Last updated: 16 October 2026
What is the Import One-Stop Shop?
The Import One-Stop Shop (IOSS) is an EU VAT scheme for businesses selling low-value goods to consumers in the EU from outside the EU, including from Great Britain. It applies to consignments with an intrinsic value of €150 or less. Instead of the customer paying import VAT and a handling fee when the parcel arrives, the seller charges EU VAT at checkout and pays it through one monthly IOSS return.
Why it matters for UK sellers
Since Brexit, sales of goods from Great Britain to EU customers are exports. For UK VAT, exports are zero-rated. But the goods face import VAT in the EU country of the customer. Without IOSS, the customer pays VAT and a courier fee on delivery, which often leads to refused parcels and unhappy customers.
How IOSS works
- You register for IOSS in one EU member state. Businesses outside the EU usually need to appoint an EU-based intermediary, who is jointly liable for the VAT.
2. You charge the VAT rate of the customer’s country at the point of sale.
3. You give your IOSS number to the courier so the parcel clears customs without VAT being collected again.
4. You file a monthly IOSS return and pay the VAT collected.
IOSS or not?
| Option | Who pays EU VAT | Customer experience |
| IOSS | Seller, at checkout | Smooth delivery, no surprise charges |
| No IOSS, customer pays | Customer, on delivery | Extra fees and possible refusals |
| Sell through an online marketplace | The marketplace usually handles VAT | Simple for the seller |
| Ship in bulk to an EU warehouse | Import VAT on the bulk shipment, then local VAT registration | Suited to larger sellers |
Example
A UK candle maker sells a €60 parcel to a customer in France. With IOSS, she charges French VAT of 20% (€12) at checkout and pays it through her IOSS return. The parcel arrives without extra charges. In her UK VAT return, the sale is a zero-rated export, and she keeps evidence of export.
Changes coming
Since 1 July 2026, the EU has removed the €150 customs duty exemption for low-value parcels sent to consumers and charges a temporary flat duty of €3 for each type of item in a parcel, according to the European Commission. The flat duty is due to apply until 1 July 2028, when wider EU customs reforms take over. IOSS still applies for VAT. The UK has announced it will scrap customs duty relief on its own imports of £135 or less, with the change due by October 2028. Check the current rules before you price products for EU customers.
Northern Ireland
Businesses in Northern Ireland moving goods to EU consumers are treated as within the EU single market for goods and use the EU One-Stop Shop rules instead.
UK imports of £135 or less
For goods sent to UK consumers from abroad, the seller or online marketplace charges UK VAT at the point of sale on consignments of £135 or less. This is similar to IOSS but run by HMRC.
Frequently asked questions
Is IOSS compulsory?
No, but without it your customers pay import VAT and fees on delivery.
Does IOSS cover excise goods?
No. Alcohol and tobacco are excluded.
Do I still need a UK VAT registration?
Only if your UK taxable turnover is over £90,000 or you register voluntarily.
What about consignments over €150?
Normal import rules apply, with customs duty and import VAT paid on import.
Related: VAT on sales of goods to the EU, how to record EU sales and the Trader Support Service.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT on cross-border e-commerce. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
