What is the IOSS and who needs it?

The Import One-Stop Shop (IOSS) lets sellers collect EU import VAT at checkout on B2C distance sales of goods with an intrinsic value of €150 or less, then report it through a single EU registration. It speeds up customs clearance and avoids surprise VAT bills for the buyer.

How is import VAT calculated under IOSS in 2026?

Import VAT equals the destination country's standard VAT rate multiplied by the intrinsic value of the goods (the price excluding transport, insurance and taxes). Some goods qualify for reduced rates, but the standard rate is the default.

Does IOSS cover customs duty?

No. IOSS handles VAT only. From 1 July 2026 a separate flat €3 customs duty applies per tariff sub-heading on consignments of €150 or less — IOSS does not remove it.

What is the new €3 customs duty from 1 July 2026?

It's an interim flat duty of €3 charged on each distinct tariff sub-heading in a low-value consignment (≤ €150), running from 1 July 2026 until around 2028. It replaces, on an interim basis, the previous duty-free treatment of low-value goods.

Is the €3 charged per parcel or per item?

Per tariff sub-heading. A parcel with 1 silk blouse and 2 wool blouses has two distinct sub-headings, so it's charged €6 — not €3 per parcel and not €9 for three items.

Can I use IOSS for orders over €150?

No. IOSS is capped at an intrinsic value of €150. Above that, the standard import procedure applies: full import VAT plus the actual tariff duty for each commodity.

Are alcohol and tobacco covered by IOSS?

No. Excise goods such as alcohol and tobacco are excluded from IOSS regardless of value. They ship under standard procedures with VAT and excise duty handled at the border.

Do non-EU sellers need an IOSS intermediary?

Yes. A seller not established in the EU must appoint an EU-established intermediary to use IOSS. The intermediary is jointly and severally liable for the VAT due.

When will the €150 threshold be removed?

In 2028 the €150 customs-duty exemption is abolished entirely under the EU Customs Data Hub, and normal tariffs will apply to all imports regardless of value.

Which VAT rate applies — origin or destination country?

The destination country's rate. Import VAT under IOSS is always charged at the rate of the EU country where the goods are delivered to the consumer.

IOSS VAT Calculator (EU import VAT 2026)

Estimate the landed cost of a low-value B2C parcel into the EU under the Import One-Stop Shop (IOSS). Enter the destination country and what's in the parcel to get import VAT at the destination rate, the new flat €3 customs duty per tariff sub-heading (effective 1 July 2026), and the total.

Consignment

Your order

Destination EU countryImport VAT is charged at the destination country's rate, not the origin's.

Products in the parcel

Each distinct HS tariff sub-heading adds €3 of interim duty. Two rows of the same category count once.

€

Goods value (intrinsic) €110.00

Import VAT (19% · Germany)€20.90

Interim customs duty€3 × 2 sub-headings€6.00

Total landed cost€136.90

Standard rate shown — some goods qualify for reduced VAT rates.

How it's calculated

Import VAT is the destination country's standard VAT rate applied to the intrinsic value of the goods. The interim customs duty is a flat €3 for each distinct tariff sub-heading in the parcel — not per parcel and not per item. IOSS reports the VAT; this duty is separate and is not removed by IOSS.

import_vat = standard_vat_rate(destination) × intrinsic_value
duty       = €3 × distinct_HS_sub_headings
total      = intrinsic_value + import_vat + duty

Example: a parcel with 1 silk blouse and 2 wool blouses contains two distinct sub-headings → €6 of interim duty.

Frequently asked questions

What is the IOSS and who needs it?: The Import One-Stop Shop (IOSS) lets sellers collect EU import VAT at checkout on B2C distance sales of goods with an intrinsic value of €150 or less, then report it through a single EU registration. It speeds up customs clearance and avoids surprise VAT bills for the buyer.
How is import VAT calculated under IOSS in 2026?: Import VAT equals the destination country's standard VAT rate multiplied by the intrinsic value of the goods (the price excluding transport, insurance and taxes). Some goods qualify for reduced rates, but the standard rate is the default.
Does IOSS cover customs duty?: No. IOSS handles VAT only. From 1 July 2026 a separate flat €3 customs duty applies per tariff sub-heading on consignments of €150 or less — IOSS does not remove it.
What is the new €3 customs duty from 1 July 2026?: It's an interim flat duty of €3 charged on each distinct tariff sub-heading in a low-value consignment (≤ €150), running from 1 July 2026 until around 2028. It replaces, on an interim basis, the previous duty-free treatment of low-value goods.
Is the €3 charged per parcel or per item?: Per tariff sub-heading. A parcel with 1 silk blouse and 2 wool blouses has two distinct sub-headings, so it's charged €6 — not €3 per parcel and not €9 for three items.
Can I use IOSS for orders over €150?: No. IOSS is capped at an intrinsic value of €150. Above that, the standard import procedure applies: full import VAT plus the actual tariff duty for each commodity.
Are alcohol and tobacco covered by IOSS?: No. Excise goods such as alcohol and tobacco are excluded from IOSS regardless of value. They ship under standard procedures with VAT and excise duty handled at the border.
Do non-EU sellers need an IOSS intermediary?: Yes. A seller not established in the EU must appoint an EU-established intermediary to use IOSS. The intermediary is jointly and severally liable for the VAT due.
When will the €150 threshold be removed?: In 2028 the €150 customs-duty exemption is abolished entirely under the EU Customs Data Hub, and normal tariffs will apply to all imports regardless of value.
Which VAT rate applies — origin or destination country?: The destination country's rate. Import VAT under IOSS is always charged at the rate of the EU country where the goods are delivered to the consumer.

Disclaimer

This tool is for informational estimation only — not tax or legal advice. VAT rates and the 2026 reform timeline change; verify against official sources (EU TEDB) or a tax advisor before relying on these figures.

Standard VAT rates are seeded and being verified against the official EU TEDB database.

Selling into the EU?

Find prep-centers and 3PL warehouses that handle EU import, IOSS labelling and last-mile fulfillment.

Browse prep-centers & warehouses