IOSS Compliance Guide: Import One Stop Shop Invoices for EU Goods Under €150

What is the IOSS (Import One Stop Shop) Scheme?

The IOSS (Import One Stop Shop) scheme is an EU VAT collection system introduced on July 1, 2021, specifically for distance sales of imported goods valued at €150 or less from non-EU countries to EU consumers.

Before IOSS, every package shipped from outside the EU triggered a customs VAT process: the package would be held at customs, the customer would receive a VAT bill (plus handling fees of €10-€25), and delivery would be delayed by 3-10 days. This created a terrible customer experience and led to package abandonment rates of 30-40%.

IOSS fundamentally changes this workflow:

Without IOSS (Old Process)

Customer orders product from non-EU seller
Product ships to EU
Package held at customs for 3-7 days
Customer receives VAT bill + €15-€25 handling fee
Customer pays fees (or refuses package)
Package finally delivered (or returned)

Result: Delays, unexpected fees, high abandonment rates

With IOSS (New Process)

Customer orders product from IOSS-registered seller
VAT collected at checkout (included in price)
Product ships to EU with IOSS number on customs form
Package clears customs immediately (no VAT processing needed)
Package delivered directly to customer (no fees)

Result: Fast delivery, no surprises, higher customer satisfaction

How IOSS works for sellers:

Register for IOSS in any EU member state (get IOSS VAT number starting with "IM")
Collect VAT at point of sale based on customer's destination country
Add your IOSS number to invoices and customs declarations (CN22/CN23 forms)
Submit a single monthly IOSS return reporting all EU sales
The EU distributes collected VAT to the appropriate member states

IOSS is only for physical goods under €150 shipped from outside the EU. Digital services use the OSS scheme instead.

Who Needs IOSS Registration?

IOSS is designed for non-EU sellers shipping low-value physical goods to EU consumers. Registration is technically optional, but practically essential for competitive e-commerce.

Mandatory IOSS Registration

You must register for IOSS if:

You're a marketplace facilitator (like Amazon, eBay) based in the EU facilitating sales from non-EU sellers to EU customers
Your platform's terms require IOSS registration (Amazon, Shopify Markets, some dropshipping platforms)

Strongly Recommended IOSS Registration

You should register for IOSS if:

You're based outside the EU (US, UK, China, Australia, etc.) and ship to EU consumers
You sell products typically valued under €150 per order (most e-commerce products)
You want to compete effectively with EU-based sellers
You want to avoid 30-40% package abandonment rates from customs fees
You want to offer transparent "duties paid" or "VAT included" pricing

Customer Expectations Have Changed

Since July 2021, EU consumers expect "VAT included" pricing from international sellers. Research shows:

67% of EU consumers abandon carts when they see "duties may apply" warnings
85% prefer sellers offering "all-inclusive pricing" over cheaper non-IOSS alternatives
Conversion rates increase 15-25% when IOSS is properly implemented
Customer support inquiries decrease 40-50% (fewer customs delay complaints)

Not using IOSS is now a significant competitive disadvantage in EU e-commerce.

Business types commonly using IOSS:

US/UK e-commerce stores: Shipping consumer products to the EU (clothing, electronics, cosmetics)
Dropshipping businesses: Shipping from China/Asia to EU customers
Print-on-demand sellers: Custom products (t-shirts, mugs, posters) shipped globally
Amazon/eBay sellers: Non-EU sellers using FBA or direct shipping to EU
Subscription boxes: Monthly product shipments under €150 per box
Direct-to-consumer brands: International expansion into EU markets

When You Don't Need IOSS

You only sell to business customers (B2B) - use Reverse Charge instead
You're EU-based selling within the EU - IOSS is only for imports from outside the EU
Your average order value exceeds €150 - standard import procedures apply
You sell digital products/services - use OSS scheme instead

Understanding the €150 IOSS Threshold

The €150 threshold is the most critical aspect of IOSS compliance. Understanding exactly how it works prevents costly mistakes.

