VAT & IOSS E-commerce: Complete Obligations 2026

Updated March 2026 - Do you sell online in France or in the European Union? The e-commerce VAT rules and the IOSS one-stop shop (Import One Stop Shop) simplify your obligations, but require increased declaration rigor. This guide details everything SMEs and micro-enterprises need to know.

What is IOSS?

IOSS (Import One Stop Shop) is a European one-stop shop set up since July 2021 as part of the EU e-commerce VAT package (Directive 2017/2455, amended by Directive 2019/1995). It allows e-retailers to:

• ▸Declare and pay VAT on imports of low value goods (≤ €150) from third countries
• ▸Centralize VAT declarations for all distance sales to EU consumers
• ▸Simplify customs formalities (no VAT collected at the border by the consumer)

Who is affected?

How to register?

Registration for IOSS is done online:

1. ▸Access the IOSS portal via impots.gouv.fr
2. ▸Obtain your IOSS VAT identification number (format: IMxxxxxxxxxxxx)
3. ▸Declare monthly the VAT collected on intra-EU sales
4. ▸Pay centralized VAT at the French counter (redistributed to Member States)

Hayot Expertise Advice: The IOSS number is distinct from your traditional intra-community VAT number. Do not confuse them in your invoices and customs declarations.

Single threshold of €10,000 for intra-EU sales

Since 2021, a single threshold of €10,000 applies for B2C intra-EU distance sales (all countries combined). Beyond this threshold:

• ▸You must charge the VAT of the consumer's country
• ▸You must register at the OSS counter (One Stop Shop) or in each Member State
• ▸The OSS centralizes the declaration and payment of VAT for all member states

Example :

A French e-retailer selling €15,000 to German, Belgian and Spanish individuals must:

• ▸Register with the OSS on impots.gouv.fr
• ▸Charge German (19%), Belgian (21%) and Spanish (21%) VAT
• ▸Declare quarterly via the OSS window

Franchise based on VAT in France (2026)

Basic deductible thresholds applicable in 2026:

Attention: the French VAT exemption does not apply to intra-EU distance sales exceeding the threshold of €10,000.

Regular VAT declarations

Depending on your plan, your reporting obligations vary:

• ▸Normal real regime: monthly (CA3) or quarterly declaration
• ▸Simplified real regime: annual declaration (CA12) + half-yearly installments
• ▸OSS: quarterly declaration for intra-EU B2C sales
• ▸IOSS: monthly declaration for imports ≤ €150

Marketplaces: reinforced obligations

Digital platforms (Amazon, Cdiscount, Etsy) are now considered payable for VAT when they facilitate:

• ▸Sales of imported goods ≤ €150
• ▸Sales made by sellers not established in the EU

The marketplace collects, declares and remits VAT in place of the seller. As a seller, however, you must:

• ▸Provide your VAT number to the platform
• ▸Maintain precise accounts of sales via marketplace
• ▸Perform a reconciliation between marketplace data and your accounting

Micro-entrepreneur selling on Etsy

Situation: Creative craftsman, turnover of €45,000 including €8,000 to EU customers outside France.

• ▸French VAT: subject (exceeding threshold €37,500 services)
• ▸OSS: not obligatory (EU sales < €10,000)
• ▸IOSS: not applicable (no import)
• ▸Action: register for French VAT, charge 20% on sales

SME e-commerce with China import

Situation: SME selling accessories imported from China (unit value €30), turnover of €250,000 including €80,000 to the EU.

• ▸French VAT: subject (normal real regime)
• ▸OSS: mandatory (EU sales > €10,000)
• ▸IOSS: registration recommended (imports ≤ €150)
• ▸Action: triple declaration (CA3 + quarterly OSS + monthly IOSS)

Hayot Expertise Advice: Multi-window management (national VAT + OSS + IOSS) is complex. Automate your declarations via compatible software like Pennylane or delegate to a specialized firm.

Digital services (SaaS, apps, online training, streaming) are subject to specific rules:

• ▸VAT of the consumer's country from the 1st euro for B2C sales
• ▸Declaration via the MOSS counter (Mini One Stop Shop), integrated into the OSS since 2021
• ▸Obligation to provide proof of location of the customer (IP address, billing address, bank)

❌ Confusing OSS and IOSS: OSS concerns intra-EU sales; IOSS imports ≤ 150€ ❌ Do not register despite exceeding the €10,000 threshold → risk of recovery ❌ Forget sales via marketplace in your accounting ❌ Apply French VAT on intra-EU B2C sales above the threshold ❌ Charge VAT on export (outside the EU): exports are exempt

Our firm supports e-retailers and digital SMEs in managing their VAT obligations:

• ▸Diagnosis of your sales flows (France, intra-EU, import)
• ▸OSS and IOSS registration
• ▸Setting up VAT rates in your software
• ▸VAT declarations monthly, quarterly and annual

👉 Discover our accounting support

E-commerce VAT in 2026 is based on a one-stop shop system (OSS, IOSS) which simplifies obligations, but requires increased rigor in your declarations. Identify your flows, register at the right counters and keep impeccable accounts to avoid tax audits.

📞 Need e-commerce VAT support? Our firm masters OSS and IOSS counters for SMEs. Request a free quote