IOSS vs OSS: which EU VAT scheme applies to your sales?
EU VAT e-commerce package · rates & thresholds verified 2026-06-11
Run the determination ↓
Three single-registration outcomes, one decision. Imported consignments of intrinsic value €150 or less route to IOSS — collect VAT at checkout, clear customs VAT-exempt, file one monthly return. Goods already inside the EU sold B2C across borders route to Union OSS (or non-Union OSS for non-EU sellers of TBE services) — one quarterly return covering every destination. A seller established in a single Member State only leaves home-country VAT once pan-EU B2C sales pass €10,000 a year; above €150 or outside these schemes you fall back to standard local registration.
- IOSSIOSS — imported goods ≤ €150. Collect destination VAT at the point of sale; the import clears VAT-exempt when the IOSS number is given at customs; remit through a single monthly IOSS return. A non-EU seller can only use IOSS through an EU-established intermediary.
- OSSUnion OSS — goods already in the EU sold B2C across borders, and cross-border TBE services. One quarterly OSS return covers all 27 destinations. Open to non-EU sellers too, who register in the Member State the goods ship from.
- STDStandard / local — consignments over €150, or supplies that fit no scheme, need standard import VAT and local registration in the destination Member State. The €10,000 relief is reserved for single-Member-State sellers.
Official sources: European Commission — VAT rates (TEDB) · Directive 2006/112/EC (EUR-Lex consolidated) · EU One Stop Shop portal — verified 2026-06-11
Imported consignments of EUR 150 or less qualify for IOSS, goods dispatched from inside the EU fall under Union OSS, and a seller established in a single Member State only switches to destination-country VAT once pan-EU B2C sales exceed EUR 10,000 per year. Destination standard VAT rates currently range from 17% in Luxembourg to 27% in Hungary. All 27 rates and both thresholds used by this checker were verified on 2026-06-11 against the European Commission's Taxes in Europe Database.
| IOSS ceiling — imported consignments | EUR 150 intrinsic value per consignment | Art. 369l, Directive 2006/112/EC |
|---|---|---|
| Union OSS micro-business threshold | EUR 10,000 pan-EU B2C sales per calendar year | Art. 59c, Directive 2006/112/EC |
| Destination standard VAT rates (EU-27) | 17% (Luxembourg) to 27% (Hungary) | Commission Taxes in Europe Database |
IOSS €150 · OSS €10,000 · verified 2026-06-11
How the determination is built
The selector applies the EU VAT e-commerce package (Directive 2006/112/EC as amended by Directive 2017/2455, in force since 1 July 2021). It evaluates seller establishment, supply type, consignment value, destination Member State, and annual pan-EU cross-border sales against the EUR 150 IOSS ceiling and the EUR 10,000 Union OSS optional threshold. Two rules the tree applies that sellers often miss: Union OSS is open to non-EU established sellers for intra-EU distance sales of goods (registration in the Member State of dispatch, Art. 369a(2)), and the EUR 10,000 threshold is reserved for sellers established in a single Member State (Art. 59c). Standard VAT rates come from the Commission's Taxes in Europe Database and member-state portals; the result always shows the standard rate of the destination — reduced rates for specific goods categories are flagged but not resolved.
Two worked examples
A US seller ships an EUR 87 consignment to a consumer in Germany using IOSS (through an EU-established intermediary, Art. 369m(1)(c)). Germany's standard VAT rate is 19%, so EUR 16.53 is charged at checkout on the EUR 87 basket, and the import itself clears customs VAT-exempt once the IOSS number is communicated (Art. 143(1)(ca) Directive 2006/112/EC).
A Spanish seller dispatching goods from Spain with EUR 8,500 of annual pan-EU cross-border B2C sales stays below the EUR 10,000 threshold of Art. 59c: it may keep charging Spanish VAT at 21%, and Union OSS remains optional until the threshold is crossed. Standard rates in both examples per the Commission Taxes in Europe Database, verified 2026-06-11.
