IOSS Registration for Cross-Border Sellers: How It Works, Thresholds and Steps

Any seller shipping goods ≤€150 from outside the EU to EU consumers who wants to avoid customs VAT delays for the buyer. EU-established sellers register directly with their national tax authority. Non-EU sellers must appoint an EU-based intermediary. Marketplaces (Amazon, eBay) that are deemed importers handle IOSS themselves for marketplace-facilitated sales.

The €150 limit is based on the intrinsic value of the goods (excluding transport and insurance costs). If a consignment exceeds €150, IOSS does not apply and standard import VAT procedures at customs apply instead. Each consignment is assessed individually — you cannot split a single order into multiple shipments to stay under the threshold.

OSS covers B2C distance sales of goods already inside the EU (e.g., shipping from a German warehouse to a French consumer). IOSS covers goods imported from outside the EU into the EU. The €10,000 annual threshold for using OSS applies to intra-EU distance sales; IOSS has no annual threshold — it applies per-consignment up to €150. You may need both if you sell from non-EU warehouses and also from EU warehouses.

IOSS VAT returns are due by the end of the month following the reporting period. Monthly filers submit by the last day of the following month. The return lists total VAT-collected imports by member state of consumption and the VAT amount at each country's rate. Records must be kept for 10 years. If no sales occurred in a period, a nil return is still required.

Without IOSS, the buyer (importer of record) must pay import VAT at customs before delivery, plus carrier handling fees (typically €10-25 per shipment). This creates a poor customer experience and increases return rates. From July 2021, the EU abolished the €22 low-value consignment VAT exemption, making IOSS the standard mechanism for low-value imports.