EU VAT Import One Stop Shop Guide 2026

The Import One Stop Shop (IOSS) is a cornerstone of the European Union’s modern VAT framework for low-value imported goods. Introduced to reduce friction at customs and improve transparency for consumers, the IOSS system allows VAT to be collected at the point of sale rather than at the border. For businesses evaluating VAT IOSS in San Marino, it is essential to understand how the scheme applies when a seller operates from a jurisdiction outside the EU VAT territory.

San Marino occupies a unique position in Europe. While it maintains close economic and customs cooperation with the EU, it is not an EU Member State and does not fall within the scope of the EU VAT Directive. This distinction has direct consequences for how IOSS VAT registration, reporting, and compliance must be handled.

This guide provides a comprehensive explanation of the VAT IOSS system in 2026, with a specific focus on how businesses connected to San Marino should structure their EU import VAT compliance. Where rules vary by country or depend on transaction details, readers should always rely on official EU and national tax authority guidance for final determinations.

Quick Overview

• San Marino is outside the EU VAT territory
• IOSS VAT registration cannot be completed in San Marino
• IOSS applies only to imports into the EU of goods valued at €150 or less
• VAT is collected at checkout, not at customs
• San Marino-based sellers must register for IOSS through an EU Member State
• A fiscal intermediary is generally required for non-EU sellers
• Customs declarations must include a valid IOSS number to avoid import VAT at delivery

Understanding the VAT IOSS Scheme in San Marino

Before examining registration and filing procedures, it is essential to understand what the IOSS scheme is designed to achieve and how San Marino’s legal position affects its application.

The Import One Stop Shop is an EU VAT simplification mechanism created to address long-standing challenges in cross-border eCommerce. Before IOSS, VAT on low-value imports was often collected at the border, leading to delivery delays, unexpected charges for consumers, and high administrative costs for customs authorities.

When discussing IOSS VAT registration in San Marino, one critical point must be emphasized: IOSS is governed exclusively by EU VAT law. Because San Marino is not subject to the EU VAT Directive, it cannot operate an IOSS portal or act as a Member State of Identification. However, businesses established in San Marino may still use the IOSS system indirectly, provided they follow EU registration and intermediary rules.

What Is the VAT IOSS Scheme?

The VAT Import One Stop Shop (IOSS) is a special VAT scheme that simplifies the declaration and payment of VAT for certain imported goods sold to EU consumers.

Core Purpose of IOSS

The IOSS scheme was introduced to:

• Shift VAT collection from the border to the point of sale
• Improve VAT compliance on cross-border eCommerce
• Eliminate surprise VAT charges upon delivery
• Speed up customs clearance for low-value goods

Key Characteristics of the IOSS Scheme

• Applies only to distance sales of imported goods
• Consignment value must not exceed €150
• Excise goods are excluded
• VAT is charged based on the customer’s EU Member State
• VAT is reported through a monthly IOSS return
• Import VAT is exempt when a valid IOSS number is used

IOSS does not replace customs declarations; it changes how and when VAT is collected.

OSS vs IOSS: Which Scheme Fits Your Business Model?

Choosing between the One Stop Shop (OSS) and the Import One Stop Shop (IOSS) is a critical VAT compliance decision for businesses selling to EU consumers. Although both schemes aim to simplify VAT reporting, they apply to different transaction types, supply chains, and points of taxation. Selecting the wrong scheme can lead to incorrect VAT collection, customs delays, or the need for corrective filings.

This section explains the practical differences between OSS and IOSS and outlines the key factors businesses should evaluate when determining which scheme, if any, fits their business model.

Core Functional Difference Between OSS and IOSS

At a high level, the distinction between OSS and IOSS lies in where the goods or services are located at the time of sale.

• OSS applies to supplies that are already within the EU VAT territory at the time of sale.
• IOSS applies to goods that are outside the EU and imported into the EU after the sale.

This territorial distinction is fundamental and should be assessed before considering any other factors.

When Is the OSS Scheme the Right Fit?

The OSS scheme is generally appropriate when:

• Goods are stored in an EU warehouse or fulfillment center
• Sales involve intra-EU distance sales of goods
• The business supplies cross-border B2C services within the EU
• VAT is due in multiple EU Member States based on customer’s location

In these cases, OSS allows businesses to declare VAT through a single quarterly return, rather than registering in each Member State where customers are located.

When Is the IOSS Scheme the Right Fit?