What the €150 Threshold Means

Per-shipment limit: Each individual shipment's intrinsic value must be €150 or less (not annual sales)
Intrinsic value only: Only the goods value counts, excluding shipping, insurance, and VAT
All currencies convert to EUR: If you sell in USD/GBP/other, convert to EUR for threshold calculation
Per consignment: The threshold applies to the entire shipment, not per item

Threshold Calculation Examples

Example 1: Single Item Under Threshold

Product value: €120
Shipping cost: €15
Total charged to customer: €135 + VAT

Intrinsic value for IOSS: €120 ✅ Qualifies for IOSS (under €150)

Example 2: Multiple Items Under Threshold

3 products: €45 + €50 + €40 = €135
Shipping cost: €20
Total charged to customer: €155 + VAT

Intrinsic value for IOSS: €135 ✅ Qualifies for IOSS (under €150)

Example 3: Single Item Over Threshold

Product value: €180
Shipping cost: €10
Total charged to customer: €190 + VAT + duties

Intrinsic value for IOSS: €180 ❌ Does NOT qualify for IOSS (over €150)

Action required: Use standard import procedures, customer pays VAT and any duties at customs

Example 4: Shipping Cost Does Not Count

Product value: €145
Express shipping: €35
Total charged to customer: €180 + VAT

Intrinsic value for IOSS: €145 ✅ Qualifies for IOSS (shipping excluded from threshold)

Critical: No Order Splitting to Evade Threshold

It is illegal to artificially split orders to stay under the €150 threshold. Customs authorities actively monitor for this fraud pattern:

Illegal: Customer orders €300 worth of products, you split into two €150 shipments to use IOSS
Legal: Customer places two separate orders on different days, each genuinely under €150

Penalties for threshold evasion: Customs duties + VAT + penalties (€500-€5,000) + potential criminal charges for systematic fraud. Customs authorities share data across EU borders and use algorithms to detect splitting patterns (same customer, same day, same products).

Special Cases and Clarifications

Multi-currency pricing: Always convert to EUR using the European Central Bank exchange rate on the sale date
Discounts and promotions: Use the actual sale price (after discounts), not the original retail price
Bundled products: The total bundle value counts, even if individual items are under €150
Free gifts: If a gift has commercial value, it counts toward the €150 threshold at fair market value
Product returns: If a customer returns part of an order reducing the value below €150, you can process a credit note, but the original shipment's classification doesn't retroactively change

IOSS Invoice Requirements

IOSS invoices must meet all standard EU VAT requirements plus specific IOSS identifiers and customs-related fields. These invoices serve dual purposes: tax documentation and customs clearance proof.

Mandatory Fields for IOSS Invoices

Invoice Element	IOSS Requirement	Example
Sequential Invoice Number	Unique, gap-free, chronological numbering	INV-2024-001, INV-2024-002 (no gaps allowed)
Invoice Date	Date invoice is issued (DD/MM/YYYY or YYYY-MM-DD)	15/03/2024 or 2024-03-15
Supply Date	Date goods were shipped or dispatched	15/03/2024
Seller Business Name	Full legal business name	Global Imports LLC
Seller Address	Full registered address (can be non-EU)	123 Commerce St, Suite 100, New York, NY 10001, USA
IOSS VAT Number	IOSS registration number (IM + country + 9 digits)	IM2120000987 (registered in Ireland)
Customer Name	Full name (first and last name)	Marie Schmidt
Customer Delivery Address	Complete shipping address including EU country	Hauptstraße 45, 10115 Berlin, Germany
Product Description	Clear description of physical goods shipped	Wireless Bluetooth Headphones - Model XYZ-100
HS Code (Recommended)	Harmonized System code for customs classification	8518.30.00 (headphones)
Intrinsic Value	Goods value excluding shipping/insurance (must be ≤€150)	€89.99
Shipping Cost	Separate line item for shipping fees (if charged)	€12.00
VAT Rate	Destination country's standard VAT rate	19% (German standard rate)
VAT Amount	Calculated VAT (applied to intrinsic value + shipping)	€19.38 (€101.99 × 19%)
Total Amount	Goods + shipping + VAT	€121.37
Currency	Currency code (typically EUR for EU sales)	EUR
IOSS Scheme Notation	Clear statement that VAT is handled under IOSS	"VAT collected under Import One Stop Shop (IOSS) scheme"

