OSS and IOSS – what are the differences between VAT procedures in e-commerce?
The most important question is: where are the goods located immediately before shipment?
The location of the goods separates intra-EU sales from imported sales.
One question leads to three different analyses
Don't choose a shipping method based on the customer's country. First, verify the goods' location and how they arrived in the European Union.
Place of goods immediately before shipment
The actual starting point of transport to a specific consumer.
The goods are located in the EU
- Goes to another EU country.
- The buyer is the consumer.
- Check out the ESPO and EU OSS procedures.
The goods are located outside the EU
- It goes directly to the customer in the EU.
- Check value and exclusions.
- Rate IOSS and import.
The goods have already arrived at the EU warehouse
- Import took place earlier.
- The stock is located in the EU.
- Subsequent sale may be WSTO, but not IOSS.
OSS and IOSS in one set
Procedures can run in parallel in one company because they cover different transactions and have different settlement periods.
| Characteristic | EU OSS procedure | IOSS |
|---|---|---|
| Place of goods | The goods are already in the EU | Goods are shipped from outside the EU to consumers in the EU |
| Type of sale | Including WSTO and selected B2C services | Qualifying sales of imported goods |
| Value limit | No limit on shipment value | Actual value of the shipment up to 150 EUR |
| Declaration | Quarterly | Monthly |
| VAT collection | For sales by country of consumption | For sales by country of consumption |
| Import | Does not settle imports | Associated with the clearance of a qualifying shipment |
| ID | Number used in the EU procedure | Protected IOSS number |
| Broker | It does not follow the same rule as IOSS | Generally required for a company outside the EU, unless specific conditions are met |
| Excise goods | Analysis by scope of procedure | Disabled |
| A typical example | Magazine PL → consumer DE | China → DE consumer, shipping 80 EUR |
The Official Rules of Procedure describe the European Commission's information on OSS and IOSS.
150 EUR is not the annual sales threshold
The IOSS limit applies to a single shipment. The €10,000 threshold is a separate issue and does not determine the eligibility of the imported parcel.
Actual value of a specific shipment
Also check exclusions, excisable goods and how the value is determined.
Threshold for ESPO and specific TBE services
Do not use it to assess whether a shipment from a third country is eligible for IOSS.
VAT, customs duty and operator fee are three separate charges
From 1 July 2026, customs duty exemption for shipments up to €150 has been abolished. The value limit for VAT IOSS remains €150.
IOSS or import collection
The method of collecting tax depends on the procedure used and the clearance data.
Separate customs rules
The change from 1 July 2026 does not raise or lower the IOSS limit for VAT.
Carrier or operator
A service charge is not the same as VAT or customs duty.
Current implementation materials are published by the European Commission in the OSS and IOSS guides.
VAT is charged on sale, but clearance remains
Correct flow requires consistent data between the store, platform, carrier and customs declaration.
- 1
Sale
The customer places an order for an imported shipment.
- 2
VAT
The seller or platform collects the tax of the country of consumption.
- 3
IOSS number
The ID is securely passed on to check-in.
- 4
Check-in
The shipment is still subject to customs formalities.
- 5
Declaration
Sales are included in the monthly IOSS settlement.
The intermediary depends on the place of establishment of the seller
We are not expanding on the full IOSS registration here – this section only shows the first organizational difference.
Essentially no IOSS intermediary
- registration is carried out in accordance with the relevant rules of the country of identification;
- the company can use the EU OSS procedure in parallel;
- each procedure involves separate transactions.
Basically with an intermediary in the EU
- the intermediary is responsible for the obligations provided for IOSS;
- an exception requires compliance with the terms of the relevant agreement;
- Norway is a key current case identified in the source material.
The platform can become a recognized supplier
For qualifying import sales up to €150, the platform can settle IOSS. Imports above €150 are not covered by this rule.
The same company may need both procedures
The result is determined by the specific route of the goods, not the general name of the sales model.
Warehouse in Poland, client in Germany
- Location of goods
- EU
- First analysis
- ESPO and the EU OSS procedure
Direct shipping 80 EUR
- Location of goods
- Outside the EU
- First analysis
- IOSS and import
Bulk import to DE warehouse
- Pre-sale location
- Warehouse in the EU
- First analysis
- Subsequent sale may be WSTO, not IOSS
The local context is described in the guides: VAT in Germany, VAT in France and VAT in Spain.
There is no single "IOSS rate"
In both procedures, you apply the country of consumption rate appropriate to the specific product.
VAT in Europe.
Choose your market.
Registration, rates, declarations and local obligations – specifically described for each country where you develop sales.