The IOSS scheme is designed specifically for:

• Distance sales of imported goods into the EU
• Goods with a consignment value of €150 or less
• Non-exempt goods sold directly to EU consumers
• Situations where VAT is collected at checkout, not at customs

IOSS is particularly relevant for non-EU sellers, including those established in jurisdictions such as San Marino, who ship goods directly to EU consumers.

Situations Where Neither OSS nor IOSS Applies

There are several common scenarios where neither OSS nor IOSS can be used, including:

• Goods valued above €150
• Excise goods, regardless of value
• Imports where VAT is paid at the border
• B2B transactions
• Domestic sales within a single EU Member State

In these cases, businesses must rely on standard VAT registration and import procedures.

Decision Matrix: OSS vs IOSS vs Standard VAT Procedures

Key Factors to Evaluate Before Choosing a Scheme

Before selecting OSS or IOSS, businesses should assess:

• Origin of goods at the time of sale
• Consignment value
• Type of goods (excise vs non-excise)
• Customer location
• Role of marketplaces or intermediaries
• Customs declaration responsibilities

Each factor influences whether VAT should be reported through OSS, IOSS, or standard VAT mechanisms.

Who Can Use the IOSS Scheme in San Marino?

Although San Marino cannot host IOSS registrations, businesses connected to San Marino may still qualify to use the scheme under EU rules.

Eligible Participants

The following parties may use IOSS for EU imports:

• San Marino–established sellers shipping low-value goods to EU consumers
• Non-EU businesses making distance sales of imported goods
• Online marketplaces acting as deemed suppliers
• Postal operators and couriers, acting on behalf of IOSS-registered sellers

Intermediary Requirement for San Marino Businesses

Because San Marino is outside the EU VAT territory:

• An EU-established IOSS intermediary is generally required
• The intermediary assumes joint responsibility for VAT compliance
• Certain exemptions may apply but must be verified through EU guidance

Obligations for Online Retailers Under IOSS

Using the IOSS scheme imposes specific compliance obligations on sellers and marketplaces.

Core Obligations Explained

Retailers must:

• Collect VAT at checkout using the correct EU VAT rate
• Determine customer location accurately
• Apply correct valuation rules for consignments
• Submit monthly IOSS VAT returns
• Pay VAT on time to the Member State of Identification
• Ensure proper use of the IOSS number in customs filings
• Retain detailed transaction records

Failure to comply may result in removal from the IOSS scheme.

Benefits of IOSS VAT Registration in San Marino 

While San Marino does not operate IOSS itself, businesses using IOSS via the EU benefit from meaningful operational advantages.

Practical Benefits

• Faster customs clearance
• No VAT charged at delivery
• Transparent pricing for consumers
• Reduced shipment refusals
• Improved customer satisfaction
• Simplified monthly VAT reporting

These benefits apply only when IOSS rules are followed precisely.

Customs Considerations for IOSS

IOSS simplifies VAT, not customs compliance. Understanding the customs interface is critical.

Customs Alignment Under IOSS

• A valid IOSS number must appear on customs declarations
• Incorrect or missing IOSS numbers invalidate VAT exemption
• Customs duties may still apply where relevant
• Incorrect valuation can trigger border VAT and penalties

San Marino-origin shipments must fully align with EU customs rules.

How to Register for IOSS in San Marino?

Because San Marino is not part of the EU VAT territory, it cannot host its own IOSS registration portal or act as a Member State of Identification for IOSS. However, businesses based in San Marino can still use the IOSS scheme by registering in an EU Member State and, where required, appointing an EU-established intermediary.

EU VAT rules govern the registration process and must be completed through an official tax authority portal in the Member State chosen for identification. Below is a detailed, step-by-step guide for San Marino-linked sellers.

Step 1: Confirm Your Business’s IOSS Eligibility

Before beginning the registration process, verify that your business activities qualify for IOSS:

• Your business makes distance sales of imported goods to EU consumers.
• The consignment value does not exceed €150.
• The goods are non-excise products (excise goods are excluded).
• VAT will be collected at the point of sale (checkout) rather than at customs.

If any of these core conditions are not met, IOSS may not be the appropriate scheme, and standard import VAT procedures might apply.

Step 2: Select an EU Member State of Identification

Since San Marino is outside the EU VAT area, you must choose an EU Member State in which to register for IOSS. The Member State of Identification is where you will:

• Submit your IOSS registration
• File monthly IOSS VAT returns
• Make VAT payments

The choice may depend on practical considerations such as logistics partners, customer base, language, and the availability of a fiscal intermediary (if needed).

