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IOSS or DDP? EU Duty Compliance Checker

Answer 3 questions and get the right VAT/duty setup for your Shopify EU orders — with the Nov 1 €5-per-line change built in.

Answer in 30 seconds:
  • Non-EU, ≤ €150, B2C → IOSS (VAT at checkout). But the €5/line duty + fee still applies from Nov 1 — IOSS covers VAT only.
  • Non-EU, over €150 → DDP (estimated duty collected at checkout, carrier clears). IOSS does not cover high-value parcels.
  • EU-based, cross-border B2C → OSS; B2B with VAT number → reverse charge (0% VAT).
1. Region
2. Value
3. Buyer

Where is your business registered?

This decides which VAT scheme you can use at all.

Why this matters after Nov 1, 2026

The flat fee on low-value EU parcels rises from €3 to €5 per declaration line (€3 duty + €2 Union Handling Fee, Regulation (EU) 2026/382). The scheme you choose decides where VAT is collected — but the duty side is charged separately, per line, regardless of your IOSS/OSS setup. Platform billing often counts product lines separately from the EU rule, which is where overcharges appear.

FAQ

What is the difference between IOSS and OSS?

IOSS (Import One Stop Shop) is for non-EU sellers shipping low-value B2C parcels (≤ €150) into the EU — it collects import VAT at checkout. OSS (One Stop Shop) is for EU-based sellers making cross-border B2C sales within the EU, so they don't register for VAT in every member state.

Does IOSS cover the €5 per line charge from November 1, 2026?

No. IOSS covers VAT only. The €5 per declaration line (€3 duty + €2 Union Handling Fee under Regulation (EU) 2026/382) is a separate customs charge and applies even to IOSS-registered sellers. Under €150 does not make a parcel duty-free — it switches it to the flat-fee regime.

Should I ship DDP or DDU to the EU?

DDP (Delivered Duty Paid) collects estimated duty and tax at checkout and the carrier clears customs on your behalf — better conversion and no surprise fees at the door. DDU/DAP pushes carrier-collected fees onto the buyer before delivery, which is the top cause of package abandonment and bad reviews for EU orders.

Why isn't Shopify charging VAT or duties on my EU orders?

Common causes: a missing VAT registration number in Settings → Taxes and duties → European Union, no shipping zone defined for the EU destination, an order over €150 run through an IOSS setup, or a B2B buyer's valid VAT number triggering reverse charge. Shopify is a collection tool, not a deemed-supplier marketplace — you remain responsible for filing and remitting.

Do non-EU businesses need a fiscal representative for IOSS?

Generally yes. Unless your business is established in a country with a mutual assistance agreement with the EU, non-EU sellers must appoint an EU-based fiscal representative to register for IOSS and share liability for VAT reporting.

See what your platform actually bills

Use the free calculator to compare EU regulation vs Shopify billing line by line — then join the waitlist for the full duty audit engine before Nov 1.

Open the free calculator →