Understanding EU VAT and the €150 IOSS Threshold
If you’re shopping from our store and based in the European Union (EU), you might have noticed changes in how VAT is handled at checkout. This is due to the Import One-Stop Shop (IOSS) system, which ensures a smoother shopping experience with no surprise fees on delivery.
What Is IOSS?
IOSS is a system that allows businesses like ours to collect VAT at checkout for orders under €150.
This means:
✅ You pay VAT when you place your order.
✅ Your package arrives without extra charges—no surprise customs fees!
✅ Delivery is faster because there are no VAT payments needed at the border.
How the €150 Threshold Works
When our system works out the €150 threshold - it looks at the price of the goods only, excluding VAT, shipping, or insurance. The IOSS does not work over €149.
Here’s how it works:
- If your order’s net value (before VAT) is €149 or less, we collect VAT at checkout, and IOSS applies.
- If your order’s net value is or exceeds €150, IOSS does not apply. Instead, VAT and customs duties must be paid when your package arrives in the EU.
How to Check If IOSS Has Applied to Your Order
To make sure IOSS has applied, check your order summary at checkout.
- If you see a VAT rate listed (e.g., VAT Rate: 19% for Germany or VAT Rate: 21% for Spain), IOSS has applied, and your order will arrive without extra import fees.
- If the VAT rate says 0%, then IOSS has not applied, and you may need to pay VAT and customs fees when your order arrives.
See example image at the bottom of this page.
Additional note
Because of exchange rates fluctuating sometimes the conversation rate from GBP to EURO can inflate the order value when we come to post it there we recommend you aim for no more than €140 on your IOSS orders.
In regards to the July 1st 2026 tariff charges to the EU. (€3 fee per item code). Note that these costs are included in the £12 postage cost and there is nothing more to pay where this matter is concerned.
We hope this helps clarify how VAT works for EU customers! If you have any questions, feel free to contact us.
