EU Imports with IOSS – A 2025 Overview

As of July 1, 2021, the EU introduced the Import One-Stop Shop (IOSS) VAT scheme, a voluntary system designed to simplify business-to-consumer (B2C) transactions for goods imported from third countries. This guide will provide you with a comprehensive understanding of the IOSS scheme and its benefits for your business in 2025.

Previous VAT rules for Cross-Border Sellers

Prior (pre-2021) to the IOSS implementation, cross-border sellers faced complex VAT rules, including varying VAT thresholds in each EU member state. This required businesses to register for VAT in multiple countries, leading to increased administrative burdens. For example, if you have been selling goods in multiple countries such as Spain, France, and Germany, then you have to register for VAT in each of those countries that exceed the specified thresholds.

What is the OSS VAT scheme?

To better understand IOSS, it’s essential to grasp the One-Stop Shop (OSS) VAT scheme. OSS simplifies VAT declarations for B2C sales within the EU, allowing businesses to register in one member state and declare VAT for all EU sales. Main facts to know about OSS:

• The OSS scheme allows businesses selling goods to consumers (B2C) within the EU to register for VAT in a single EU member state. 
• This eliminates the need for multiple VAT registrations in each country where sales are made.
• Businesses can declare and pay VAT for all eligible EU sales through a single OSS return.
• Read more from our Guide to OSS VAT scheme

What is IOSS? Simplifying EU Import VAT

The IOSS scheme aims to simplify the declaration of the low-value consignments (up to 150 €)  imported from third countries to sell to the end consumers inside the EU. It benefits both EU and third-country businesses by streamlining VAT obligations on cross-border sales of imported goods.

Key Benefits of IOSS for Sellers and Buyers:

• Sellers:
  • Simplified VAT collection and declaration.
  • Reduced administrative overheads.
  • Faster customs clearance.
• Buyers:
  • Transparent pricing with VAT included at the point of purchase.
  • No surprise fees upon delivery.
  • Faster delivery times.

It’s also important to understand that this scheme can be registered and is beneficial for both:

• EU businesses who import from third countries to the EU 
• Third country businesses who import from third countries to the EU

IOSS VAT: Key Facts for EU Imports in 2025

Main facts you should know about VAT as an IOSS-seller when importing goods to the EU from third countries:

• The exemption for the import of consignments with a value of up to 22 € will be lost. As a result, all goods imported into the EU are subject to VAT.
• Can be used for goods that value does not exceed 150 € (excluding transport and insurance, unless these are included in the price) and which are not taxable with an excise tax.
• Scheme adds the payable VAT already at the point of sale (for example include the VAT in the e-shop prices). In that case, the customers don’t have any additional tax obligations when receiving the goods.
• Can be used by both third country businesses and EU businesses who import goods from third countries to the EU.
• If you want to use either OSS or IOSS scheme, your company has to be registered as a VAT payer in the country of origin. For example, if your company is established in Germany and you want to register as a IOSS seller, you have to have a VAT number in Germany before you can do that.
• If a third country business doesn’t have a seat or place of business in the EU, they have to find an intermediary who will act on their behalf to fulfil the duties related to the IOSS scheme.

Need assistance with IOSS compliance? Contact our VAT experts.

IOSS Scheme Limitations: When It Doesn’t Apply to EU Imports?

IOSS can only be used if:

• The imported goods are not worth more than 150 € 
• You are an online seller or electronic interfaces (online marketplace, platform, etc)
• You are selling directly to end consumers
• The imported goods are shipped from outside the EU
• The imported goods are not subject to any excise duties (products such as alcohol, tobacco, energy, or anything that requires indirect taxes on the sale or use)

Why Register for IOSS? Benefits for EU Online Businesses

IOSS provides simplified VAT solutions, saving time and costs for both sellers and buyers. It enhances transparency and customer satisfaction, giving IOSS-registered businesses a competitive edge.

To further explain how this system offers a more transparent and reasonable solution, let’s look into an example:

When shipping a 10 € product from a third country to the EU, for example to Belgium, your product is subject to a customs fee of 15 €. With a 21% VAT rate in Belgium, another 5.25 € will be charged. Therefore, your customer will be charged over 30 € for this small purchase. On the other hand, if you are an IOSS-seller, different regulations will apply and then your customer will only pay the VAT surcharge, making the total price 12.10 €.

How to do the IOSS registration?

Businesses can register for IOSS through the portal of any EU member state. Third-country businesses must appoint an EU-established intermediary.

Therefore, if an intermediary is anyway needed, many businesses decide to use professional help in doing the registration. With 1Office, the registration service includes preparing the application and submitting it to the Tax and Customs Board. Read more about the registration service here.

Simplify your EU imports. Get started with IOSS VAT registration today!

What obligations come with the IOSS registration?

• Provide IOSS VAT identification number for customs clearance.
• Submit monthly electronic VAT declarations.
• Make monthly VAT payments.
• Maintain records of IOSS sales for 10 years.

In conclusion: EU Imports with 1Office

If you are a seller who can benefit from using either OSS or IOSS schemes, there are some details you need to think about before the registration. In case you need help in sorting out your needs, registering for these schemes, or submitting the declarations, 1Office’s professionals are more than happy to help you.