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 + 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 extra charges to the customer. 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.
Why it’s a win‑win
For your customers
- No surprise fees at the door: VAT is prepaid; 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 collection and messaging.
- Easy to pass on costs: small compliance costs can be built into shipping or product pricing.
For carriers & tax authorities
- Fewer failed deliveries and correct VAT remitted to the right member state.
Worked example: DDU vs IOSS (Germany, 19% VAT)
Scenario: Item €30 (ex‑VAT) + Shipping €6 → €36 charged at checkout.
| Component | DDU (no IOSS) | IOSS (VAT at checkout) |
|---|---|---|
| Checkout charge (excl. VAT) | €36.00 | €36.00 |
| VAT (19% of €36) | €6.84 (paid on delivery) | €6.84 (paid at checkout) |
| Carrier handling/clearance fee | €10.00 | €0.00 |
| Total paid by customer | €52.84 | €42.84 |
Customer saving with IOSS: €10.00 (equal to the avoided handling fee in this example).
Your cost (illustrative): On EAS IOSS Starter, budget ~€1.50/parcel. Bigger plans have smaller per parcel costs. Many merchants add €1–€2 to shipping to cover this while still keeping the customer’s total cheaper than DDU.
Handling/clearance fees typically range €3–€15 depending on the destination and carrier. Duty is not charged for consignments with intrinsic value ≤ €150; VAT remains due.
* Pricing note: If you use manual CSV instead of API integration on Starter, a €20/month CSV handling fee applies. Plan details can change—see the EAS pricing page or contact Support for the latest.
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 possibly duties) are handled at import (DDP/DDU).
Does IOSS remove customs duties?
No. IOSS only covers VAT. Separately, the EU does not charge customs duties on consignments with an intrinsic value of ≤ €150 (except excise goods and special measures like anti‑dumping/countervailing duties). That’s why the IOSS scope is limited to €150. VAT is still due.
Can I use DDP without IOSS?
DDP (Delivered Duty Paid) can be used separately, but it usually requires a carrier contract and careful configuration. IOSS is the simpler and cheaper path for ≤ €150 orders.
How do I cover the IOSS cost?
Most merchants add €1–€2 to shipping or product price. Customers still save by avoiding the carrier’s €3–€15 fee.
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.