What is IOSS? Explaining Import One Stop Shop

It allows your e-commerce business to collect, declare, and pay VAT on all your EU sales in one go, instead of dealing with individual tax rules for each EU country you sell to.

The goods you’re selling must originate from a country outside the European Union, regardless of where your company is located and the total value of the parcel contents must be under €150.

1. Get an EORI Number:  An EORI (Economic Operators Registration & Identification) number is a unique identifier assigned to businesses and individuals who are involved in the import or export of goods into or out of the European Union.  It is a legal requirement which helps authorities track your businesses trade activity in each EU country you ship to. Read our guide on EORI Numbers for e-commerce businesses.
2. Register for IOSS:
   - If you are a marketplace seller: You can likely use the marketplaces IOSS number.
   - If you are an EU based business: You can register directly with your in-country tax authority.
   - If you are outside of the EU: You'll need to appoint an intermediary established in the EU to register on your behalf.
   Skip to ‘’how to register for IOSS’’ for more information.
3. Display VAT at the checkout:  IOSS allows VAT to be collected from your customers at the checkout. If you display the VAT amount to be paid by the customer during the checkout process, this level of transparency builds trust and avoids confusion.
4. Collect the VAT on your sales: Charge the correct VAT rate based on the customer's location. This will vary depending on the EU country they're in. See our FAQ on what the European Import VAT costs are by country?
5. File Monthly Returns: The tax owed on your shipments is usually paid at the end of the month following the sale (up to 60 days later).  Submit a single IOSS VAT return each month and pay the collected VAT to the tax authority where you registered.

e-Commerce platform IOSS integrations: Many popular e-commerce platforms such as shopify, Woo, Magento etc offer additional plug-ins or apps like Xendo which handle any IOSS payments for your e-commerce store so your business can simply ‘pay-as-you-go’.

At DHL eCommerce we provide fast, affordable, and reliable delivery & returns options across Europe with our Parcel Connect services. Your e-commerce or marketplace store can integrate seamlessly with Parcel Connect via our eConnect plug-in which allows you to enter the IOSS number (as well as collecting all the information you need for your ‘’paperwork’’ – read more here) at the point of your delivery or returns booking.

IOSS applies to the EU member states of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

If you’re new to international shipping or looking to expand your e-commerce store across-borders we’ve got some handy country reports on what online shoppers are browsing and buying online. Check them out;

EU import VAT varies by country and ranges from 17% in Luxembourg to 27% in Hungary. VAT is an in-country tax payment which is imposed by countries to generate revenue or to protect local industries against foreign competition, or both. All applicable duties and taxes on the goods being shipped from one country to another are usually paid before the goods are released from customs in the destination country. In our 5 step guide to overseas and cross-border shipping we answer how much import VAT is charged for each of the European countries which you can find here.

IOSS is a valuable tool for small businesses looking to expand into the European market. By simplifying VAT compliance, IOSS helps you save time and money while creating a better shopping experience for your customers. So why wait? Get started with DHL eCommerce today and watch your EU sales soar!