IOSS VAT obligations for e-commerce 2026: complete guide

Quick answer. The IOSS (Import One Stop Shop) regime, codified in article 298 sexdecies H of the French Tax Code (CGI), allows operators to collect French VAT at a single point on distance sales of goods imported from a third country whose intrinsic value does not exceed €150 per consignment. The return is monthly, due on the last day of the following month. The OSS (article 298 sexdecies G of the CGI) covers, for its part, intra-EU B2C sales beyond the single European threshold of €10,000. Council Directive (EU) 2025/516 (ViDA) of 11 March 2025 maintains the €150 threshold but expands platform obligations.

Since the entry into force of the e-commerce VAT package on 1 July 2021 (Directive 2017/2455 as amended by Directive 2019/1995), three special schemes structure VAT on distance sales to European consumers. The non-Union scheme (article 298 sexdecies F of the CGI) covers B2C services supplied by taxable persons not established in the Union. The Union scheme or OSS (article 298 sexdecies G) covers intra-EU distance sales of goods and certain B2C services. The IOSS scheme (article 298 sexdecies H) covers distance sales of goods imported from a third country whose intrinsic value per consignment is less than or equal to €150.

Council Directive (EU) 2025/516 of 11 March 2025, published in the OJEU on 25 March 2025 and effective from 14 April 2025, extends this framework without overhauling its architecture. The €150 threshold is maintained: its removal, initially planned for 2028, has been deferred to negotiations on the reform of the Customs Union. By contrast, the "Platforms" pillar of the ViDA package broadens the liability of electronic interfaces and progressively imposes cross-border digital reporting (DRR) from 1 July 2030.

At Hayot Expertise, we have supported Shopify, WooCommerce and Pan-EU FBA Amazon merchants since 2021. Recently, a DTC cosmetics brand founder approached us after a €47,000 tax reassessment rebuilt over three financial years: without IOSS registration, shipments from a UK logistics warehouse were subject to VAT collection by the carrier, then re-invoiced to the end customer with customs clearance fees. The post-delivery cart abandonment rate hit 18%. IOSS registration via a French intermediary restored a tax-inclusive checkout experience and recovered 9 points of gross margin. This case illustrates the stakes: IOSS is not merely a tax obligation, it is a commercial competitiveness lever.

Content reference date: 17 May 2026. All thresholds, rates and legal references quoted have been verified against official sources at that date.

Legal definition of the two windows#

The OSS (One Stop Shop) combines the Union scheme (article 298 sexdecies G of the CGI) and the non-Union scheme (article 298 sexdecies F). It applies to intra-EU distance sales of goods between two EU Member States, as well as to certain B2C services (electronic services, telecommunications, broadcasting). Reporting is quarterly, with payment due at the latest on the last day of the month following the calendar quarter.

The IOSS (Import One Stop Shop) rests exclusively on article 298 sexdecies H of the CGI. It applies to distance sales of goods imported from a third country or third territory, provided cumulatively that the intrinsic value of the consignment does not exceed €150 (excluding VAT, excluding shipping costs) and that the consignment contains no products subject to excise duties (alcohol, tobacco, perfumes). Reporting is monthly, with payment due at the latest on the last day of the following month.

OSS vs IOSS comparison table#

Key facts to remember#

IOSS does not relieve sellers from the standard French VAT return (CA3 or CA12) for domestic flows. A single seller can be enrolled in all three regimes in parallel: domestic regime (monthly CA3), quarterly OSS, monthly IOSS. The IOSS number takes the form IM followed by 10 digits (format IMxxxxxxxxxxxx), distinct from the standard intra-Community VAT number starting with FR.

Prerequisites before registration#

Registration takes place in the Member State of identification, in France via the impots.gouv.fr portal, in the professional account area. Three distinct situations coexist:

1. Taxable person established in France or in another EU Member State: direct registration, no mandatory intermediary. The seller retains responsibility for VAT payment.
2. Taxable person established in Norway: direct registration possible thanks to the mutual assistance agreement concluded with the EU, no intermediary required.
3. Taxable person established in any other third country (United Kingdom, United States, China, Switzerland outside specific agreement, etc.): mandatory designation of an IOSS intermediary established in France, who becomes jointly and severally liable for VAT and discharges the reporting obligations on behalf of the seller.

Registration procedure in 6 steps#

1. Verify eligibility of your activity (B2C distance sales of imported goods, unit value ≤ €150, excluding excisable products) and choose your Member State of identification.
2. Select your intermediary if you are established outside the EU (chartered accountancy firm, accredited tax representative, specialised service provider). The intermediary signs an engagement letter setting out its obligations.
3. Log into the professional account on impots.gouv.fr, "Démarches" section, "Service en ligne TVA et e-commerce".
4. Complete the registration form: corporate name, intra-Community VAT number (if any), third country of establishment, issuing bank, requested effective date.
5. Receive your IOSS number (IM format + 10 digits) within 8 to 15 working days. This number must be transmitted to the logistics carrier (DHL, FedEx, La Poste, freight forwarder) for each shipment.
6. Configure your storefront and accounting software to invoice on a tax-inclusive basis at the destination country rate, and to track IOSS sales in a dedicated register compliant with article 242 nonies A of Annex II of the CGI.

