An IOSS number identifies a seller registered for the EU Import One Stop Shop. The scheme lets eligible distance sellers collect destination-country VAT when a customer places an order, report that VAT through one monthly return and support VAT-paid treatment when the parcel enters the EU.

IOSS is designed for specific low-value B2C imports, not for every e-commerce transaction. Sellers need to confirm the goods, consignment value, dispatch point, customer and marketplace role before registration. This guide explains the number, the operational controls around it and when another VAT route is more suitable.

In a nutshell

  • VAT paid at checkout, not at the borderThe IOSS number (starting with IM) links an eligible sale to the seller's registration, so the customer avoids a second VAT charge on delivery.
  • Narrow scopeB2C goods dispatched from outside the EU, consignments up to EUR150 intrinsic value, no excise goods, no B2B sales.
  • Intermediary for non-EU sellersA seller established outside the EU generally needs an eligible intermediary. UK sellers must distinguish Great Britain from Northern Ireland.
  • Keep the number confidentialIt travels only through a secure data chain to the carrier or customs declarant, never on a website, invoice or label.
  • Monthly reportingOne return and payment by the end of the following month, with records kept for ten years.
  • New from 1 July 2026A fixed EUR3 customs duty per customs item applies to certain low-value consignments. It is separate from IOSS VAT.

What is an IOSS number and what does it change for EU imports?

An IOSS number is a scheme identification number used to connect an eligible sale with the seller’s IOSS registration. It tells the customs process that VAT was collected at checkout and will be declared through IOSS. The customer can then avoid a second VAT charge on delivery when the number and consignment data are transmitted correctly.

Registration does not create a public credential or a general VAT number. It creates a controlled reporting route for qualifying imports. The broader OSS and IOSS schemes cover different B2C situations and should be mapped before the seller changes checkout or logistics data.

IOSS number vs VAT number and EORI number

A VAT number identifies a business for national VAT purposes and may be needed for local stock, imports or domestic supplies. An EORI number identifies economic operators in customs interactions. An IOSS number is limited to the Import One Stop Shop and is included in the electronic customs declaration for an eligible consignment. One identifier does not replace the others.

The seller or deemed supplier receives an IOSS identification number beginning with IM. Where an intermediary represents the seller, the intermediary also has its own IN identification number. The IM number used for the transaction is the sensitive element that needs to reach the customs declarant.

VAT collection at checkout and simplified customs clearance

The seller applies the VAT rate of the EU country where transport ends, collects it from the customer and records the order in its IOSS data. The parcel operator or customs declarant receives the number through a secure data chain and includes it in the import declaration. When the number is valid and the remaining conditions are met, import VAT is not collected again at the border.

This can make the customer price clearer and reduce delivery friction, but it relies on accurate product values, destination, VAT rate and customs data. A valid number cannot correct an ineligible consignment or inaccurate declaration.

Keep the IOSS number confidential. Do not display it on a public website, customer invoice, parcel label or other document visible outside the controlled logistics chain.

CHECK YOUR ELIGIBILITY

Who can use the IOSS scheme?

IOSS can be used by sellers or qualifying electronic interfaces making distance sales of goods imported from outside the EU to consumers in the EU. The scheme is optional, but once used it needs to be applied consistently to the eligible supplies covered by the registration.

The operating model matters as much as the seller’s establishment. A UK brand dispatching directly from a third-country factory, a US seller using a postal operator and a marketplace acting as deemed supplier may each have a different registration and data path. Our overview of VAT for distance selling and e-commerce provides the wider VAT context.

UK and non-EU sellers supplying low-value goods to EU consumers

A seller established outside the EU can use IOSS if the goods are dispatched from outside the EU and the sale is to an EU consumer. It will generally need an eligible intermediary unless a direct-registration exception applies. UK businesses should separate Great Britain from Northern Ireland: HMRC operates an IOSS route under the Northern Ireland arrangements, while a GB seller does not become EU-established simply because it uses a UK provider. The available route depends on the seller, dispatch flow and the intermediary’s eligibility and should be confirmed before registration.

Value limit, B2C condition, excluded goods and marketplace rules

The scheme covers consignments with an intrinsic value not exceeding EUR150. It does not cover excise goods and does not apply to B2B sales. The value test is applied to the consignment, while separately stated transport and insurance costs are generally outside intrinsic value. Splitting an order artificially is not an acceptable way to fit the limit.

An online marketplace can become the deemed supplier for certain facilitated sales. Where that occurs, the marketplace may collect and report VAT under its own IOSS arrangement. The underlying seller should avoid reporting the same sale and retain evidence of the marketplace treatment.

Goods are dispatched from a location outside the EU at the time of sale.

The customer is an EU consumer or another person whose purchase is treated as B2C.

The consignment’s intrinsic value does not exceed EUR150.

The consignment does not contain goods subject to excise duties.

The seller or deemed-supplier marketplace is identified correctly.

The destination VAT rate and secure customs data flow can be maintained.

How do you register for an IOSS number?

Registration is made in one Member State of identification, either directly where the legal conditions allow or through an intermediary. The seller should decide the route after reviewing its establishment, dispatch countries and platform relationships.

