EU VAT for E-Commerce: One-Stop Shop (OSS) and Import One-Stop Shop (IOSS)

Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.

This is a regulated fee — required or governed by law in the jurisdictions below.

European Union2 jurisdictionsMandatory

Overview

The EU VAT e-commerce package (in force from July 2021) introduced the One-Stop Shop (OSS) for distance sales of goods within the EU and the Import One-Stop Shop (IOSS) for distance sales of goods imported from outside the EU in consignments not exceeding €150. Sellers (including marketplaces) must charge the VAT of the member state where the goods are delivered and can use a single IOSS registration to report and pay that VAT. For consignments over €150, normal import VAT and customs apply in the member state of import. Merchants selling into the EU typically display VAT as a separate line item at checkout.

Fee schedule by jurisdiction

2 jurisdictions with active fee requirements.

Jurisdiction	Fee	Applies to	Notes
EU (IOSS – imports ≤ €150)	VAT at rate of member state of destination (e.g. 19–27% depending on country)	Distance sales of goods imported into the EU, consignment value ≤ €150	Optional but recommended for non-EU sellers. One registration in one member state covers all EU. Marketplace may be deemed supplier.
EU (OSS – distance sales within EU)	VAT at rate of member state of destination	Distance sales within the EU above national threshold (often €10,000 cross-border)	EU and non-EU sellers can use OSS to report VAT in one return.

EU (IOSS – imports ≤ €150)

VAT at rate of member state of destination (e.g. 19–27% depending on country)

Distance sales of goods imported into the EU, consignment value ≤ €150

Optional but recommended for non-EU sellers. One registration in one member state covers all EU. Marketplace may be deemed supplier.

EU (OSS – distance sales within EU)

VAT at rate of member state of destination

Distance sales within the EU above national threshold (often €10,000 cross-border)

EU and non-EU sellers can use OSS to report VAT in one return.

Enforcement

Failure to register, charge, or remit VAT under OSS/IOSS can result in assessments, penalties, and interest in the relevant member state(s).

Official sources

Shopify compliance

This is a mandatory fee — merchants selling in covered jurisdictions are legally required to collect it. Shopify requires that mandatory fees be clearly disclosed to customers before checkout. Use a Shopify app like Magical Fees to automate collection and ensure compliance.

Last updated: Feb 21, 2026Last verified: Feb 21, 2026Review cycle: annually

This information is maintained by the Magical Apps team and reviewed annually. Always consult official government sources for the most current requirements.

Quick facts

Regulation: EU VAT e-commerce package (OSS / IOSS)
Country: European Union
Jurisdictions: 2
Category: Regulatory Surcharges

Explore EU VAT for E-Commerce (OSS and IOSS) in practice

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Australia

Australian Payment Method Surcharges

Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.

View fee schedule →Canada

Canadian Payment Method Surcharges

In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.

View fee schedule →Germany

Germany Payment Surcharge Rules

Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.

View fee schedule →Spain

Spain Payment Surcharge Rules

Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.

View fee schedule →France

France Payment Surcharge Rules

Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.

View fee schedule →Italy

Italy Payment Surcharge Rules

Under EU PSD2 and the Interchange Fee Regulation, merchants in Italy cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Italian consumer law.

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