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Import and Export Manual for low value shipments

Process description

Broadly speaking, IOSS works as follows:

  • The seller registers for VAT purposes in a single Member State, applies and collects VAT on distance sales of goods dispatched or transported to consumers in the EU , and declares and settles said VAT to the Member State of identification, which will then distribute it among the Member States of destination of the goods.
  • In this case, the goods are exempt from VAT when imported into the EU. The customs authorities of the Member State of import prepare a monthly list of the value of imports for each IOSS VAT identification number and share it with the tax administration of the Member State of identification.

The following image shows a summary of the IOSS process11:

Image with drawings and arrows that simply illustrates the IOSS process, from registration in IOSS to communication of data to the administration

11 Please note that this is a simplified assumption and that there are several alternatives. ( e.g. As far as payment is concerned, it can also be made at the time of delivery).