What Is an IOSS Number and Why You Need It for EU Shipments

IOSS (Import One-Stop Shop) is an EU scheme that simplifies VAT (Value Added Tax) collection on goods sold to EU consumers from outside the EU. It applies to consignments with an intrinsic value of €150 or less (the value of the goods themselves, excluding shipping and insurance).
Here's the important bit upfront: IOSS is completely optional. Most TUNL merchants do not need one. This article explains what it is, who it's actually for, and what to consider before registering. 📦

What is an IOSS Number?

An IOSS number is an EU VAT identification number (format: IMxxxyyyyyyz) that lets you charge and collect EU VAT at checkout, instead of your customer paying it when the parcel arrives. You then declare and pay that VAT to the EU through a single monthly return, rather than registering for VAT in each EU country you sell to.

Do I Need an IOSS Number?

No, IOSS is not required. If you don't use IOSS, your shipments still clear customs as normal. VAT is simply collected at import instead of at checkout, either from your customer (DAP) or billed back to you (DDP).

IOSS mainly makes sense for:

1. Marketplaces like Amazon and Etsy. If you sell only through a marketplace, you don't need your own IOSS number at all. The marketplace is legally responsible for the VAT and will give you their IOSS number to include on your shipments. ✅
2. Higher-volume sellers shipping to the EU through their own website (e.g. Shopify or WooCommerce stores) who want customers to see a final, VAT-inclusive price at checkout with no surprises on delivery.

For most merchants with lower EU volumes, the cost and admin of IOSS outweighs the benefit. 💡

Do I Need to Be VAT Registered to Use IOSS?

You don't need to be VAT registered in South Africa (or anywhere else) beforehand. However, registering for IOSS is itself a form of EU VAT registration, and it comes with real obligations:

• As a non-EU business, you cannot register directly. You must appoint an EU-based intermediary (a fiscal representative) who registers on your behalf and handles your filings.
• Intermediaries charge fees, typically a setup fee plus a monthly retainer and/or per-transaction fees.
• You must charge the correct VAT rate for each customer's EU country at checkout (rates differ across all 27 member states).
• A monthly VAT return must be filed, even in months with zero EU sales.
• Records must be kept for 10 years, and late or missed returns can result in penalties.

So while IOSS simplifies VAT for high-volume EU sellers, it is a genuine compliance commitment, not a quick add-on. 🧾

IOSS and Trade Agreements Don't Mix ⚠️

This one catches people out. South African goods often qualify for preferential (reduced or zero) duty rates into the EU under the SADC-EU EPA trade agreement.

Under current EU rules, goods can only benefit from preferential trade agreement rates if VAT was not collected through IOSS and the shipment is declared through the standard customs process. In other words: if you use IOSS, you give up your trade agreement benefits on those shipments.

If your products qualify for preferential rates under the SADC-EU EPA, it's worth weighing that saving against the convenience of IOSS before registering.

What Changed on 1 July 2026?

Previously, consignments of €150 or less entered the EU duty free (VAT still applied). As of 1 July 2026, the EU removed this exemption:

• A temporary flat customs duty of €3 per item type now applies to low-value consignments. It is charged per tariff (HS6) line, not per parcel. A parcel with one product type attracts one €3 charge, while a parcel mixing three different product types attracts €9.
• This flat €3 rate applies to shipments where VAT is handled via IOSS.
• Shipments not using IOSS pay duty at the normal tariff rate, which for many South African goods under the SADC-EU EPA can be zero with the right proof of origin.
• The €3 flat fee is a transitional measure, expected to run until mid-2028 when the EU moves to a permanent system.
• Excise goods (like alcohol and tobacco) are excluded from IOSS entirely.

Shipping to the EU Without IOSS

Nothing changes in how you book with TUNL. Your options are:

1. DDP (Delivered Duty Paid): You cover the VAT and duties, so your customer pays nothing on delivery. Best customer experience. 🏆
2. DAP (Delivered At Place): Your customer pays VAT and any duties before delivery. Cheaper for you, but can lead to delivery delays or refusals if the customer wasn't expecting charges.

How to Add Your IOSS Number in TUNL 📝

If you do have an IOSS number (your own, or a marketplace's), here's how to use it:

1. When booking a shipment, add your IOSS number in the "Tax ID" field. This ensures it appears on the commercial invoice so customs and the carrier know VAT has been collected.
2. To save time, add it in the Shipping Defaults section of your TUNL profile so it applies to all future shipments automatically. ⏳
3. Always double-check the commercial invoice includes the IOSS number before shipping. If it's missing, the customer may be charged VAT again on import.

What Happens If I Forget to Add the IOSS Number? 🤦‍♀️

It can be tricky to share your IOSS number with the carrier once the shipment is in transit. The commercial invoice is the primary document used by customs, so a missing IOSS number can cause delays or double VAT charges. If you notice it's missing, contact TUNL right away.

We may be able to update the shipment details, though this isn't always guaranteed. 📞

Quick Recap ✅

• IOSS is optional and covers VAT only, never duties.
• Selling only via a marketplace? Use their IOSS number, no registration needed.
• Registering yourself requires an EU intermediary, monthly returns, and ongoing fees.
• Using IOSS means you can't claim trade agreement (SADC-EU EPA) rates on those shipments.
• Since 1 July 2026, low-value EU shipments are no longer duty free.
• Not sure if IOSS is right for you? Chat to us before registering, we're happy to help you think it through!

🦸‍♀️ Have more questions? We're here to help!

If you run into any issues or have questions, reach out to our support team via Whatsapp here or on email here.

Keywords: IOSS number, VAT, EU shipments, IOSS registration, IOSS intermediary, EU customs reform 2026, €150 threshold, commercial invoice, international shipping, TUNL shipping, non-EU business, SADC-EU EPA, DDP shipping.

Updated on: 08/07/2026