Step 3: Determine Whether an IOSS Intermediary Is Required

Because San Marino is outside the EU VAT territory, a fiscal intermediary is generally required unless your business:

• Has a VAT registration in an EU Member State already, or
• Qualifies for any specific exemptions under the chosen Member State’s rules

The intermediary must be established in the EU and will act as a jointly liable party for your IOSS VAT compliance. It is essential to confirm intermediary requirements with the tax authority of the chosen Member State before beginning registration.

Step 4: Prepare Required Documentation and Information

Before initiating registration, gather the necessary documents and details. While exact requirements vary by Member State, typical information includes:

• Legal business name
• Business address (in San Marino and any other establishment)
• Business registration number or equivalent
• Tax identification numbers
• Contact information for VAT correspondence
• Details of the intermediary (if applicable)
• Description of goods to be sold under IOSS
• Projected monthly turnover for IOSS services
• Bank account details for VAT payments

All submitted information must match official business registration documents.

Step 5: Register Using the Official Tax Portal

IOSS registration must be submitted via the official tax authority portal of the selected EU Member State. This typically involves:

• Creating a secure user account on the portal
• Entering the business and intermediary information
• Agreeing to the VAT compliance obligations
• Uploading any required supporting documents

Do not use commercial intermediaries or third-party websites that claim to register on your behalf without routing through the official Member State portal.

Step 6: Receive Your IOSS Identification Number

Once the tax authority processes your application, you will receive an IOSS identification number. This number:

• Must be included in customs declarations for imports under IOSS
• Is referenced on invoices to EU customers
• Is used to file monthly IOSS returns

Store this number securely and share it with logistics partners to ensure it is applied correctly on customs documentation.

Step 7: Integrate IOSS Number into Checkout and Logistics

After registration:

• Configure your eCommerce platform or payment system to charge VAT at checkout using the correct EU VAT rates.
• Ensure your logistics partners (couriers, postal operators) include the IOSS number on import paperwork.
• Confirm that customs systems recognize the IOSS number to exempt eligible consignments from import VAT at the border.

Failure to integrate the IOSS number correctly can lead to import VAT being charged at delivery, negating the benefits of IOSS.

Step 8: Track Compliance and Prepare for Monthly Filing

Successful IOSS registration is just the beginning. Businesses must maintain ongoing compliance, which includes:

• Recording all IOSS transactions in detail
• Maintaining evidence of VAT collected at checkout
• Retaining proof of customer location
• Storing customs declaration references

This information will be essential for accurate monthly IOSS VAT returns.

How to File IOSS VAT Returns for EU Imports From San Marino?

IOSS VAT returns are filed monthly in the EU. For businesses operating from or connected to San Marino, all IOSS filings are handled through an EU Member State, as San Marino is outside the EU VAT territory.

This section outlines the key steps and requirements for filing IOSS VAT returns correctly.

Step 1: Identify IOSS-Eligible Transactions

Before preparing the return, businesses must identify all transactions that qualify for IOSS reporting. These include distance sales of imported goods valued at €150 or less, excluding excise goods, where VAT was collected at checkout. Transactions that fall outside these criteria must not be included in the IOSS VAT return.

Step 2: Compile VAT Data by Customer Location

VAT under IOSS is reported based on the EU Member State where the customer is located. For each country, businesses must aggregate the total taxable value and VAT collected using the applicable local VAT rates. Accurate customer location determination and rate application are essential.

Step 3: Prepare and Submit the Monthly IOSS VAT Return

IOSS VAT returns are filed monthly through the official tax authority portal of the EU Member State of Identification. The return includes the IOSS number, the reporting period, and a breakdown of VAT collected per EU country. Returns must be submitted even if no IOSS transactions occurred during the month.

Step 4: Pay the VAT Due

The total VAT reported is paid in a single monthly payment to the Member State of Identification, which then distributes the VAT to the relevant EU countries. Payment deadlines generally align with the filing deadline, and late payments may result in penalties.

Step 5: Make Corrections and Retain Records

Any errors identified after submission are typically corrected in a subsequent IOSS return, following the procedures set by the registering Member State. Businesses must retain supporting records, such as transaction logs, VAT calculations, and customs references, for 10 years.

Special Note for San Marino–Linked Businesses

IOSS VAT returns are never filed with San Marino tax authorities. All reporting and payments are made through the selected EU Member State, and close coordination with logistics partners is required to ensure the IOSS number is correctly included in customs declarations.

Record-Keeping Requirements Under IOSS

Record retention is a central compliance obligation.

