EU IOSS Import VAT Calculator (orders ≤ €150)

Understanding the EU IOSS import VAT — concept and principle

Since 1 July 2021, goods sold online from outside the EU to EU consumers are subject to VAT from the first euro. For consignments with an intrinsic value of up to €150, the seller can use the Import One-Stop Shop (IOSS): VAT of the customer's country is charged at checkout, declared monthly through one IOSS return, and the parcel is released at import without the buyer paying VAT again. This calculator works out that VAT, the VAT-inclusive price, whether the order falls under the €150 limit and the flat customs duty due from 1 July 2026.

Shipping is part of the taxable amount, but only the goods value counts toward the €150 limit.

How it is calculated

VAT to collect = (goods value + shipping charged) × VAT rate ÷ 100
Price including VAT = (goods value + shipping charged) × (1 + VAT rate ÷ 100)
IOSS eligible if goods value (intrinsic value) ≤ €150
Customs duty (parcels up to €150, from 1 July 2026) = €3 × number of different item types

All inputs and results are in euros.

The principle

VAT is a tax on consumption, charged where the goods are consumed, so the rate is that of the destination country, not the seller's. The taxable amount includes transport to the customer, which is why shipping is added before applying the rate. The €150 test, however, uses the intrinsic value: the price of the goods themselves, generally excluding transport and insurance shown separately.

Worked example

Inputs: goods €80, shipping €8, VAT rate 20%.
Taxable amount = 80 + 8 = €88.
VAT = 88 × 0.20 = €17.60.
Price including VAT = 88 × 1.20 = €105.60.
Intrinsic value €80 ≤ €150, so the result reads yes.
One item type in the parcel: customs duty = 3 × 1 = €3.00.

How to read the result

Show EU customers the VAT-inclusive price and keep the VAT apart from revenue; it belongs to the tax authorities. EU standard VAT rates range from about 17% to 27%, and some goods qualify for reduced rates, so use the correct rate for each country and product. The €3 duty is customs duty, not VAT, so it is not part of the IOSS return. If the result says no, the order is above €150: IOSS cannot be used, and import VAT and duty at normal rates are dealt with at import.

Common mistakes

Applying your own country's VAT rate instead of the buyer's.
Leaving shipping out of the taxable amount.
Including shipping when testing the €150 limit.
Counting the €3 duty once per parcel instead of once per item type.
Using IOSS for excise goods such as alcohol or tobacco, which are excluded.

Keep in mind: This is a simplified estimate and not tax advice. Non-EU sellers usually need an EU intermediary to register for IOSS, Duty relief up to €150 ended on 1 July 2026 and the €3 is an interim measure; check the European Commission's current guidance.

Frequently asked questions

Is IOSS compulsory?

No. Without it, VAT is collected at import, often by the carrier, who may add a handling fee for the customer.

Does the €150 limit apply per item or per parcel?

It applies per consignment, the goods packed and shipped together to one customer.

Do marketplaces handle IOSS for me?

When a marketplace facilitates the sale, it is usually the deemed supplier and collects the VAT.

Sources: Council Directive (EU) 2017/2455 (VAT e-commerce package) · European Commission, Explanatory Notes on VAT e-commerce rules

Checked 8 Nov 2026. EU VAT e-commerce package (1 July 2021), Council Directive (EU) 2017/2455; Council regulation removing the €150 customs duty relief (flat €3 duty from 1 July 2026, Swedish Customs guidance).

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