Last updated: 2026-06-21Data verified: 2026-06-11 against the European Commission Taxes in Europe Database
IOSS vs OSS: what each scheme actually covers
The EU VAT e-commerce package (Directive 2006/112/EC as amended by Directive (EU) 2017/2455, in force since 1 July 2021) replaced country-by-country distance-selling thresholds with three simplification schemes. Picking the wrong one means either over-registering (paying an intermediary you do not need) or under-registering (owing VAT in a Member State where you never filed).
IOSS — Import One-Stop Shop
IOSS covers distance sales of goods imported from outside the EU in consignments with an intrinsic value of EUR 150 or less (Art. 369l–369x). The seller charges the destination country's VAT at checkout, the consignment clears customs without import VAT being collected at the border, and the seller remits everything through a single monthly IOSS return. A seller not established in the EU can generally only use IOSS through an intermediary established in the EU, who becomes jointly liable for the VAT due. Above EUR 150, IOSS is unavailable: standard import procedures apply and the buyer or the seller (depending on the delivery terms) pays import VAT at the border.
Union OSS
The Union scheme (Art. 369a–369k) covers intra-EU distance sales of goods — goods already located inside the EU when sold cross-border to consumers — and certain services supplied by EU-established sellers. Instead of registering in every destination Member State, the seller files one quarterly OSS return in its Member State of identification and applies the destination country's VAT rate to each sale.
Crucially, for intra-EU distance sales of goods the Union scheme is also open to sellers established outside the EU (European Commission OSS portal; Art. 369a(2), third subparagraph). A non-EU seller holding stock in an EU fulfilment warehouse registers in the Member State from which the goods are dispatched and declares all its intra-EU distance sales through that single OSS registration — no intermediary required for the Union scheme. Two caveats: holding stock in a Member State can still create local obligations there that OSS does not cover, and where sales run through a marketplace, Art. 14a(2) can make the platform the deemed supplier for VAT.
Non-Union OSS
The non-Union scheme (Art. 358a–369) is for sellers established outside the EU supplying services — most commonly telecommunications, broadcasting, and electronically supplied (TBE) services — to EU consumers. It mirrors Union OSS filing but is open only to non-EU suppliers and only for services, never for goods.
The two thresholds that decide the call
- EUR 150 per consignment — the IOSS ceiling. Intrinsic value at customs, excluding transport and insurance when separately stated. A basket above this line can produce a dual finding: IOSS for the low-value part of your flows, standard import treatment for the rest.
- EUR 10,000 per calendar year — the pan-EU micro-business threshold (Art. 59c). An EU seller established in a single Member State, dispatching goods from that same Member State, whose total cross-border B2C sales of goods and TBE services stay below this amount may simply keep charging its home country's VAT; Union OSS remains optional. Cross the line and destination-country VAT applies from that sale onward. The relief is not available to sellers established in more than one Member State, nor to non-EU sellers — for them, destination VAT applies from the first sale.
Registration and returns at a glance
| Scheme | Who registers | Return frequency |
|---|---|---|
| IOSS | EU sellers directly; non-EU sellers via EU intermediary | Monthly |
| Union OSS | Any seller — EU or non-EU established — for intra-EU distance sales of goods (non-EU sellers register in the Member State of dispatch); EU-established sellers also for B2C services | Quarterly |
| Non-Union OSS | Non-EU sellers of services | Quarterly |
Registration happens once, in a single Member State of identification, through its national tax portal. The determination above cites the directive article and the specific input that triggered each finding, so you can hand the result to your tax adviser as a starting point rather than a conclusion.
From 1 July 2026: customs duty on low-value imports
Separately from VAT, the EU removes the EUR 150 customs-duty exemption for imported consignments on 1 July 2026 and applies a transitional flat customs charge of EUR 3 per item, in force until 1 July 2028 when the EU Customs Data Hub takes over (adopted by the Council on 11 February 2026; implementing rules published in the EU Official Journal on 8 June 2026). This raises the landed cost of low-value imports but does not change the EUR 150 IOSS ceiling for VAT or any determination on this page — IOSS remains the VAT route for consignments at or under EUR 150.
