Banking & Practical

The IOSS: EU Import VAT for Low-Value Parcels

Updated: 19 August 2026 Holdwise editorial team IOSS Parcels E-commerce

With the EU import VAT scheme for parcels (IOSS), you charge the VAT at checkout on parcels up to €150 that you send from outside the EU. Customs clears these parcels quickly, and you file one monthly return. Before the IOSS, buyers often got unexpected bills for VAT and handling fees at the door. Cross-border webshops lost many sales because of this. At Holdwise, we keep this answer up to date and change it when the rules change.

How it works

For consignments with an intrinsic value up to €150, the seller charges the destination country’s VAT at checkout and quotes its IOSS number in the shipping data. Customs clears the parcel with the VAT already paid, so the buyer’s cost is settled in full at checkout. One monthly IOSS return settles all member states. Above €150, standard import rules take over, and the article 23 stock model usually applies instead: see the article 23 licence.

Do you ship parcels to the EU from abroad? See what the EU parcel rules of 2026 mean for duty, VAT and IOSS.

The deemed-supplier rule

If you sell through a marketplace, the responsibility changes. For these low-value imports, the platform is the deemed supplier. It charges and pays the VAT under its own IOSS number. Your sale to the platform is treated as a sale to a business (B2B). See selling on EU marketplaces. For sales in your own webshop, you use your own IOSS registration, which you get through the Dutch portal. Sellers established outside the EU can use an EU intermediary for this.

You can import into the EU through the Netherlands and pay zero VAT at the border. See fiscal representation for non-EU importers. There you read about the Article 23 licence, the EORI number and the monthly work involved.

IOSS compared with EU stock

IOSS suits dropshipping and testing products in small volumes. When volumes increase, many sellers switch to stock in the EU. They import the goods under article 23, ship orders from a local warehouse and deliver the next day. See the EU company for your webshop and the OSS for consumer sales. Many sellers use both at the same time: IOSS for products with low sales, and local stock for the bestsellers.

Free advice

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Part of Doing Business in the Netherlands, the complete 2026 guide.

Frequently asked questions

What happens to parcels above €150? +

They are normal imports. You pay VAT and any duties at the border, or you import stock with an article 23 licence. The €150 limit applies per consignment. Tax auditors often find orders that were split to stay under the limit.

Is IOSS mandatory for low-value imports? +

It is optional. If you skip it, the customer is billed at delivery, with courier handling fees added. Most sellers still collect the VAT at checkout, because more customers then complete the purchase.

When was this last checked? +

Reviewed 19 August 2026. The €150 rules described here are current.

Sources Belastingdienst · KVK · wetten.overheid.nl Last updated: 19 August 2026