Customs, import VAT and IOSS for e-commerce

• Regulation (EU) No 952/2013 — Union Customs Code
• Directive 2006/112/EC as amended for distance sales
• Regulation (EU) 2019/1020 — Article 4 as a customs check
• Regulation (EU) 2023/956 — CBAM for certain goods

Who has to appoint one

Sellers outside the Union shipping goods to EU consumers. A non-EU seller cannot act as declarant in its own name for most procedures and needs an indirect representative, who becomes jointly liable for the customs debt. IOSS registration requires an intermediary established in the Union unless the seller is in a country with a mutual assistance agreement.

Thresholds and exemptions

IOSS covers consignments of intrinsic value up to €150. Above that, standard import procedures with duty apply. CBAM applies to listed goods such as iron, steel, aluminium, cement and fertilisers.

What must appear on the label

Not a labelling obligation, but the customs declaration must state the correct commodity code, value and origin, and Article 4 economic operator details are increasingly checked at the point of entry.

Marketplace fields

Marketplaces are deemed suppliers for VAT on many transactions, which shifts the VAT liability but not the customs or product obligations of the seller.

Documentation you must hold

EORI registration, IOSS registration with an intermediary, customs declarations, proof of origin where preferential rates are claimed, commercial invoices matching the declared value, and CBAM reports for listed goods.

Standards and testing

Not applicable, though customs laboratories test goods to verify classification, and misclassification is treated as a duty matter with penalties.

Language requirements

Declarations in the language of the customs authority, and supporting documents translatable on request.

When it applies

Registrations before the first shipment. CBAM reporting has run since October 2023 with the definitive regime from 2026.

How long records are kept

Customs and VAT records for the periods set nationally, generally three to ten years.

What happens if you do not comply

Duty and VAT assessments with interest and penalties, seizure of goods, and joint liability of the indirect representative, who will pass it on contractually. Undervaluation is pursued as fraud rather than as an error.

Who enforces it

National customs and tax authorities, and OLAF for fraud investigations.

Where the boundary lies

The customs and product regimes reinforce each other: customs now checks whether an EU economic operator exists under Article 4 for regulated product categories, so a customs problem and a compliance problem arrive together. Splitting consignments to stay under €150 is treated as abuse.

Questions we are asked

Do we need an IOSS intermediary?

Unless established in a country with a VAT mutual assistance agreement with the Union, yes, and the intermediary is jointly liable for the VAT.

Can we declare goods in our own name?

Non-EU established sellers generally cannot act as declarant for release for free circulation and need an indirect representative, who becomes jointly liable for the debt.