IOSS for E-Commerce Shipments to EU
IOSS helps e-commerce sellers ship to the EU smoothly by collecting VAT upfront. This prevents surprise fees and customs delays for buyers.
You can either use your own IOSS number or JustShip’s IOSS account— just make sure you declare everything correctly to avoid penalties.
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.
To help e-commerce sellers comply with EU regulations, JustShip offers two options for IOSS shipments:
Use Your Own IOSS Number
Use JustShip’s IOSS Account
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 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.
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.
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.
You can either use your own IOSS number or JustShip’s IOSS account— just make sure you declare everything correctly to avoid penalties.
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.
To help e-commerce sellers comply with EU regulations, JustShip offers two options for IOSS shipments:
Use Your Own IOSS Number
Use JustShip’s IOSS Account
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.
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.
Updated on: 03/03/2025
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