How to Register for IOSS: Step-by-Step Guide

What is IOSS and who needs it?

IOSS — the Import One Stop Shop — is an EU VAT scheme for businesses selling physical goods to EU consumers where each consignment is valued at or under €150. Without IOSS the customer pays VAT and a handling fee when the parcel arrives at customs — a poor experience that drives cart abandonment and delivery refusals. With IOSS you collect the VAT at checkout, declare it via a single monthly return, and the parcel clears customs immediately with no additional charge to the customer. IOSS is not mandatory but for any business shipping meaningful volumes into the EU it is strongly recommended.

Who should register for IOSS?

• Any business shipping physical goods from outside the EU to EU consumers
• Where individual consignments are valued at €150 or under
• Selling to consumers — B2C. B2B shipments do not use IOSS
• Businesses shipping from the UK, US, Asia or any non-EU country
• Ecommerce businesses, dropshippers and marketplace sellers shipping directly to EU customers

Do you need an intermediary?

Non-EU businesses — including UK companies post-Brexit — must appoint an EU-based intermediary to register for IOSS. The intermediary takes on joint and several liability for your VAT obligations — meaning if you fail to file or pay the Tax Department can pursue them. EU businesses can register directly without an intermediary. The intermediary requirement is often the main obstacle for non-EU sellers — choosing a reliable intermediary in a tax-efficient EU country like Cyprus is an important decision.

How to register for IOSS in Cyprus — step by step

1. Confirm you meet the criteria — non-EU seller, physical goods, consignments under €150, B2C sales to EU consumers
2. Appoint a Cyprus-based IOSS intermediary — required for all non-EU businesses including UK companies
3. Gather required documents — certificate of incorporation, company registration details, description of goods sold, estimated monthly EU sales volume
4. Intermediary submits IOSS registration to the Cyprus Tax Department via Taxisnet
5. Receive your IOSS number — format IM followed by 10 digits — typically 3–4 weeks from submission
6. Integrate your IOSS number into your checkout and shipping system — the number must appear on every customs declaration
7. Begin collecting local EU VAT rates at checkout for each customer country
8. File monthly IOSS return — due by the last day of the month following the sales month — and remit VAT collected

IOSS number format and where to use it

Your IOSS number begins with IM followed by the country code of the registration country and then a unique number — for Cyprus registrations it will be IMCY followed by digits. This number must be included on every customs declaration for parcels covered by IOSS. Without it the parcel will not be cleared under IOSS and the customer will be charged VAT at the border. Make sure your logistics provider or courier knows your IOSS number and how to include it on customs documentation.

Filing monthly IOSS returns

IOSS returns are filed monthly — covering sales from the 1st to the last day of each month. The return is due by the last day of the following month. So January sales are reported by 28 February, February sales by 31 March and so on. The return lists VAT collected by EU member state — for each country where you had B2C sales you declare the number of transactions, the VAT-inclusive sales value and the VAT collected at that country's rate. You make a single payment to the Cyprus Tax Department who distributes it to the relevant member states.

IOSS monthly return deadlines 2026