What is IOSS and why was I charged VAT twice?

If you have bought something from an online store outside the European Union, you have probably seen "VAT included" at checkout. That is usually thanks to IOSS (Import One-Stop Shop), the EU system that lets sellers collect your country's VAT when you pay, instead of the courier collecting it at your door.

IOSS matters because parcels using it clear customs without stopping for payment, while parcels without it stall until you pay VAT plus a courier handling fee.

How IOSS works

For goods in consignments worth €150 or less, the seller (or the marketplace, for marketplace orders) charges your country's VAT rate at checkout and reports it through a single EU registration. The IOSS number travels with the parcel's electronic customs data, proving the tax is already paid.

Above €150 the system does not apply; VAT and any duty are settled at the border as before. Note that the €150 line now only controls which channel VAT is paid through. Since the EU removed the old duty-free band, low-value parcels can owe a small flat duty on top of VAT, even when VAT was handled through IOSS.

Why was I charged VAT again at delivery?

This is the most common IOSS complaint, and it is usually a data problem:

• The IOSS number did not reach customs. The seller paid VAT correctly but failed to attach the IOSS number to the parcel's electronic declaration, so customs could not see that tax was settled.
• A marketplace and a seller double-registered. Some orders pass through chains where both parties assume the other handled VAT.
• The parcel is above €150. IOSS simply does not apply, so VAT at the border is legitimate.

Can I get a refund if I paid twice?

Yes, but not from customs. The refund comes from whoever collected the first payment:

1. Get proof of the border payment (the carrier's receipt or the postal service's confirmation).
2. Contact the store or marketplace with that proof and your order confirmation showing VAT was already charged.
3. If the store ignores you, escalate: a payment dispute through PayPal or a chargeback through your card issuer covers this, because you were billed twice for the same tax.

Is IOSS mandatory for sellers?

No. It remains optional, though marketplaces like AliExpress and Amazon effectively run it on most of their EU-bound low-value orders. Smaller independent stores that skip IOSS are simply slower and more expensive to buy from, because you pay VAT plus a handling fee at delivery. That checkout checkbox "taxes included" is worth more than it says.

Frequently asked questions

How do I know if my order used IOSS?

Check the order confirmation for "VAT included", "IOSS", or a tax line at the destination country's rate. If the store is a big marketplace, low-value EU orders almost always run through IOSS now.

Does IOSS cover customs duty?

No. IOSS only handles VAT. Duty is a separate charge, and since the 2026 reform it can apply to low-value parcels too. The duty is collected by the courier together with any outstanding VAT.

I was charged a handling fee on top. Is that normal?

Yes, and it is the courier's own charge for advancing money to customs, unrelated to IOSS. The amounts vary by carrier; the breakdown of who charges what is in customs disbursement fees.

My parcel is still stuck even though VAT was paid. What now?

A paid VAT does not guarantee zero customs attention: inspections, missing descriptions and product restrictions can still hold a parcel. The full triage is in my package is stuck in customs.