Where Does IOSS Apply? Locations, Boundaries and Exceptions

Where does IOSS apply?

The Import One‑Stop Shop (IOSS) is an EU mechanism, so it applies within the geographic and tax jurisdiction of the European Union. Specifically, IOSS is relevant for goods that are imported from outside the EU into any of the EU member states and sold directly to private consumers (B2C), provided the shipment value does not exceed €150. However, the 'where' question includes subtler points—there are territories and product categories that are excluded, and the place of IOSS registration also matters.

Geographic scope — EU member states

IOSS covers imports into the 27 EU member states. When a parcel from a non‑EU country is destined for any of these member states and meets the low‑value threshold and eligibility rules, IOSS can be used to handle VAT at the point of sale and simplify customs clearance.

Non-EU territories and notable exceptions

Not every territory that uses the euro or is linked to an EU member state participates in the EU VAT territory. Examples excluded from IOSS coverage include:

• Canary Islands (Spain) — regarded as outside the EU VAT territory.
• Ceuta and Melilla (Spain) and some other outermost or special territories.
• French overseas territories and certain special regions depending on their tax status.

These territories have separate VAT or indirect tax rules; IOSS is not applicable to shipments destined for them. Sellers should confirm the VAT rules for the specific destination region before relying on IOSS.

Types of goods and exclusions

Even if the destination is an EU member state, some goods are excluded from IOSS treatment. Typical exclusions include:

• Goods subject to excise duties (alcohol, tobacco, some energy products).
• Goods subject to import prohibitions or licensing rules that require special import procedures.

In those cases, regular import VAT and customs procedures will apply, and IOSS cannot be used to bypass regulatory or tax requirements

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Where is IOSS registration made?

A seller or their intermediary registers for IOSS in one EU member state of their choice. This registration place is important because:

• The member state of registration is where the seller files the single monthly IOSS VAT return and pays the VAT they collected.
• That member state distributes the collected VAT to the EU countries of consumption based on the return's breakdown.

Businesses often select a registration member state based on practical considerations like the presence of an intermediary, language, or administrative convenience.

Where IOSS simplifies logistics

IOSS is particularly useful where carriers and customs authorities can accept the IOSS number on electronic customs declarations and quickly release parcels for delivery. In many EU import hubs and postal processing centers, using IOSS reduces delays and handling charges because the VAT liability has already been settled.

Where IOSS doesn’t change other import rules

Even when IOSS applies, sellers must still comply with product safety, labelling, packaging, and consumer protection rules of the destination country. IOSS only affects VAT collection and import clearance; it does not exempt a seller from customs duties if those goods exceed the €150 threshold or are otherwise duty liable.

Practical advice on geography

• Always verify the destination's VAT territory status—don’t assume overseas territories of an EU country are covered.
• Check whether the product is excise‑duty liable or subject to special import controls.
• Decide on a member state for registration with administrative ease and compliance support in mind.

In short

Use IOSS when shipping low‑value goods from outside the EU to private consumers inside the EU member states. Avoid IOSS for shipments to territories outside the EU VAT area, for goods above the €150 threshold, or for excluded product categories. Knowing exactly where IOSS applies helps sellers set correct prices, avoid delivery surprises for customers, and speed up cross‑border shipping.