. This will be broken down by standard and reduced rate for each EU country where you have sent goods.
- Make a monthly payment of any local VAT due as declared in the IOSS VAT return.
If you sell through an online marketplace, they are likely to have registered for IOSS. You can ship your goods using their IOSS number – simply enter it in our shipping tool. Please contact the marketplace you're selling on to request their IOSS number as we can't provide it.
IOSS SIMPLIFIED WITH OUR PARTNER XENDO
If you’re using Shopify, you can install the Xendo IOSS for UK Sellers app. They offer a pay-as-you-go, simple-to-use IOSS solution with seamless integration to your Shopify store. Using the Xendo app means no admin for you, no contract and no minimum volumes.
We’ve partnered with Xendo to get preferential rates and the most seamless shipping and IOSS combination for our customers. With Xendo taking care of IOSS and DHL eCommerce UK looking after your deliveries, selling to customers in the EU will be a breeze!
IMPORT ONE STOP SHOP (IOSS) FAQS
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All VAT and customs charges are paid at the point of sale i.e. when a customer checks out on your online store. This means no taxes and duties need to be collected when your goods arrive in their destination country, which in turn means faster customs clearance and transit times.
Your IOSS intermediary will then submit a monthly VAT return and make a monthly payment on your behalf.
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No, IOSS is a voluntary scheme. If you choose not to use it, you can still send goods under the incoterms DDP (Delivered Duty Paid) and DAP (Delivered at Place). You’ll find more information about incoterms in our International Shipping FAQs.
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You won’t be able to use IOSS if your goods are valued at more than €150. But you can still ship to the EU using incoterms DDP (Delivered Duty Paid) and DAP (Delivered at Place). You’ll find more information about incoterms in our International Shipping FAQs.
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No – all fees and customs charges are taken at the point of sale. Your customers won’t get a bill to pay when their goods arrive in their country.
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No, IOSS is only for businesses selling to consumers. If you’re selling to businesses, you can still send goods under the incoterms DDP (Delivered Duty Paid) and DAP (Delivered at Place). You’ll find more information about incoterms in our International Shipping FAQs.
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The short answer: it varies! To estimate how much VAT you’ll have to pay, use this formula:
(value of goods + shipping costs + insurance + duty) x import VAT rate
The import VAT rate varies by country – you can see a list of current rates in our International Shipping FAQs.
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You can visit the UK government website or the EU’s IOSS information page.