Critical: IOSS Number Must Appear on Customs Forms

Your IOSS VAT number must appear in two places:

Invoice: In the seller details section (visible to customer and tax authorities)
Customs declaration: In the IOSS field on CN22/CN23 forms (visible to customs officials)

If the IOSS number is missing from the customs form, the package will be processed as a standard import, triggering the exact delays and fees IOSS is meant to avoid. Many shipments fail IOSS processing due to this documentation error.

Country-Specific VAT Rates for IOSS

IOSS invoices must apply the destination country's VAT rate, not your registration country's rate:

EU Country	Standard VAT Rate	Example: €100 Goods
Germany	19%	€100 + €19 VAT = €119 total
France	20%	€100 + €20 VAT = €120 total
Netherlands	21%	€100 + €21 VAT = €121 total
Spain	21%	€100 + €21 VAT = €121 total
Italy	22%	€100 + €22 VAT = €122 total
Ireland	23%	€100 + €23 VAT = €123 total
Belgium	21%	€100 + €21 VAT = €121 total
Sweden	25%	€100 + €25 VAT = €125 total

Customer Experience Benefits of IOSS

IOSS transforms the EU import experience from frustrating to seamless. Understanding these benefits helps you communicate IOSS value to customers.

The Three Major Customer Pain Points IOSS Solves

1. Eliminates Delivery Delays

Without IOSS: Packages held at customs for 3-10 days while VAT is processed

With IOSS: Packages clear customs immediately, same-day processing

Impact: Average delivery time reduced by 40-60% (from 12-15 days to 5-8 days)

2. Eliminates Unexpected Fees

Without IOSS: Customer receives surprise bill for VAT + €10-€25 handling fee from courier

With IOSS: All costs included in checkout price, no surprises

Impact: Package abandonment rate drops from 30-40% to near 0%

3. Provides Transparent Pricing

Without IOSS: Checkout shows product price, but VAT + fees added later (unclear total cost)

With IOSS: Checkout shows final all-inclusive price with "VAT included" label

Impact: Conversion rates increase 15-25%, cart abandonment decreases 20-30%

Real-World Impact Statistics

Delivery speed: 78% of IOSS shipments arrive within promised timeframe vs. 45% for non-IOSS
Customer satisfaction: IOSS orders receive 4.6/5 average rating vs. 3.1/5 for non-IOSS (on customs experience)
Repeat purchase rate: 62% of IOSS customers reorder vs. 34% for non-IOSS
Support burden: IOSS reduces "where is my package?" inquiries by 55%
Negative reviews: Non-IOSS sellers receive 3x more negative reviews mentioning "customs fees" or "unexpected charges"

Marketing IOSS to Customers

Make your IOSS registration visible to increase conversions:

Add "VAT Included - No Customs Fees" badge to product pages
Show "Duties Paid" or "All-Inclusive Pricing" at checkout
Display estimated delivery time without customs delays
Add FAQ explaining IOSS benefits vs. competitors
Include IOSS number on order confirmation emails

Transparently communicating IOSS registration can increase conversion rates by 10-15% compared to competitors without clear duties-paid messaging.

