In short
- IOSS is not legally mandatory (as of 25 Sept 2025). You can ship without it.
- Without IOSS (DDU), EU buyers typically pay import VAT, the €3 customs duty and a carrier handling fee (€3–€15) on delivery. That hurts conversion and customer experience.
- With IOSS, you collect VAT at checkout and the parcel clears customs without the carrier handling fee. Fewer surprises, fewer complaints, fewer returns.
- Even after modest compliance costs, everyone wins: customers pay less and get parcels faster; your store gets higher conversion and fewer support tickets; carriers face fewer refusals.
What changed on 1 July 2026
Since 1 July 2026 a flat €3 customs duty applies to B2C consignments valued at €150 or under entering the EU. It is charged per customs item, meaning per HS code line, so a parcel with three different products attracts €9. IOSS covers VAT only, so this duty is due whether or not you use IOSS.
What IOSS changes is who pays it and when. With a carrier delivery term that prepays the duty, you are billed for it and the customer pays nothing on delivery. Without one, the customer is asked for the duty plus the carrier's handling fee at the door. Availability varies by carrier and destination country.
Why it’s a win‑win
For your customers
- No surprise fees at the door: VAT is prepaid and, where the duty is prepaid too, the usual €3–€15 carrier “handling/clearance” fee is avoided.
- Faster delivery: fewer customs holds.
- Transparent pricing: the price in checkout is the real total; trust increases.
For your business
- Higher conversion & fewer abandoned carts: no “DDU shock” later.
- Fewer tickets & returns: fewer “I had to pay extra” complaints.
- Predictable landed cost: you control the VAT and duty collection and the messaging.
- Easy to pass on costs: small compliance costs can be built into shipping or product pricing.
Worked example: DDU vs IOSS (Germany, 19% VAT)
Scenario: Item €30 (ex‑VAT) + Shipping €6 → €36 charged at checkout. One product line, so one €3 duty.
| Component | DDU (no IOSS) | IOSS with duty prepaid |
|---|---|---|
| Checkout charge (excl. VAT) | €36.00 | €36.00 |
| VAT (19%) | €7.41 (19% of €39, paid on delivery) | €6.84 (19% of €36, paid at checkout) |
| €3 customs duty | €3.00 (paid on delivery) | €0.00 (billed to you, not the customer) |
| Carrier handling/clearance fee | €10.00 | €0.00 |
| Total paid by customer | €56.41 | €42.84 |
Customer saving with IOSS: €13.57 (the avoided handling fee, the duty you absorb and the VAT on it).
On import, VAT is calculated on the value including the €3 duty. Under IOSS, VAT is due on the €3 only if you charge it to your customer. In this example you absorb it, so no VAT applies to it.
Your cost (illustrative): On EAS IOSS Starter, budget ~€1.50/parcel, plus the €3 duty and the carrier's prepaid-duty handling fee where you absorb them. Bigger plans have smaller per parcel costs. Many merchants build this into shipping while still keeping the customer’s total cheaper than DDU.
Handling/clearance fees typically range €3–€15 depending on the destination and carrier. Since 1 July 2026 the €3 duty per HS code line applies to consignments with intrinsic value ≤ €150 as well. VAT remains due, including on the €3 unless you absorb the duty yourself.
Belgium: €21.50 per parcel (for non-exempt consignments up to €150)
Germany: €7.50
Netherlands (PostNL): €6 if paid online, or €11 if paid at a PostNL point
France (La Poste): €2 or €5 if paid online, or €8 if paid on delivery or at a post office
* Pricing note: If you use manual CSV instead of API integration on Starter, a €20/month CSV handling fee applies. Plan details can change, so see the EAS pricing page or contact Support for the latest pricing.
FAQs
Is IOSS mandatory?
No. As of 25 September 2025 it’s optional, but strongly recommended for customer experience and conversion.
Does IOSS cover orders above €150?
No. IOSS applies to consignments ≤ €150. Above that, import VAT and duties are handled at import (DDP/DDU).
Does IOSS remove customs duties?
No. IOSS covers VAT only. Since 1 July 2026 a flat €3 duty per HS code line applies to consignments of €150 or less, and normal tariff duties apply above that threshold. The €150 IOSS scope reflects the EU's low-value import rules rather than a duty exemption. Excise goods and special measures such as anti‑dumping duties remain outside IOSS.
Who pays the €3 duty?
It depends on the delivery term your carrier applies for that destination. Where the duty is prepaid, you are billed for it and the customer pays nothing on delivery. Where it is not, the customer pays the €3 plus the carrier's handling fee at the door. Check your carrier's country coverage before you ship. If you use Royal Mail or Parcelforce, see Royal Mail PDDP limitations: EU countries where the €3 duty is not prepaid.
Can I use DDP without IOSS?
DDP (Delivered Duty Paid) can be used separately, but it usually requires a carrier contract and careful configuration. For orders of €150 or less, IOSS combined with a prepaid-duty delivery term is normally the simpler and cheaper path.
How do I cover the IOSS cost?
Most merchants add a small amount to shipping or product price. Customers still save by avoiding the carrier’s €3–€15 fee and the duty at the door.
Next steps with EAS
- Register at https://easproject.com/reg
- Let EAS handle your store configuration on supported platforms.
- Start selling to the EU with IOSS‑enabled checkout and smooth delivery.
Need help? Contact EAS Support. We can configure your store and reporting so you don’t have to.
Related reading: The €3 EU Customs Duty from 1 July 2026: What We Know So Far; Setting up €3 EU customs duty collection: Shopify, WooCommerce and EAS API; Royal Mail PDDP limitations: EU countries where the €3 duty is not prepaid.