Direct registration vs registration through an IOSS intermediary

An EU-established seller can register in the Member State where it is established. A seller established outside the EU generally appoints an eligible intermediary unless the scheme rules permit a direct route. For UK businesses, Great Britain and Northern Ireland need to be distinguished: an eligible Northern Ireland intermediary can use HMRC’s IOSS route, while a GB seller should not be treated as EU-established solely because it works with a UK intermediary. Easytax provides IOSS intermediary services for eligible sellers that need this structure.

The intermediary registers represented sellers separately. Each seller receives its own IM number, while the intermediary manages the monthly reporting relationship. This is distinct from a French or other national fiscal representative appointment.

Member State of identification, documents and activation date

The Member State follows the statutory registration route; it is not simply selected for convenience in every case. The application records the legal entity, websites, marketplaces, contact details, expected activity and any intermediary. The IOSS number is used from the registration’s effective date, so orders, checkout rules and carrier instructions should be tested before launch.

  • Legal name, registered address, trade-register number and establishment country.
  • Tax identifiers, contact details and bank or payment information requested by the authority.
  • Websites, marketplaces and sales channels used for EU orders.
  • Goods categories, dispatch countries, expected volumes and average consignment value.
  • Intermediary mandate and supporting corporate documents where applicable.
  • Named operational contacts for sales data, logistics, VAT review and approvals.

How should an IOSS number be used for each order?

Using IOSS is an order-to-return process. Checkout, payment, fulfilment, carrier data and accounting records need to describe the same transaction. A gap at any stage can cause a border charge, customer complaint or reconciliation difference.

Apply the destination-country VAT rate at checkout

The seller determines where the goods will be delivered and applies the relevant VAT rate for that Member State. Product tax classification needs to be accurate because reduced rates vary by country and product. The order record should show taxable value, VAT rate, VAT amount, currency, customer location, payment date and any refund or cancellation.

Shipping and insurance amounts need consistent treatment in both checkout and reporting. If an order is changed after payment, the sales and IOSS records should preserve the original transaction and the correction rather than overwrite the audit trail.

Transmit the number securely to carriers and customs

The IM number should pass electronically to the postal operator, express carrier or customs declarant responsible for the import declaration. Access should be limited, monitored and contractually controlled. The seller should test whether the carrier receives the number, maps it to the right parcel and submits the correct consignment value and destination.

From 1 July 2026, the EU’s temporary customs-duty measure applies a fixed EUR3 duty per customs item, based on its tariff classification, to certain low-value distance-sale consignments until the permanent customs reform takes effect. This does not mean EUR3 for every physical unit in a parcel. IOSS continues to deal with VAT for eligible consignments up to EUR150; the customs duty is a separate border charge and does not turn the IOSS number into a customs-duty account.

GET AN IOSS INTERMEDIARY

What reporting and payment obligations follow IOSS registration?

IOSS reporting is monthly. The return breaks down eligible sales by Member State of consumption and VAT rate, and the VAT due is paid to the Member State of identification. Even where an intermediary files, the seller needs complete and timely source data.

Monthly IOSS returns, VAT payments and deadlines

The return and payment are due by the end of the month following the reporting month. The filing is separate from domestic VAT returns and from Union OSS. A close calendar should leave time to validate sales, refunds, exchange rates and marketplace exclusions before approval. Late or inaccurate submissions can prompt enquiries and put continued use of the scheme at risk.

Transaction records, reconciliations and corrections

IOSS records need to be sufficiently detailed for tax-authority verification and are retained for ten years. Reconciliation should bridge checkout VAT, payment data, orders dispatched, customs transmissions, refunds and the return. Corrections are generally made through a subsequent IOSS return within the scheme’s correction rules, with a clear record of the original period and reason.

When should a seller use another VAT solution instead of IOSS?

IOSS is not suitable where the goods are already in the EU, the consignment exceeds the value limit, the goods are excluded or the customer is a business. In those cases, review the differences between OSS and IOSS and the potential need for local VAT registration.

Solution Typical use Reporting route Key boundary
IOSS
Eligible B2C distance sales of goods imported from outside the EU
Monthly return in one Member State of identification
Consignment intrinsic value up to EUR150; non-excise goods
Local VAT registration
Imports in the seller’s name, EU stock, domestic sales and country obligations
National VAT return and related reports
Requirements and deadlines vary by country
Union OSS
Eligible intra-EU B2C distance sales from EU stock and certain B2C services
Quarterly return through one Member State
Does not report domestic stock-country sales or B2B transactions
Normal import collection
Imports outside IOSS or without a valid IOSS data chain
Import VAT collected through customs or delivery arrangements
Customer charges and carrier fees can arise

How can Easytax help with IOSS registration and compliance?

Easytax turns the scheme requirements into an operating process shared by tax, finance, e-commerce and logistics teams. Our broader VAT compliance services can coordinate IOSS with local registrations and other reporting.

  • Confirm eligibility, marketplace treatment and intermediary requirements.
  • Manage registration and activation in the relevant Member State.
  • Act as IOSS intermediary for qualifying non-EU sellers.
  • Define sales-data templates, monthly controls and approval responsibilities.
  • Prepare returns, payment instructions, reconciliations and supported corrections.
  • Investigate recurring customs or customer-charge exceptions with the operational teams.

Contact Easytax with your establishment country, dispatch locations, goods, marketplaces, average consignment values and EU destinations. We can assess the right registration route and the data controls needed before IOSS goes live.

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