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Applying the IOSS scheme in your store

  • Updated
Since July 1, 2021, all goods imported to the EU are subject to cross-border VAT. This indicates that either you should charge your customers at checkout, or they will be charged when receiving their order in the EU. Charging customers at checkout is allowed if the order is below €150 and you register with the Import One Stop Shop (IOSS). Learn more about the EU VAT rules →

If you’ve registered with IOSS, you can charge your EU customers VAT right in your store so they don’t need to pay anything when receiving the order. For that, enable the IOSS scheme on the Taxes page in your store admin.

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Is automatic IOSS supported in my store?

The IOSS scheme can be applied to the customer's cart at checkout if:

  • You’re using automatic taxes in your store.
  • Your store address is outside the EU.
  • Shipping destination for the order is inside the EU.
  • Order costs €150 or less — that is, excluding taxes, shipping, insurance, and any other charges applied to the order (unless they are included in the product price).
  • You've enabled IOSS in your store.

Note:
If your store currency is not the euro, your store will convert the prices according to its internal rates before applying the IOSS scheme.

 

Enabling IOSS in your store

To enable the IOSS scheme in your store:

  1. From your store admin, go to Settings → Taxes & Invoices.
  2. Scroll down to Settings.
  3. Enable the Charge VAT to the European Union customers at checkout toggle.
  4. The changes will be saved automatically.

Now when all the conditions are met, the IOSS scheme will be applied to the customer's cart at checkout and they will be charged the VAT rate of the EU Member State where the order is to be delivered (e.g., 20% for France and 21% for Netherlands).

Note:
Your store enables you to charge due VAT, but we do not declare taxed amounts to the IOSS or provide information for customs clearance in the EU. You are responsible for handling these matters yourself.

 

Registering for the IOSS

After you enable the IOSS scheme in your store, you'll be able to charge VAT for orders that cost €150 or less at checkout. However, you must register for the IOSS to declare and pay these taxes. If your business is located outside the EU, you can do it via an IOSS intermediary: a taxable person established in the EU.

Note:
Your store facilitates charging due VAT, but it does not handle the declaration of taxed amounts to the IOSS or provide information for customs clearance in the EU. These responsibilities must be managed by you.

 

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