EU VAT for non-EU sellers: IOSS, OSS & the €150 change (2026)
Updated 2026-07-08
A common and costly misconception is treating the EU's €10,000 micro-threshold as a general safe harbor. For non-EU direct sellers, separate DTC sales from marketplace sales, then split consignments at €150.
Do not use the €10,000 threshold as a safe harbor for non-EU DTC sales
The European Commission's OSS threshold is framed for sellers established in one EU Member State making intra-EU distance sales from that Member State. If you sell direct from outside the EU, do not rely on that threshold for DTC sales to EU consumers.
For a non-EU seller, the practical question is usually destination-country VAT from the first relevant B2C sale, with OSS/IOSS used as simplification schemes rather than as a no-registration threshold.
For imports of €150 or less, separate DTC and marketplace sales
For goods imported to EU consumers in consignments of €150 or less, IOSS can be used to charge VAT at checkout. If IOSS is not used, the parcel can still be taxed under the special arrangements or at the border.
The Commission's guidance says electronic interfaces can be deemed suppliers in certain circumstances. The marketplace may account for VAT on qualifying marketplace sales, while the seller remains responsible for the DTC orders.
The July 2026 customs duty change is separate from VAT
Since 2026-07-01 the EU has removed the €150 customs duty exemption; a temporary flat €3-per-item duty applies to relevant low-value import consignments until 2028-07-01, with exceptions. VAT/IOSS still follows the existing VAT framework.
For consignments above €150, you are outside IOSS and back into normal import VAT and customs-duty handling. That is often where DDP terms, customs broker setup, and importer-of-record questions start to matter more than OSS labels.
Situations requiring separate review
Member-state registration mechanics, VAT registrations for EU stock, customs-broker setup, and contractual allocation of the new customs duty require separate review.
Before changing pricing, IOSS setup or landed-cost commitments, document the marketplace and DTC sales split, EU inventory locations, Incoterms and importer arrangements for a VAT or customs professional to review.
Continue checking
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