Featured
Most frequently chosen
Germany
Most frequently chosenVAT Guide 2026
VAT
in Germany
Italy
Update 2026VAT Guide 2026
VAT
in Italy
France
Update 2026VAT Guide 2026
VAT
in France
Netherlands
Guide 2026VAT Guide 2026
VAT
in the Netherlands
Czech Republic
Guide 2026VAT Guide 2026
VAT
in the Czech Republic
Belgium
Guide 2026VAT Guide 2026
VAT
in Belgium
Spain
Guide 2026VAT Guide 2026
VAT
in Spain
What data should you collect before choosing a procedure?
Assign the procedure to a specific goods flow, not to the entire company. Also, check whether the area in question falls within any special EU territories.
Goods and route
- goods or services;
- location of goods before shipment;
- shipping and delivery country;
- direct or bulk import;
- excise goods.
Shipment and participants
- actual value of the shipment;
- platform and recognized supplier;
- IOSS intermediary;
- EORI number;
- secure data flow.
Reckoning
- state of consumption;
- appropriate VAT rate;
- refunds and corrections;
- applying the procedure to qualifying sales;
- OSS, IOSS or out-of-pocket settlement.
Not sure which orders belong to OSS and which to IOSS?
We help separate sales from EU warehouses from imported shipments and prepare the correct data for settlement.
VAT OSS Library
Select a topic on the left. On the right, you'll see a brief summary and a direct link to the relevant guide.
VAT OSS
General guide to the One Stop Shop mechanism, procedures, country of identification and country of consumption.
Read the guideOSS VAT Limit
Explanation of the EUR 10,000 threshold, how it is calculated and when the place of taxation changes.
Read the guideWSTO and VAT OSS
Conditions for intra-Community distance sales of goods, recipients and most important exclusions.
Read the guideOSS and IOSS
Comparison of sales of goods located in the EU with import sales from a third country.
Read the guideVAT OSS registration
Separate instructions for registration to the EU OSS procedure via the VIU-R form.
Read the guideVIU-DO
A practical guide to the OSS quarterly VAT return, EUR currency and UNR number.
Read the guideVAT OSS correction
Rules for settling refunds, discounts and errors relating to a previous period.
Read the guideOSS VAT records
The scope of data needed to prepare declarations and subsequent control of OSS settlements.
Read the guideDeregistration from VAT OSS
Withdrawal from the procedure and change of country of identification.
Read the guideExclusion from VAT OSS
Reasons for exclusion, consequences and conditions for re-registration.
Read the guideOSS VAT audit and penalties
Risks related to errors, missing declarations, arrears and incomplete records.
Read the guideVAT OSS and Amazon FBA
Separation of STO from stock movements and local sales from the foreign warehouse.
Read the guideVAT OSS for sale without own warehouse
Analysis of the supply chain and the choice between OSS, IOSS and local VAT.
Read the guideVAT OSS and trading platforms
Cases in which a platform may be considered a supplier for VAT purposes.
Read the guideVAT OSS and business-to-business sales
Distinguishing the OSS procedure from IDT, INT, place of supply and reverse charge.
Read the guideVAT OSS for consumer services
Services where the place of taxation may be in the country of the consumer.
Read the guideVAT OSS and INTRASTAT
Explanation of why the OSS procedure does not replace statistical obligations.
Read the guideInvoices, KSeF, JPK and cash register
The relationship between the OSS procedure and national documentation and record-keeping obligations.
Read the guideOSS or local VAT
Scenarios in which the procedure does not replace registration and declaration in another country.
Read the guideSME procedure and VAT OSS
Comparison of two separate solutions for cross-border VAT settlements.
Read the guideVAT charged at OSS
Ways to recover VAT on costs outside the OSS declaration.
Read the guideOSS Non-Union Procedure
Non-EU scheme for eligible consumer services provided by non-EU companies.
Read the guidePermanent place of business
The influence of a permanent establishment on the choice of the country of identification and the scope of OSS settlement.
Read the guideEU special territories
Areas that require a separate analysis of the territorial scope of EU VAT.
Read the guideGift cards and vouchers
Settlement of single-purpose and multi-purpose vouchers and the moment of VAT liability.
Read the guideAre you selling from the EU and importing shipments at the same time?
Sort out both transaction streams before preparing your return.
OSS vs. IOSS - Questions and Answers
No. This is a limit on the actual value of a specific shipment.
No. It simplifies VAT collection, but customs clearance remains.
Yes, because the procedures cover different categories of transactions.
Not as an import sale if it is already in the EU before being shipped to the customer.
No. These are different identifiers.
