What Is the IOSS? Guide to the Import One-Stop Shop Scheme

If you’re looking to understand what the Import One-Stop Shop (IOSS) is and how it affects shipping goods into the EU, you’re in the right place.

In this guide, we explain how the IOSS scheme works, what an IOSS number is, who needs one, and the benefits for non-EU sellers. We also compare the main parcel delivery options for shipping goods from the UK to the EU, helping you choose the most suitable solution for your business.

What Is the Import One-Stop Shop (IOSS)?

The EU’s Import One-Stop Shop (IOSS) allows eCommerce sellers to register with a single EU tax authority and submit one monthly VAT return for eligible sales made to customers across the EU.

The scheme was introduced to simplify VAT declaration and payment for distance sales of imported goods valued at €150 or less. VAT is collected at the point of sale and paid through the IOSS, rather than being charged to the customer on delivery.

If a seller is not registered for IOSS, the EU customer must usually pay VAT — and often a customs clearance fee — before receiving their parcel. This can lead to delays, unexpected costs, and a poorer delivery experience.

What Is an IOSS Number?

An IOSS number is a unique VAT identification number issued when a seller registers for the IOSS scheme. It allows VAT to be declared and paid via a single monthly return, rather than registering separately in multiple EU countries.

Providing the IOSS number to your shipping partner ensures VAT is not charged again at the point of import, reducing paperwork and avoiding unnecessary delays.

How Do You Get an IOSS Number?

Non-EU sellers, including UK businesses, must usually register for IOSS through an EU-appointed intermediary. The intermediary registers on your behalf and is responsible for VAT reporting and payment.

Once registration is complete, you’ll receive your IOSS number and can begin using it immediately by sharing it with your carrier or logistics partner.

What If You Don’t Receive Your IOSS Number?

Assuming all information has been submitted correctly, IOSS registration typically takes five to seven weeks, depending on the processing times of the relevant tax authority.

If you haven’t received your IOSS number within this timeframe — and it’s not in your spam folder — contact your intermediary. They are responsible for following up with the tax authority on your behalf.

IOSS Registration and Compliance Requirements for Non-EU Sellers

If you’re a non-EU seller, including UK-based businesses, the following requirements apply:

• An EU intermediary must be appointed to register for IOSS

• The tax authority in the chosen EU member state will issue an IOSS VAT registration number

• VAT must be displayed and collected at checkout, based on the VAT rate of the customer’s EU country

• The IOSS number must be provided to Whistl Parcels to avoid VAT being charged again at import

• Monthly IOSS returns must be submitted covering all EU distance sales

• VAT payments are due by the end of the month following the reporting period

• Relevant sales data must be shared with the intermediary to complete VAT returns

Options for Transporting Goods to the EU from the UK

There are several ways to ship goods from the UK to EU customers. Each option has different implications for VAT, customer experience, and operational complexity.

Delivered Duties Unpaid (DDU)

Overview:

VAT is not collected at checkout. The EU customer is contacted by the carrier and must pay VAT and fees before delivery.

Benefits:

• Simple setup

• Lower upfront checkout costs

Challenges:

• Unexpected charges for customers

• Risk of refused deliveries and returns

• Poor customer experience

IOSS – Sender Self-Registration

Overview:

The seller registers for IOSS via an intermediary, collects VAT, and submits monthly returns.

Benefits:

• Improved customer experience

• Lower third-party fees if managed in-house

Challenges:

• Requires specialist VAT knowledge

• Time-consuming administration

• Risk of errors in returns

IOSS – Selling via a Marketplace

Overview:

Marketplaces may collect and pay VAT on your behalf for goods valued at €150 or less.

Benefits:

• Marketplace handles VAT

• Access to larger audiences

Challenges:

• Reduced brand visibility

• Marketplace fees (often 10%+)

• Does not apply to goods over €150

Assisted IOSS Solutions

Overview:

A trusted partner manages IOSS registration and VAT compliance on your behalf.

Benefits:

• VAT paid upfront for a smooth delivery experience

• Reduced compliance risk

• Less administrative burden

Challenges:

• Requires accurate data sharing

• Per-parcel models may increase costs

Delivered Duties Paid (DDP)

Overview:

VAT and duties are collected and paid by the seller before shipping, including for goods over €150.

Benefits:

• Seamless delivery for customers

• Useful for higher-value goods

Challenges:

• Higher upfront costs

• Complex refunds on returns

• Less cost-effective for high parcel volumes

Calculating the Value of the Goods

The intrinsic value of goods excludes transport and insurance costs. However, VAT is applied to the total value, including transport and insurance.

Goods with an intrinsic value of €150 or less are eligible for IOSS, even if VAT is calculated on additional costs.

Why Choose Whistl Parcels for Your IOSS Solutions?

Understanding EU VAT rules can feel complex — but with the right partner, it doesn’t have to be.

Whistl Parcels supports businesses with IOSS-compliant international shipping, offering:

• End-to-end IOSS support

• Clear VAT handling

• Tracking and visibility

• A dedicated account manager

• A single-contract setup to reduce admin time

We also support freight movements and imports into the UK, helping you streamline your entire cross-border operation.