IOSS for E-Commerce Shipments to EU
To help e-commerce sellers comply with EU regulations, JustShip offers three options:
Use Your Own IOSS Number
Use JustShip’s IOSS Account
DDU (Delivered Duty Unpaid / Post-paid VAT)
The Import One-Stop Shop (IOSS) is a system introduced by the European Union to simplify VAT collection for low-value goods (under €150) shipped to EU customers.
Rather than managing separate tax obligations for each EU country, IOSS enables businesses to report and pay VAT for all EU sales through a single monthly filing. Under IOSS, VAT is charged to the buyer at checkout, ensuring that the total cost of the order—including VAT—is settled upfront. This prevents unexpected charges upon delivery and reduces customs delays.
IOSS ensures that VAT is collected upfront at checkout, preventing delays and unexpected costs upon delivery. Without IOSS, shipments may be subject to additional handling fees and customs delays, which can negatively impact the buyer’s experience.
Sellers who provide their own valid IOSS number are responsible for ensuring:
The IOSS number is active and correctly declared for EU shipments.
VAT is collected from buyers and managed through their own processes.
The shipment value remains under the €150 CIF threshold (value of goods + shipping + insurance) to qualify for IOSS.
JustShip will validate the format of the IOSS number but is not responsible for customs issues or VAT compliance.
Sellers are encouraged to review the EU’s IOSS guidelines to ensure full compliance.
Sellers who do not provide an IOSS number will automatically use JustShip’s IOSS account for VAT declarations. When using our IOSS account:
VAT must be prepaid to JustShip at the time of shipment booking.
Sellers must provide accurate shipment details, including declared values, item descriptions, and HS codes, to comply with EU regulations.
Compliance & Misuse Penalties
To maintain compliance and protect all parties, improper use of JustShip’s IOSS account may result in:
Suspension of access to JustShip’s IOSS account.
Administrative fees or penalties for false declarations or exceeding the €150 threshold.
Permanent restrictions for repeated violations.
Additional Considerations
Shipments valued over €150 are not eligible for IOSS and may be rejected or processed through alternative customs procedures.
Sellers are encouraged to review the EU’s IOSS guidelines to ensure full compliance.
We also support DDU shipments for sellers who prefer not to pre-pay VAT.
In this case:
Buyers pay VAT (and any customs fees) upon delivery
No IOSS number is required
There are no extra charges from JustShip, but customs fees may apply
⚠️ Important Considerations:
Customs clearance may take longer
Some local postal couriers don’t notify buyers properly about payment
Parcels can get stuck unless the buyer proactively checks with their local post office
Sellers are responsible for informing buyers if using DDU
We recommend DDU only for sellers with experienced buyers who understand how post-paid VAT works in their country.
Use Your Own IOSS Number
Use JustShip’s IOSS Account
DDU (Delivered Duty Unpaid / Post-paid VAT)
What is IOSS, and Why Does It Matter?
The Import One-Stop Shop (IOSS) is a system introduced by the European Union to simplify VAT collection for low-value goods (under €150) shipped to EU customers.
Rather than managing separate tax obligations for each EU country, IOSS enables businesses to report and pay VAT for all EU sales through a single monthly filing. Under IOSS, VAT is charged to the buyer at checkout, ensuring that the total cost of the order—including VAT—is settled upfront. This prevents unexpected charges upon delivery and reduces customs delays.
IOSS ensures that VAT is collected upfront at checkout, preventing delays and unexpected costs upon delivery. Without IOSS, shipments may be subject to additional handling fees and customs delays, which can negatively impact the buyer’s experience.
1. Using Your Own IOSS Number
Sellers who provide their own valid IOSS number are responsible for ensuring:
The IOSS number is active and correctly declared for EU shipments.
VAT is collected from buyers and managed through their own processes.
The shipment value remains under the €150 CIF threshold (value of goods + shipping + insurance) to qualify for IOSS.
JustShip will validate the format of the IOSS number but is not responsible for customs issues or VAT compliance.
Sellers are encouraged to review the EU’s IOSS guidelines to ensure full compliance.
2. Using JustShip’s IOSS Account
Sellers who do not provide an IOSS number will automatically use JustShip’s IOSS account for VAT declarations. When using our IOSS account:
VAT must be prepaid to JustShip at the time of shipment booking.
Sellers must provide accurate shipment details, including declared values, item descriptions, and HS codes, to comply with EU regulations.
Compliance & Misuse Penalties
To maintain compliance and protect all parties, improper use of JustShip’s IOSS account may result in:
Suspension of access to JustShip’s IOSS account.
Administrative fees or penalties for false declarations or exceeding the €150 threshold.
Permanent restrictions for repeated violations.
Additional Considerations
Shipments valued over €150 are not eligible for IOSS and may be rejected or processed through alternative customs procedures.
Sellers are encouraged to review the EU’s IOSS guidelines to ensure full compliance.
3. DDU (Delivered Duty Unpaid / Post-Paid VAT) – Optional
We also support DDU shipments for sellers who prefer not to pre-pay VAT.
In this case:
Buyers pay VAT (and any customs fees) upon delivery
No IOSS number is required
There are no extra charges from JustShip, but customs fees may apply
⚠️ Important Considerations:
Customs clearance may take longer
Some local postal couriers don’t notify buyers properly about payment
Parcels can get stuck unless the buyer proactively checks with their local post office
Sellers are responsible for informing buyers if using DDU
We recommend DDU only for sellers with experienced buyers who understand how post-paid VAT works in their country.
Updated on: 21/03/2025
Thank you!