Looking ahead: ViDA
The VAT in the Digital Age (ViDA) package moves toward a single VAT registration for cross-border sellers, with key extensions taking effect from 2028 onward. Determinations for supplies dated after the crossover are flagged as provisional in the result panel.
Frequently asked questions
Do I need my own IOSS number if I sell through a marketplace?
Usually not for marketplace orders. When an electronic interface facilitates distance sales of imported goods up to EUR 150, Art. 14a(2) of Directive 2006/112/EC makes the platform the deemed supplier: it charges, collects, and remits the VAT under its own IOSS registration, and your parcels travel under the platform's IOSS number. Sales through your own checkout are still yours to handle, so confirm liability channel by channel before registering.
Can a non-EU seller use Union OSS for stock held in an EU warehouse?
Yes. Union OSS is open to sellers not established in the EU for intra-EU distance sales of goods (Art. 369a(2), third subparagraph). The seller registers in the Member State from which the goods are dispatched and declares every intra-EU distance sale in one quarterly return — no intermediary is required, unlike IOSS. Holding stock can still create local obligations in the warehouse country that OSS does not cover, such as intra-Community movements of own goods.
Is IOSS mandatory for consignments of EUR 150 or less?
No, IOSS is optional. Without it, import VAT is collected at the border instead — either under the special arrangements of Art. 369y–369zb, where the postal operator or courier collects VAT from the buyer before handing over the parcel (usually adding a handling fee), or through a standard customs declaration. Most sellers still choose IOSS because the buyer sees the final price at checkout, and unexpected fees on delivery are a leading cause of refused parcels.
Which VAT rate applies under IOSS or OSS?
The destination Member State's rate — by default its standard rate, which in 2026 ranges from 17% in Luxembourg to 27% in Hungary. Two recent changes this tool already reflects: Estonia moved to 24% on 1 July 2025, and Romania to 21% on 1 August 2025 (Law 141/2025). Member states also operate reduced rates for specific goods categories, so check your product's rate in the Commission's Taxes in Europe Database. The 27 standard rates used here were last verified on 2026-06-11.
Who can use the EUR 10,000 micro-business threshold?
Only a seller established in a single Member State that dispatches the goods from that same Member State (Art. 59c(1)(a)–(b)). The ceiling counts combined pan-EU cross-border B2C sales of goods and TBE services per calendar year. Below it the seller may keep charging home-country VAT; voluntarily opting into Union OSS instead binds for two calendar years (Art. 59c(3)). Sellers established in several Member States or outside the EU get no relief — destination VAT applies from their first sale.
Does the 1 July 2026 customs reform change the IOSS ceiling?
No — it changes customs duty, not VAT. From 1 July 2026 the EU removes the EUR 150 customs-duty exemption for imported consignments and applies a transitional flat customs charge of EUR 3 per item, in force until 1 July 2028 (adopted by the Council on 11 February 2026; implementing rules published in the EU Official Journal on 8 June 2026). The EUR 150 IOSS ceiling for VAT is untouched, so the determination this tool produces is unaffected; low-value imports simply carry an additional customs cost.
Disclaimer
Results are orientative. They do not constitute tax, legal, or financial advice. Consult a qualified professional for decisions based on this calculator.
Related cross-border cost tools
Sorting out the VAT scheme is one piece of the landed-cost picture. These ShipCost Lab tools answer the next questions:
- Duty & Import VAT Calculator — estimate import duty, VAT, and total landed cost for EU, US, and UK shipments.
- Importer of Record Checker — who is legally the importer of record by destination, Incoterm, and sales channel.
- Cross-Border Returns Cost & Duty Drawback Calculator — duty drawback eligibility and per-return break-even across US, EU, and UK regimes.
- All ShipCost Lab tools — the full set of cross-border shipping cost calculators and checkers.