Short story: what will change on January 1, 2027?

The basic framework of the IOSS (Import One Stop Shop) will not change. The €150 threshold, the excise goods exclusion and the monthly declaration will remain the same. However, three things will change: a company can no longer use the IOSS and the EU small enterprise VAT exemption at the same time, the IOSS registration details will need to be updated and the rules for input VAT refunds will become clearer. This is what the Council Directive (EU) 2025/516, which Member States will implement from 1 January 2027. Major IOSS reforms, such as the change in import VAT liability, will come later, July 1, 2028.

IOSS and the small business exemption: why do you have to choose?

The new Article 369m(1a) makes the two schemes incompatible. A company that starts using the EU small enterprise VAT exemption must: Deregister from IOSS. And vice versa, anyone who wants to use IOSS later must first waive the exemption. Example: An e-commerce seller in Tallinn who imports goods from China with a value of up to 150 euros and sells to a Latvian consumer cannot simultaneously be under the small enterprise exemption and declare VAT via IOSS in 2027.

Why check registration data before the first sale in 2027?

Article 369p requires that the registration data include an electronic address and, if available, the website details. Thus, it provides Council Directive (EU) 2025/516. Implementing Regulation (EU) 2026/1869 adds the VAT group identifier to it and specifies that the VAT group may not list its permanent establishments in this field.

What will change in input VAT refunds?

Input VAT cannot still be deducted in the IOSS return, but the amended Article 369w clarifies that a claim for reimbursement of costs incurred for IOSS supplies may not be refused solely because the seller made the supplies in the Member State of refund. This is confirmed by European Commission explanatory notes.

What will remain the same on January 1, 2027?

The internal value threshold of €150, the exclusion of excise goods and the monthly declaration and payment will remain in force exactly as they are today. VAT will be calculated at the rate of the consumer's Member State at the time of payment, According to the explanations of the European Commission.

Are Secure IOSS and marketplace rules related?

Customs can already check the IOSS number electronically and no VAT exemption was granted for shipments with an incorrect or missing number. This will not change in 2027. The so-called Secure IOSS anti-fraud system received a legal basis With the 2025 ViDA package, but its implementing regulation is only planned for the end of 2026 and testing will continue in 2027. The exact date for the mandatory shipment-IOSS number linking has not been announced. The extension of the marketplaces„ ”deemed as supplier” rule on 1 January 2027 concerns certain intra-EU supplies, not imported shipments up to €150.

December 2026 Checklist

  • SME status: Check whether the company uses or intends to use the small business exemption - this is not compatible with IOSS.
  • Registration details: Update the website information and add your VAT group ID if it applies to you.
  • Data consistency: Compare the cash register, order and shipping company data to ensure that the IOSS numbers on the shipments match.
  • Rate test: test VAT rate mapping by destination country.
  • Portal monitoring: Follow the portal of the Member State of registration for notifications about new forms and deadlines.

FAQ

Will the IOSS limit of €150 increase on January 1, 2027?

No. The IOSS internal value limit of €150 will remain the same on 1 January 2027 and will not become mandatory. The same applies to the exclusion of excise goods and the monthly declaration and payment.

What three things will change with IOSS in 2027?

Firstly, the compatibility of IOSS and the EU Small Enterprise VAT exemption will change. Secondly, IOSS registration details will need to be updated (including email address and website details). Thirdly, the rules for input VAT refunds will become clearer.

Can a company be in IOSS and use the small enterprise VAT exemption at the same time in 2027?

No. The new provision makes the two schemes incompatible. If a company wants to use the small business exemption, it must deregister from IOSS and vice versa.

Will the input VAT refund claim in the IOSS declaration be automatically prohibited in 2027?

No. Although input VAT cannot be deducted in an IOSS return, the amended rule states that a claim for reimbursement of costs incurred for IOSS supplies cannot be refused solely because the seller made the supplies in the Member State of refund.