What is IOSS (Import One-Stop Shop) and When Does It Apply?
The IOSS (Import One-Stop Shop) is a voluntary scheme that allows non-EU businesses (or EU businesses selling goods from outside the EU) to collect and remit VAT on sales of imported goods valued at €150 or less to EU consumers at the point of sale, simplifying customs clearance and improving customer experience.
When IOSS Applies:
- Import Sales Only: Goods shipped from outside the EU to EU consumers
- Value Limit: Goods valued at €150 or less (excluding transport and insurance)
- B2C Sales: Selling to private consumers, not VAT-registered businesses
- Distance Sales: You (or your platform) arrange the shipment to the customer
When IOSS Does NOT Apply:
- Goods valued over €150 (standard import VAT process applies)
- Goods already in the EU (use OSS instead)
- B2B sales where customer has EU VAT ID (different rules)
- Excise goods (alcohol, tobacco) - always excluded from IOSS
- Goods requiring special permits (weapons, medicines)
Why IOSS Matters for Your Customers:
Without IOSS: Customers pay VAT + handling fees (€10-25) at delivery, causing delays and refusals.
With IOSS: VAT included in purchase price, goods clear customs immediately, no surprise charges.
The Compliance Gap: Why Big Cartel's CSV Needs an Automatic IOSS Fix
If you sell to EU consumers from outside the EU using Big Cartel, you face the challenge of IOSS compliance. While Big Cartel provides transaction data in a CSV, this raw data is not a legally valid IOSS tax invoice required for smooth customs clearance.
EU Regulation 2017/2454 and VAT Directive amendments mandate specific customs documentation and IOSS VAT ID display that Big Cartel receipts simply don't provide, leading to customs delays, customer complaints, and potential deregistration from IOSS.
Problem: Big Cartel's standard export lacks IOSS VAT ID, customs declaration format, and €150 validation.
Risk: Goods stuck in customs, customers refusing delivery due to unexpected fees, loss of IOSS registration.
Solution: CSV2Invoice transforms your Big Cartel CSV into IOSS-compliant invoices with proper IOSS VAT ID display, customs-ready formatting, and automatic €150 threshold validation.
IOSS Registration Requirements
Before using IOSS invoices, you must be registered for the IOSS scheme:
Registration Options:
| Registration Type | Who It's For | IOSS VAT ID Format |
|---|---|---|
| Direct Registration | EU-established businesses selling from outside EU | IM + EU country code + unique number (e.g., IM1234567890) |
| Intermediary Registration | Non-EU businesses (requires EU tax representative) | IM + EU country code + unique number |
| Platform Registration | If you sell through a deemed supplier platform | Platform's IOSS VAT ID is used |
Registration Process: Register in any EU member state (most use their own member state or Ireland for English). You'll receive your IOSS VAT ID starting with "IM" prefix.
Mandatory IOSS Invoice Requirements
Every IOSS invoice accompanying shipments must include:
| Required Field | Legal Requirement | Customs Impact |
|---|---|---|
| IOSS VAT ID | Format: IM + country code + number (e.g., IM1234567890) | Proves VAT was paid at point of sale, enables fast customs clearance |
| Sequential Invoice Number | Unique, gap-free identifier | Prevents fraud, required for audit trail |
| Your Business Details | Full name, address, contact details | Identifies seller for customs and customer inquiries |
| Customer Full Address | Complete delivery address including EU country | Determines import destination and VAT rate applied |
| Goods Description | Clear, accurate description (not generic) | Required for customs classification and valuation |
| Value per Item | Price excluding VAT and transport | Must be ≤€150 to qualify for IOSS |
| Customer's Country VAT Rate | Destination EU country's standard rate | Shows correct VAT was collected |
| VAT Amount | Calculated VAT in EUR | Proves VAT paid, no additional charges needed |
| Total Amount | Goods value + VAT (transport separate if applicable) | Total paid by customer |
| HS Code (Recommended) | Harmonized System commodity code | Speeds up customs classification |
The €150 Threshold Rule
What Counts Toward the €150 Limit:
- ✅ Price of goods (intrinsic value)
- ❌ NOT transport/shipping costs
- ❌ NOT insurance costs
- ❌ NOT VAT itself
What Happens If Value Exceeds €150:
| Scenario | VAT Treatment | Required Documentation |
|---|---|---|
| Single item worth €151 | Cannot use IOSS - standard import VAT applies | Commercial invoice, customs declaration (CN22/CN23) |
| Multiple items totaling €180 in one shipment | Cannot use IOSS - standard import VAT on entire shipment | Commercial invoice showing full value breakdown |
| Two separate orders of €80 each | Can use IOSS for both (separate shipments) | IOSS invoice for each shipment |
Critical: If you include even one item over €150 in an IOSS shipment, customs will reject it and apply standard import VAT + handling fees to the entire shipment.
