IOSS number

An IOSS number is used when you send low-value goods from countries outside the EU to private customers in the EU, so VAT is handled correctly.

What is an IOSS number?

An IOSS number is used when you send low-value products from countries outside the EU to private customers in the EU.

It makes it possible to collect VAT directly at the point of sale and report it together in one monthly IOSS return. This means that the VAT handling becomes both easier and more transparent for both the sender and the recipient.

What does IOSS mean?

IOSS stands for Import One-Stop Shop and refers to an EU scheme that simplifies VAT on distance sales of low-value goods to private consumers.

The scheme ensures that VAT is paid before the goods cross the EU border, so the customer does not have to pay VAT or fees on delivery. For businesses outside the EU, this means that all VAT reporting is gathered in one monthly IOSS return, regardless of where in the EU the goods are sent.

Which goods can use IOSS?

IOSS applies to low-value goods with a value of no more than EUR 150 per shipment. The scheme only applies when you send to private customers, B2C. If you send goods with a higher value or to businesses, you must instead use the normal VAT and customs procedures.

Why should you use an IOSS number?

With an IOSS number, you can ensure that:

• The customer avoids extra VAT payments and handling fees on delivery
• Your business only needs to register for VAT in one place in the EU, regardless of where you send the goods
• Customs and VAT handling becomes simpler and more predictable

If you do not use IOSS, the recipient will typically have to pay VAT and fees on delivery, and your business will have more complex VAT reporting, because the rules vary between EU countries.

How do you get an IOSS number?

To get an IOSS number, your business must first be registered under the scheme.
The procedure depends on whether you are established in the EU or outside the EU:

Businesses established in the EU:

You must register your business with the tax authorities in one EU country, which becomes your point of contact for IOSS returns. When the registration is approved, you receive a unique 12-digit IOSS number, which must be used on all relevant shipments to private customers in the EU.

Businesses outside the EU:

You must register through an EU intermediary, which acts as the point of contact for VAT returns. The intermediary registers the business under IOSS and receives the IOSS number, which can then be used on all shipments to consumers in the EU.

Once you have received your IOSS number, it must always be attached to all shipments to private customers in the EU.

Setting up an IOSS number in Shipmondo

You can attach your IOSS number to your shipments on your Shipmondo account.

Shipmondo then automatically inserts your IOSS number on the customs documents, so you ensure correct VAT handling and easy reporting in the monthly IOSS return.

We have created a guide on how to set up your IOSS number right here.