Hayot Expertise tip. The IOSS number must never appear on the commercial invoice given to the end consumer, nor on customs documents visible to the recipient. It is transmitted exclusively electronically to the carrier, who in turn provides it to the customs authorities of the country of import. This confidentiality protects against impersonation, which has become a real risk in 2024-2025 according to alerts from the French Customs Directorate (DGDDI).

Single European threshold of €10,000 for OSS#

Article 259 D of the CGI sets at €10,000 excl. VAT per calendar year the cumulative threshold below which intra-EU distance sales of goods and B2C electronic services remain taxable in the seller's country (simplification regime). Beyond this, VAT is due in the country of consumption from the transaction that crosses the threshold. The threshold is assessed globally, all Member States combined.

French VAT exemption (franchise) 2026#

The French VAT exemption does not apply to intra-EU distance sales subject to OSS once the €10,000 threshold has been crossed. For a complete breakdown, see our VAT for SMEs in 2026: rates and deductions.

IOSS and OSS filing calendar#

For details on the filing procedures for standard returns, see our overview VAT return CA3 CA12 2026 calendar.

Article 256 of the CGI, as amended by the 2021 Finance Act transposing Directive 2017/2455, introduces a deemed purchase-resale presumption by electronic platforms in two situations strictly listed:

• Distance sales of imported goods ≤ €150: the platform is deemed to buy from the seller and resell to the end consumer. It collects and remits VAT, usually via its own IOSS number.
• Intra-EU and domestic supplies made by a seller not established in the EU: same tax fiction, regardless of the consignment value.

For the seller, the shift is legally clear-cut: they invoice the marketplace excluding VAT (exemption under article 262 ter of the CGI for the intra-EU flows concerned) and maintain a dedicated register compliant with article 242 nonies A of Annex II. This register must be kept for 10 years and made available to the tax administration of each Member State concerned. In practice, our DTC clients accumulate up to six parallel register obligations (Amazon FBA, Cdiscount, Etsy, Shopify direct, TikTok Shop, La Redoute), which justifies robust multi-channel analytical accounting.

The framework is completed by DAC 7 Directive, transposed in article 1649 ter A of the CGI: since 1 January 2023, platforms file an annual return to the French tax authorities (DGFiP) listing active sellers and their revenues. Our guide DAC 7 obligations for e-commerce platforms and marketplaces details thresholds and transmission formats.

Dropshipping from China#

A French e-retailer running dropshipping with a Chinese supplier shipping directly to the end consumer falls within one of two cases:

• Consignment ≤ €150: IOSS-eligible. The French seller registers for IOSS, invoices on a tax-inclusive basis according to the destination country, and transmits the IOSS number to the carrier. No VAT is collected at customs.
• Consignment > €150: ordinary regime. French import VAT is due (collected by customs or self-assessed via the option under article 1695 II of the CGI), then tax-inclusive invoicing to the French customer or exemption under article 262 ter for intra-EU supplies.

A dropshipper who skips IOSS registration exposes customers to customs clearance fees (€15 to €25 per parcel depending on the carrier) and to extended delivery times, two massive churn factors.

Amazon Pan-EU FBA marketplace#

A Pan-EU FBA seller stores products across several Amazon warehouses (France, Germany, Poland, Spain, Italy). Three layers of obligations stack up:

• Local VAT registration in each country where Amazon stores goods (stock movement = deemed taxable supply within the meaning of article 17 of the VAT Directive).
• OSS for cross-border B2C sales within the EU above €10,000.
• IOSS only if some products are shipped from a non-EU warehouse (rare in Pan-EU but common in hybrid Amazon Multi-Channel Fulfilment setups).

This technical complexity justifies engaging a specialist firm: see our missions on the e-commerce chartered accountant: services and pricing page and the methodology in e-commerce site accounting: keeping clean books.

Micro-entrepreneur under VAT exemption#

A micro-entrepreneur under French VAT exemption (turnover below €85,000) selling €6,000 to Belgian and German consumers stays outside OSS scope as long as the €10,000 threshold is not crossed. Once it is, two options open up: OSS registration to centralise, or VAT registration in each country. OSS is almost always the more economical option. Our deep dive micro-enterprise 2026: thresholds and VAT rules details the associated trade-offs.

B2C digital services (SaaS, online training)#

Electronic services supplied to consumers established in another Member State are taxable at the place of consumption from the very first euro once the global €10,000 threshold has been crossed (sales of goods and electronic services combined). They fall under OSS Union (specific B2C TBE regime: telecommunications, broadcasting, electronic services). Suppliers must collect and retain two non-contradictory pieces of evidence of the customer's location (IP address, billing address, card BIN, SIM country code, etc.).

