IOSS, DDP and prepaid duties
Paying import tax at checkout instead of at the door.
Last reviewed 9 Nov 2026 · knowledge base v2026.11.12-r3 · Not legal, tax or customs advice.
EU: IOSS
- For consignments up to €150, sellers registered for IOSS charge EU VAT at checkout. The €3 duty is levied on the declarant, so it is usually built into the price. Sources: taxation-customs.ec.europa.eu, taxation-customs.ec.europa.eu
- If you return goods, the IOSS VAT refund comes from the seller, not customs. Sources: taxation-customs.ec.europa.eu
UK and Australia
- UK sellers charge VAT at checkout on goods up to £135; Australian sellers and marketplaces charge 10% GST on goods up to A$1,000. Sources: gov.uk, ato.gov.au