What is IOSS and how does it affect your international orders?

If you have bought something from an online store outside the European Union recently, you probably saw a "VAT included" note at checkout. That is usually thanks to IOSS (Import One-Stop Shop).

1. How does IOSS work?

IOSS allows online sellers to collect VAT (Value Added Tax) at the moment you buy the item. This only applies to "low-value" goods—packages worth €150 or less.

The idea is to make things faster at the border. Since you already paid the tax to the store, the customs office in your country shouldn't stop the package to ask for money.

2. Why was I charged VAT again at delivery?

This is the most common complaint I see. Even if you paid VAT at checkout, your local postal service might ask for it again. This usually happens for two reasons:

• The seller didn't provide the IOSS number: Customs needs a digital record of the IOSS number to prove the tax was paid. If the seller forgot to include it in the digital manifest, customs treats it as "tax not paid."
• The package value is over €150: IOSS does not cover items over this limit. If your order is expensive, you will always pay VAT (and potentially customs duties) when it arrives.

3. Can I get a refund if I paid twice?

Yes, but not from customs. You have to contact the online store. Show them the receipt from your local post office or courier proving you paid the tax a second time. They are responsible for refunding the VAT they collected from you at checkout.

4. Does IOSS cover customs duties?

No. IOSS only handles VAT. If your package is worth more than €150, you might have to pay Customs Duty in addition to VAT. IOSS doesn't apply to those higher-value shipments.

5. Is IOSS mandatory for sellers?

No, it is optional. Some smaller stores might not use it because of the extra paperwork. If a store doesn't use IOSS, you will simply pay the VAT plus a "handling fee" to the courier when the package arrives in your country.