How CSV2Invoice Guarantees IOSS Compliance for Big Cartel
The 7 Essential Compliance Fixes
| Compliance Requirement | The Legal Mandate | CSV2Invoice Solution |
|---|---|---|
| IOSS VAT ID Display | REQUIRED. Must prominently show IM-prefixed ID on all invoices and customs docs. | Displays your IOSS VAT ID in correct format at top of invoice and customs section. |
| €150 Threshold Validation | REQUIRED. Must verify goods value (excluding transport) is ≤€150. | Automatically flags orders exceeding €150, preventing IOSS mis-application. |
| Sequential Numbering | REQUIRED. Unique, gap-free invoice numbers for audit trail. | Assigns continuous sequential numbers starting from your chosen starting point. |
| Destination Country VAT Rate | REQUIRED. Must apply correct VAT rate for customer's EU country (17-27%). | Automatically applies correct rate based on delivery country from your CSV. |
| Customs-Ready Format | REQUIRED. Invoice must meet customs documentation standards. | Generates invoices in format accepted by EU customs (includes all required fields). |
| Monthly Record Keeping | REQUIRED. 10-year retention of IOSS sales records. | Creates permanent PDF invoices linked to original transaction IDs. |
| Currency Handling | REQUIRED. If not in EUR, must show conversion rate and date. | Handles multi-currency with proper EUR conversion documentation for customs. |
IOSS Filing Deadlines and Penalties
Critical Deadlines:
- Monthly VAT Return: Due by the end of the month following each calendar month (e.g., January sales due Feb 28/29)
- Payment Deadline: Same as return deadline - must pay when filing
- Late Filing Penalty: €100-€1,000 depending on member state and delay duration
- Late Payment Interest: 0.4%-1% per month (varies by registration state)
- IOSS Deregistration: Repeated non-compliance results in removal from IOSS, requiring new registration
Record Retention:
You must retain all IOSS invoices, shipment documentation, and transaction records for 10 years. These must be provided to customs or tax authorities within 10 business days of request.
Step-by-Step: Generating Big Cartel IOSS Invoices
Step 1: Verify Your IOSS Registration Status
CRITICAL: You cannot use IOSS invoices without registration. Verify you have:
- Active IOSS registration in an EU member state
- Valid IOSS VAT ID (starts with "IM")
- Understanding of monthly (not quarterly) filing requirements
Step 2: Export Big Cartel Transaction Data
Export your CSV including: Customer Destination Country, Delivery Address, Product Description, Item Value (excluding shipping), Currency, Order Date, and Order ID.
CRITICAL: Ensure item values are accurate and exclude shipping/insurance to properly validate €150 threshold.
Step 3: Map CSV Fields to IOSS Invoice Requirements
Upload to CSV2Invoice and map fields. Pay special attention to:
- Item Value: Must be goods value only, not including transport
- Delivery Country: Determines VAT rate and customs destination
- Product Description: Must be specific enough for customs (not "merchandise" or "goods")
Step 4: Enter Your IOSS VAT ID
Input your complete IOSS VAT ID (e.g., IM1234567890) in company details. This appears on every invoice.
