- IOSS applies only to consignments of goods with an intrinsic value of €150 or less.
- Intrinsic value = the goods price alone, excluding separately-shown shipping and taxes. So €140 goods + €15 shipping is still within IOSS.
- At or below €150: charge EU VAT at checkout (with an IOSS number); clears customs with no further VAT; no duty.
- Above €150: IOSS can't be used, normal import VAT + possible duty on delivery (or DDP).
- It is per consignment, not per item; excise goods (alcohol, tobacco) are excluded regardless of value.
What is the IOSS €150 threshold?
The IOSS scheme is capped: it applies only to consignments of goods with an intrinsic value of €150 or less. That number is the dividing line between two completely different customer experiences, charge VAT at checkout (smooth), or let customs handle it on delivery (friction). It is part of the broader OSS/IOSS framework.
What counts towards €150: intrinsic value
The threshold is based on intrinsic value, which means the price of the goods themselves, and specifically excludes:
- Transport and insurance costs, where shown separately on the invoice.
- Taxes and duties.
So a €140 order with €15 of separately-stated shipping has an intrinsic value of €140, which is within IOSS, even though the customer pays €155 in total. Get this wrong and you either wrongly charge IOSS VAT on an over-threshold order, or wrongly leave a within-threshold order to customs.
At or below €150
For consignments with intrinsic value of €150 or less:
- With an IOSS number, you charge EU VAT at checkout at the destination country's rate.
- The parcel clears EU customs without VAT being charged again on delivery.
- No customs duty applies, the EU does not charge duty on consignments at or below €150.
This is the clean path: the customer sees a final, all-in price and there is nothing to pay on the doorstep.
Above €150
For consignments with intrinsic value over €150, IOSS cannot be used. Instead:
- The consignment goes through normal EU import procedures on arrival.
- Import VAT and potentially customs duty are charged to the recipient (plus a carrier handling fee), unless you have arranged Delivered Duty Paid (DDP) via a broker so you pay it instead.
For higher-value orders, sellers often use a DDP service or simply make clear at checkout that import charges may apply, to avoid the customer being surprised.
Per-consignment, and edge cases
- Per consignment, not per item. The €150 applies to the consignment as a whole. Two €100 items in one parcel = €200 = over threshold. Splitting genuinely separate orders is fine; artificially splitting one order to dodge the threshold is not.
- Excise goods are excluded. Alcohol, tobacco and other excise goods cannot use IOSS regardless of value.
- Goods only. IOSS is for goods, not services.
If a meaningful share of your EU orders sit near €150, it is worth modelling how often you cross it, it affects whether IOSS via an intermediary pays off.