How does the EU collect VAT?
The EU charges VAT on imported goods, including low-value orders. The IOSS scheme lets VAT be collected at the point of sale (orders up to €150), so buyers are not charged extra at the border.
From 1 November 2026: €5 per HS code
On top of VAT, every parcel sent to the 27 EU countries is charged €5 per HS code: €3 Customs Duty + €2 Handling Fee. Items that share the same 6-digit HS code, description and origin count as 1 HS code (see our HS code guide). The fee is not included in VIO ePacket rates, does not apply to the UK, Switzerland, Norway or Israel, and is non-refundable if a parcel is returned, destroyed or not delivered.
What should sellers do?
- Have a valid IOSS number: VIO ePacket requires IOSS for every EU parcel and only accepts parcels valued under €150.
- Budget for the €5 customs fee per HS code in each parcel.
- Declare value and descriptions accurately.
- Add VAT to your prices or handle it through the platform or your carrier.
Note
If your IOSS number expires, VIO may use a third-party IOSS to pay the VAT and will charge the full VAT plus a 2% service fee on the VAT. Rules can change; confirm with your carrier before you start. See the Europe route.
Frequently asked questions
- Are small orders to the EU subject to VAT?
- Yes. The EU charges VAT on low-value orders too; use IOSS to collect it at the point of sale so buyers are not charged extra.
- What is the IOSS threshold?
- IOSS applies to orders valued at €150 or less. VIO ePacket only accepts EU parcels valued under €150.
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