Step 5: Review €150 Threshold Warnings
CSV2Invoice will flag any orders exceeding €150. You must either:
- Remove these from the IOSS batch and process through standard import VAT
- Split orders if multiple items can ship separately
Step 6: Generate IOSS-Compliant Invoices
Download your invoices, ready to include with shipments for smooth EU customs clearance.
Common IOSS Mistakes to Avoid
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Including shipping cost in €150 calculation | Incorrectly rejecting valid IOSS orders | Only count intrinsic goods value, exclude transport/insurance |
| Using wrong IOSS VAT ID format | Customs rejection, delays, customer charges | Always use IM-prefix format from your registration |
| Processing orders over €150 through IOSS | Customs rejection, VAT + penalties on entire shipment | Validate every item value before including in IOSS batch |
| Vague product descriptions | Customs holds shipment for clarification | Use specific descriptions: "Cotton T-shirt" not "Apparel" |
| Missing monthly filing deadline | €100-1,000 penalty + potential IOSS deregistration | Set reminders for end of month following sales month |
| Not displaying IOSS ID on commercial invoice | Treated as standard import, customer pays VAT again | IOSS VAT ID must be clearly visible on invoice accompanying shipment |
| Using IOSS for B2B sales | Incorrect VAT treatment, compliance issues | IOSS is B2C only; check if customer has VAT ID |
IOSS vs. Standard Import VAT: Customer Impact
| Aspect | With IOSS | Without IOSS (Standard Import) |
|---|---|---|
| VAT Payment | Included in purchase price | Charged at delivery by courier |
| Handling Fees | None | €10-25 per shipment |
| Delivery Time | Fast (pre-cleared) | Delayed 3-7 days for customs processing |
| Customer Experience | Seamless, no surprises | Unexpected fees, potential refusal |
| Return Rate | Low (2-5%) | High (15-30% refuse unexpected charges) |
Frequently Asked Questions
Q: Do I need IOSS if I only ship from within the EU?
A: No. IOSS is only for goods imported from outside the EU. If your goods are already in the EU, use OSS instead.
Q: Can I use IOSS for shipments to the UK?
A: No. The UK left the EU, so IOSS doesn't apply. The UK has its own system with different rules.
Q: What if my shipment contains items both under and over €150?
A: You cannot use IOSS for that shipment. The entire shipment must follow standard import VAT procedures. Best practice: ship separately if possible.
Q: How do I handle returns under IOSS?
A: Issue a credit note reducing your IOSS VAT liability for that month. The customer does not pay VAT when returning goods.
Q: What's the difference between IOSS and OSS?
A: IOSS is for goods imported from outside the EU (≤€150). OSS is for cross-border sales of goods already in the EU. Different schemes, different filing frequencies (IOSS monthly, OSS quarterly).
Q: Do I need a different IOSS registration for each EU country?
A: No. One IOSS registration covers all EU member states, similar to OSS. You file one monthly return.
Q: What happens if customs finds the declared value is wrong?
A: Customs can revalue the shipment. If it exceeds €150, they'll apply standard import VAT + penalties to you and handling fees to the customer. Accurate valuations are critical.
Professional Disclaimer
This guide provides general information about IOSS compliance and is not a substitute for professional customs or tax advice. IOSS rules, customs procedures, and VAT rates can change. CSV2Invoice helps you create compliant invoices but does not provide legal, tax, or customs advice, guarantee acceptance by all customs authorities, or assume liability for your IOSS obligations. Customs clearance depends on many factors beyond invoice format. Always consult a qualified customs broker, VAT advisor, or tax professional for your specific situation, especially for high-value goods, restricted items, or complex multi-country operations.
Ready to Streamline Your Big Cartel IOSS Compliance?
Transform your Big Cartel CSV into fully compliant IOSS invoices with proper IOSS VAT ID display, €150 validation, customs-ready formatting, and all mandatory fields. Eliminate customs delays and improve customer satisfaction with proper IOSS documentation.