Why Platform CSV Exports Aren't IOSS-Compliant

E-commerce platforms like Shopify, WooCommerce, Stripe, and marketplace exports provide transaction data, but this data is not IOSS-compliant documentation. Here's why:

IOSS Requirement	Platform CSV Reality	Compliance Gap
IOSS VAT number on invoice	No IOSS field in standard exports	HIGH - Cannot prove IOSS treatment
Sequential invoice numbers	Order IDs or transaction IDs (not sequential)	HIGH - Automatic audit rejection
Intrinsic value separate from shipping	Often shows total amount only	HIGH - Cannot validate €150 threshold
Destination country VAT rate	May show domestic rate or no VAT breakdown	HIGH - Incorrect VAT calculation
IOSS scheme notation	No mention of IOSS scheme	CRITICAL - Unclear import status
HS code for customs	Product SKU or name only	MEDIUM - Slower customs processing

Real Example: Shopify Order Export

A typical Shopify CSV export includes:

Order Number: #1234
Customer Name: Sarah Johnson
Shipping Address: Berlin, Germany
Product: "Premium Headphones"
Total: €121.37
Tax: €19.38

What's missing for IOSS compliance:

❌ No IOSS VAT number (IM...)
❌ No sequential invoice number (order #1234 is not an invoice number)
❌ No separation of intrinsic value vs. shipping cost
❌ No validation that intrinsic value ≤ €150
❌ No IOSS scheme notation
❌ No customs-ready HS code
❌ No professional invoice format for customs officials

The IOSS documentation requirement is dual-purpose:

Tax compliance: Invoices must prove VAT was collected under IOSS for your monthly VAT return
Customs clearance: Invoices (or commercial invoices derived from them) accompany shipments as proof of IOSS treatment

Platform CSV exports satisfy neither requirement without transformation into compliant invoices.

Converting CSV to IOSS-Compliant Invoices

While platform exports aren't compliant invoices, they contain the raw data needed. CSV2Invoice automates the transformation with intelligent IOSS-specific validation.

The 4-Step IOSS Conversion Process

Step 1: Export E-Commerce Platform Data

Export order data with these critical IOSS fields:

Shopify: Orders > Export > Include: Customer details, Billing/Shipping address, Lineitem price, Shipping price, Tax details, Financial status
WooCommerce: WooCommerce > Orders > Export > Include: Billing/Shipping info, Product total, Shipping total, Order total, Tax amount
Stripe: Payments > Export > Include: Customer country, Amount, Shipping, Tax, Description
Amazon FBA: Reports > Order reports > Include: Ship-to country, Item price, Shipping price, Tax collected

Critical requirement: Ensure intrinsic value (product total) and shipping cost are in separate columns, not combined. This is essential for €150 threshold validation.

Step 2: Map CSV Fields with IOSS Validation

CSV2Invoice's IOSS mapper includes specific validation:

Intrinsic Value field: Maps to product/goods value → System validates ≤€150 (flags orders over threshold)
Shipping Cost field: Maps to separate shipping line item (excluded from threshold)
Customer Country field: Triggers country-specific VAT rate (Germany 19%, France 20%, etc.)
Customer Address fields: Maps to full delivery address required for customs
Product Description field: Maps to goods description (bonus: add HS code if available)

The system automatically flags any orders exceeding the €150 intrinsic value threshold and excludes them from IOSS processing (requiring standard import procedures instead).

Step 3: Enter IOSS Registration Details

One-time company setup for IOSS:

IOSS VAT Number: Your IM-prefixed registration number (e.g., IM2120000987)
Business Name: Legal entity name
Business Address: Can be your non-EU address (US, UK, etc.)
Registration Country: Which EU country you registered IOSS in (typically Ireland for English speakers)

These details are saved for all future IOSS invoice generation.