Key Record-Keeping Rules

• 10-year retention period
• Transaction-level data
• VAT rate applied
• Customer location evidence
• Customs documentation alignment

EU audit standards apply regardless of seller location.

Restrictions and Exclusions Under IOSS

While the Import One Stop Shop (IOSS) simplifies VAT reporting for eligible low-value imports, it is not a universal solution for all cross-border sales. The scheme applies only under specific conditions, and shipments that fall outside these parameters must follow standard EU import VAT and customs procedures. Understanding the restrictions and exclusions under IOSS is essential to avoid misapplication of the scheme, incorrect VAT treatment, and potential penalties.

Key Restrictions

• Goods over €150
• Excise goods
• Incorrect valuation
• Misuse of IOSS numbers
• Certain restricted product categories

EU authorities strictly enforce these exclusions.

Common Issues When Using the IOSS System

Businesses frequently encounter issues due to misclassification or process gaps.

Typical Errors

• Applying IOSS to ineligible shipments
• Incorrect VAT rates
• Missing monthly filings
• Customs declaration mismatches
• Improper intermediary coordination

Corrective actions must follow official EU procedures.

How Commenda Supports Cross-Border VAT Compliance

Managing EU VAT compliance from a non-EU jurisdiction such as San Marino requires clear transaction separation and disciplined reporting.

Commenda supports businesses by helping:

• Identify IOSS-eligible shipments
• Structure monthly VAT reporting workflows
• Maintain audit-ready documentation
• Align customs and VAT data
• Support intermediary-based compliance models

Final VAT determinations must always rely on official tax authority guidance. Commenda supports businesses managing IOSS and broader EU VAT obligations by helping structure VAT workflows, separate IOSS-eligible transactions from standard imports, and maintain audit-ready documentation across jurisdictions. 

To explore how VAT compliance workflows can be aligned across EU and non-EU markets, visit Commenda to access additional compliance resources and guidance.

Schedule a free trial today! 

Frequently Asked Questions 

1. Does San Marino’s customs relationship with the EU affect IOSS eligibility?

San Marino’s customs cooperation with the EU does not change its VAT status. While customs processes may be aligned in certain respects, VAT remains governed by EU law for imports into the EU, and San Marino is treated as a non-EU jurisdiction for IOSS purposes.

2. Can a business use multiple IOSS numbers if it operates several online stores?

No. A business may only use one IOSS identification number for all IOSS-eligible transactions. Operating multiple storefronts does not permit multiple IOSS registrations for the same legal entity.

3. Are marketplaces always responsible for IOSS VAT reporting?

Not always. Marketplaces may be deemed suppliers for certain transactions under EU VAT rules, but responsibility depends on the business model, contractual arrangements, and shipment structure. Sellers must assess whether VAT liability shifts to the marketplace in each scenario.

4. What happens if a shipment is split into multiple parcels?

Splitting a shipment does not automatically qualify goods for IOSS if the underlying transaction exceeds the €150 threshold. Artificially dividing consignments to remain under the limit may be challenged by customs authorities.

5. Can IOSS be used alongside standard import VAT in the same month?

Yes. Businesses may use IOSS for eligible low-value imports while using standard import VAT procedures for other shipments, such as goods over €150 or excluded product categories. These transactions must be clearly separated in records and reporting.

6. How do EU tax authorities verify IOSS data against customs records?

EU tax authorities may cross-check IOSS returns against customs declarations, carrier data, and payment records. Discrepancies such as missing IOSS numbers or mismatched values can trigger follow-up inquiries or audits.

7. Is IOSS suitable for businesses with fluctuating shipment values?

Businesses with inconsistent order values must carefully assess eligibility on a per-consignment basis. If shipment values frequently exceed €150, reliance on IOSS may be limited, and standard import VAT processes may be more appropriate.

8. Does IOSS automatically cover returns or rejected deliveries?

No. Returns and rejected deliveries require specific VAT adjustments in subsequent IOSS returns and must be supported by documentation. Incorrect handling of returns can lead to over- or under-reporting of VAT.

9. Can IOSS registration be suspended or revoked?

Yes. Repeated non-compliance such as late filings, incorrect VAT reporting, or misuse of the IOSS number, can result in removal from the scheme. Reinstatement is subject to approval by the tax authority.

10. Are internal audits recommended for IOSS compliance?

Yes. Regular internal reviews of VAT logic, valuation rules, and customs alignment are strongly recommended, particularly for non-EU businesses operating through intermediaries.