The 7 most costly errors#

1. Confusing OSS and IOSS: applying the OSS quarterly calendar to IOSS flows triggers a 10% late-filing surcharge (article 1728 of the CGI), even without any payment default.
2. Underestimating intrinsic value: a consignment combining several items whose total exceeds €150 falls out of the IOSS regime, even if each item taken individually is below the cap. Customs scrutinise the attached commercial invoice.
3. Misconfiguring rates in the e-commerce module: Shopify, WooCommerce or Prestashop require a country-by-country rate matrix. A sale shipped to Hungary at the French rate of 20% instead of the Hungarian rate of 27% is VAT fraud, even in good faith.
4. Omitting to keep the IOSS register: article 242 nonies A of Annex II of the CGI mandates a detailed register kept for 10 years, containing 13 mandatory data points (order number, value, country, date, applicable rate).
5. Failing to reconcile OSS returns with the accounts: the tax administration can rebuild turnover by cross-matching the Amazon Tax Document Library, Stripe, transport data and OSS returns. Discrepancies trigger an audit.
6. Forgetting the IOSS mention on pre-customs declarations: without electronic transmission of the IOSS number to the carrier, the shipment is processed under ordinary law and the recipient pays VAT twice. Reimbursement is administratively heavy.
7. Keeping liable-person status after marketplace shift: on sales for which the platform has become the liable party (article 256 CGI), continuing to collect VAT leads to double taxation and a reassessment risk.

Sanctions applicable in case of non-compliance#

On the ground, the main strategic mistake of non-European e-retailers is to defer IOSS registration on the grounds that it requires a French intermediary and a recurring cost estimated at €200-600/month. This apparent saving is a false economy. Without IOSS, two scenarios arise: either the marketplace becomes liable (Amazon, eBay) and the seller loses control of its tax-inclusive pricing; or the carrier invoices the recipient for import VAT plus a customs clearance fee (€15-€25 at La Poste, up to €50 at DHL Express). In both cases, the final cost is borne by the consumer through a degraded checkout experience and a return rate multiplied by two or three.

The economic trade-off tips clearly in favour of IOSS from 400 monthly shipments into the EU onwards. The intermediation cost (between €3,000 and €7,000 per year for an Asia-EU seller) is amortised by reduced post-delivery churn, improved NPS and eligibility for "fast delivery" badges on marketplaces.

The second area of attention concerns the ViDA Directive 2025/516. While the removal of the €150 threshold has been postponed, the rollout of digital reporting requirements (DRR) from 1 July 2030 will reshape the chain. Sellers preparing today for compliance with structured multi-channel accounting and a PSP (Stripe, Adyen) integrated into an accounting ERP will be ahead of the curve. Our e-invoicing 2026 support includes the ViDA diagnosis from the initial audit engagement.

Hayot Expertise tip. Before any IOSS registration, commission a flow-by-flow mapping (stock origin, country of consumption, marketplace involved, average unit value, shipping frequency). This mapping makes it possible to identify the flows falling under each regime, to quantify the annual filing workload and to size the IOSS intermediary correctly. A 3 to 5-day scoping engagement is enough for 90% of e-commerce SMEs and avoids unnecessary registrations or costly omissions.

• IOSS = B2C sales of imported goods ≤ €150 per consignment, monthly return (article 298 sexdecies H of the CGI).
• OSS = intra-EU B2C sales above the single €10,000 threshold, quarterly return (article 298 sexdecies G).
• A seller outside the EU (except Norway) must designate an IOSS intermediary established in France, jointly and severally liable.
• Marketplaces become liable for VAT on sales ≤ €150 and on sales by non-EU sellers (article 256 CGI).
• The ViDA Directive 2025/516 keeps the €150 threshold and introduces the DRR on 1 July 2030.
• Cumulative sanctions in case of default: 10% to 80% surcharges and register-specific fines (€10,000 per breach).

To frame the complete methodology (Shopify, Amazon, marketplaces, country-by-country OSS, IOSS, net margin per channel), read our VAT e-commerce 2026 panorama (OSS, IOSS, marketplaces) and our dedicated page e-commerce chartered accountant. If you are launching a DTC brand, also see chartered accountant for DNVB and e-commerce startups.

Need e-commerce VAT support? Our firm masters the OSS and IOSS windows for SMEs, as well as the IOSS intermediary role for non-EU sellers. Request a free quote

Official sources#

• Impots.gouv.fr — Distance sales of imported goods ≤ €150
• Légifrance — Article 298 sexdecies H of the CGI (IOSS)
• Légifrance — Article 298 sexdecies G of the CGI (OSS Union)
• BOFiP — BOI-TVA-DECLA-20-20-60-10
• BOFiP — BOI-TVA-DECLA-30-10-15 (e-commerce registers)
• Légifrance — Council Directive (EU) 2025/516 of 11 March 2025 (ViDA)
• European Commission — VAT in the Digital Age (ViDA)