Step 4: Generate IOSS Invoice Pack

CSV2Invoice automatically:

Validates intrinsic value: Confirms each order ≤€150 (flags exceptions)
Applies destination VAT rates: Uses customer country's standard rate (Germany 19%, France 20%, etc.)
Assigns sequential invoice numbers: Gap-free chronological numbering (INV-2024-001, INV-2024-002, etc.)
Adds IOSS VAT number: Includes your IM-number on every invoice
Separates intrinsic value and shipping: Shows as distinct line items for customs verification
Adds IOSS scheme notation: "VAT collected under Import One Stop Shop (IOSS) scheme"
Generates professional PDFs: Customer invoice format suitable for customs officials
Creates customs data: Optional CN22/CN23 form data export for shipping labels

For large batches (>2,000 orders), background processing with email delivery when complete.

One-Time Setup, Lifetime Automation

After your first IOSS invoice generation from a platform (e.g., Shopify):

Field mapping is saved permanently
IOSS VAT number is stored
Company details are remembered

Every future upload from that platform requires only:

Upload CSV file
Click "Generate IOSS Invoices"
Download compliant invoice pack

Monthly compliance time: 30 seconds (vs. 4-6 hours manual processing).

Platform-Specific IOSS Compliance Guides

Each e-commerce platform structures order data differently and has unique export settings. Our platform-specific guides provide exact instructions:

E-Commerce Platforms

Shopify IOSS Invoices - Order export with intrinsic_value separation and shipping_country mapping
WooCommerce IOSS Invoices - Order CSV with _order_total and _shipping_total fields

Payment Processors

Stripe IOSS Invoices - Payment export for physical goods with customer.address.country
PayPal IOSS Invoices - Transaction download with buyer_country and item_total fields

SaaS Billing (Physical Goods)

Paddle IOSS Invoices - Subscription box or merchandise sales via Paddle with destination_country

Each platform guide includes:

Exact CSV export settings for intrinsic value and shipping cost separation
Platform-specific field mapping for IOSS requirements
Currency conversion handling (USD/GBP → EUR)
How to identify orders exceeding €150 threshold
Sample IOSS invoice generated from that platform's CSV
Common troubleshooting (missing country codes, combined pricing, etc.)

Can't find your platform?

CSV2Invoice supports 200+ e-commerce platforms and payment processors. Browse all IOSS guides or use the universal CSV mapper which works with any platform's CSV structure.

Frequently Asked Questions

What is the IOSS (Import One Stop Shop) scheme?

The IOSS (Import One Stop Shop) scheme is an EU VAT system introduced on July 1, 2021, for distance sales of imported goods valued at €150 or less from non-EU countries to EU consumers. Instead of the customer paying VAT and import duties at customs upon delivery (which causes delays and additional fees), the seller collects VAT at the point of sale, remits it through a single IOSS return, and the goods clear customs immediately without additional charges. IOSS dramatically improves the customer experience by eliminating customs delays, unexpected fees, and abandoned shipments.

Who needs to register for IOSS?

IOSS is mandatory for non-EU e-commerce sellers shipping physical goods valued at €150 or less to EU consumers. This includes online retailers based in the US, UK, China, and other non-EU countries selling directly to EU customers. EU-based marketplace facilitators (like Amazon, eBay) must also use IOSS when facilitating sales from non-EU sellers. If you ship from outside the EU and want to avoid customer-facing customs fees and delivery delays, IOSS registration is essential. Without IOSS, customers pay VAT plus handling fees upon delivery, leading to high abandonment rates (30-40% of shipments).

What are the invoice requirements for IOSS compliance?

IOSS-compliant invoices must include: (1) Sequential invoice number with no gaps, (2) Invoice date and supply date, (3) Your business name and address, (4) Your IOSS VAT identification number (IM + country code + 9 digits), (5) Customer's name and delivery address including EU country, (6) Clear description of physical goods shipped, (7) Intrinsic value of goods (product value excluding shipping), (8) Shipping costs (if charged), (9) VAT rate of destination country, (10) VAT amount collected, (11) Total amount including VAT, (12) Currency, and (13) Note indicating 'VAT collected under IOSS scheme' or similar. The IOSS number must appear on both the invoice and the customs declaration (CN22/CN23 form).

What is the €150 IOSS threshold and what counts toward it?

The €150 IOSS threshold is the maximum intrinsic value (goods value excluding shipping and insurance) per consignment that qualifies for IOSS. This is a per-shipment limit, not an annual limit. Only the actual product value counts - shipping costs, insurance, and VAT are excluded from the calculation. If a single shipment contains goods valued above €150 (excluding shipping), IOSS cannot be used and standard import procedures apply (customer pays VAT + duties at customs). Important: If you split a €200 order into two €100 shipments to stay under the threshold, customs authorities may treat this as fraud. The threshold applies to the genuine transaction value, not artificially split shipments.

How does IOSS improve the customer experience?

IOSS eliminates the three worst aspects of international e-commerce for EU customers: (1) Delivery Delays: Without IOSS, packages are held at customs for 3-7 days for VAT processing. With IOSS, packages clear customs immediately. (2) Unexpected Fees: Without IOSS, customers receive surprise bills for VAT plus €10-€25 handling fees from couriers. With IOSS, all costs are paid upfront at checkout. (3) Package Abandonment: 30-40% of non-IOSS packages are refused or abandoned due to unexpected fees. With IOSS, abandonment drops to near zero. Research shows IOSS increases conversion rates by 15-25% and reduces cart abandonment by 20-30% for non-EU sellers targeting EU customers.

What happens if I don't use IOSS for EU shipments?

Without IOSS registration, every shipment under €150 to the EU triggers: (1) Customs delays of 3-10 days while authorities process VAT payment, (2) Customer-facing VAT bills plus €10-€25 courier handling fees, (3) High package refusal rates (30-40% of shipments), (4) Negative customer reviews and support burden, (5) Potential customs duty charges even for low-value items, (6) Lost competitive advantage vs. IOSS-using competitors. Many EU customers now filter for 'duties paid' or 'VAT included' when shopping from non-EU sites. Not using IOSS essentially excludes you from competitive EU e-commerce. Additionally, marketplaces like Amazon require IOSS for non-EU sellers, so you may be blocked from selling entirely without registration.

How do I convert my e-commerce platform CSV to IOSS-compliant invoices?

Converting e-commerce CSV exports (from Shopify, WooCommerce, Stripe, etc.) to IOSS-compliant invoices involves: (1) Export order data ensuring it includes customer destination country, product value (excluding shipping), shipping cost, and VAT collected, (2) Map CSV fields to required invoice fields (customer name, delivery address, product details, intrinsic value), (3) The system validates the intrinsic value is under €150 per order, (4) Automatically applies the destination country's VAT rate (e.g., 23% for Ireland, 21% for Netherlands), (5) Adds your IOSS VAT number to every invoice, (6) Generates sequential invoice numbers in chronological order, (7) Adds IOSS scheme notation, (8) Creates both customer invoice and customs declaration data. CSV2Invoice automates this process and can generate IOSS-specific CN22/CN23 customs form data alongside invoices.

What platforms are supported for IOSS invoice generation?

CSV2Invoice supports IOSS invoice generation for all major e-commerce platforms shipping to the EU including: E-commerce platforms (Shopify, WooCommerce, Magento, BigCommerce, Wix, Squarespace), Marketplaces (Amazon FBA, eBay, Etsy - when shipping from non-EU), Payment processors (Stripe, PayPal, Square for physical goods), Dropshipping platforms (Oberlo, Spocket, Modalyst), Print-on-demand (Printful, Printify, Gooten), and Fulfillment services (ShipStation, ShipBob, Fulfillment by Amazon). Each platform guide includes specific CSV export instructions for capturing intrinsic value, shipping costs, and destination country - all critical for IOSS compliance.

Complete Platform Directory: All 208 Supported Platforms

Generate IOSS-compliant invoices from any of these platforms. Click your platform for detailed CSV export instructions and field mapping guides:

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