IOSS Intermediary Explained: Role, Requirements, and Registration

Selling to EU customers as a non EU business? You’ve probably heard of the Import One Stop Shop (IOSS). It was introduced by the EU in July 2021 as part of a major VAT reform. The goal? To simplify cross border sales of low value goods (valued under €150) and improve fairness, efficiency, and transparency.

Before IOSS, buyers in the EU often faced surprise VAT charges and delays when their packages arrived at customs. Many shipments were even refused due to unexpected fees. For sellers, this led to lost revenue, poor customer reviews, and burdensome paperwork across multiple EU countries.

The IOSS system changes that by allowing sellers to collect VAT at checkout and report it through a single monthly return, regardless of which EU country the buyer is in. 

However, there’s a catch. Only EU established businesses can register directly for IOSS. If you’re based outside the EU, you must appoint an authorized IOSS intermediary to access the scheme legally.

This makes choosing the right intermediary a critical step in expanding into Europe. The right partner will ensure compliance, faster customs clearance, and a friction free customer journey.

What Is an IOSS Intermediary?

An IOSS intermediary is a licensed representative based in the European Union who is legally authorized to act on behalf of non EU businesses under the Import One Stop Shop (IOSS) scheme. Their role is critical if you want to sell low value goods (under €150) to EU consumers while using IOSS to simplify your VAT obligations.

For businesses based outside the EU (such as those in the US, UK, China, or Southeast Asia), you are not allowed to register for IOSS directly. EU law requires that you appoint an intermediary to handle your VAT filings and communication with tax authorities inside the EU.

At Global Trade Business, we serve as your EU based tax representative, allowing you to legally access the IOSS system without setting up a physical presence in Europe. This unlocks major benefits like faster customs clearance, transparent pricing at checkout, and a streamlined VAT process.

The role of an IOSS intermediary includes:

• Registering you for IOSS with a selected EU tax authority.

• Filing your monthly IOSS VAT returns accurately and on time.

• Remitting the collected VAT from your EU sales to the appropriate tax office.

• Maintaining records of your cross border sales for up to 10 years, as required by law.

• Communicating with EU tax authorities if there are questions, audits, or compliance checks.

Simply put, your intermediary is legally responsible for ensuring that your IOSS transactions comply with EU VAT regulations. Without one, you risk shipment delays, non compliance penalties, or complete ineligibility for IOSS.

At Global Trade Business, we’ve built a seamless onboarding process for appointing an IOSS intermediary and managing your VAT filings. Whether you’re just starting EU sales or scaling up, we act as your trusted partner in tax compliance.

Who Needs an IOSS Intermediary?

If your business is not established in the EU, and you sell low value goods (under €150) directly to EU consumers, you need an intermediary to register for IOSS.

The IOSS scheme was designed to streamline EU VAT collection for low value goods. However, non EU sellers cannot register for IOSS on their own. They must appoint an authorized EU based intermediary to handle VAT filings and represent them before EU tax authorities.

At Global Trade Business, we work with a wide range of international sellers (whether you run a Shopify store in Canada, dropship from Asia, or sell on a marketplace from the US). If you’re targeting EU buyers, appointing an intermediary is essential for smooth operations.

You need an IOSS intermediary if you are:

1. A Non EU Online Retailer

If your business is located outside the EU and you sell products directly to EU consumers, you must use an intermediary to register for IOSS. This applies whether you sell from your own website or through social media channels.

2. A Marketplace Seller (Not Covered by the Platform)

Some marketplaces like Amazon or eBay handle IOSS for you. However, this is only for orders they process and fulfill themselves. If you're using the platform for visibility but shipping goods independently (e.g., via your own warehouse or dropshipping), you're responsible for VAT and need an intermediary.

3. A Dropshipper or DTC Brand

If you sell products from suppliers directly to EU customers (without storing goods in Europe), you fall under IOSS regulations. Without IOSS, your shipments will be delayed, and your buyers may be charged VAT on delivery.

Why It Matters

Without an IOSS intermediary, non EU sellers can’t legally participate in the IOSS scheme. That means:

• Your goods may get stuck at customs or be returned due to unpaid VAT.

• Buyers may refuse delivery if surprised by VAT or handling fees.

• Your customer satisfaction and conversion rates drop, especially in competitive markets like Germany, France, or the Netherlands.

At Global Trade Business, we help sellers determine whether they qualify, and we provide fast, compliant IOSS registration and representation. Whether you’re testing the EU market or scaling fast, we make sure VAT won’t get in your way.

What Does an IOSS Intermediary Do?

An intermediary is more than just a middleman. They’re your tax representative in the EU, responsible for handling all your IOSS related VAT duties.

Key responsibilities include:

• Registering you for IOSS with a valid EU tax authority.

• Filing monthly IOSS VAT returns accurately and on time.

• Paying VAT due to the EU authorities from the amounts collected at checkout.

• Maintaining records of all IOSS covered sales for 10 years (a legal requirement).

• Acting as a point of contact with EU tax offices in case of audits or queries.

They’re liable for mistakes, so they must carefully verify your documentation, pricing, and compliance processes.

Requirements to Appoint an IOSS Intermediary

Appointing an IOSS intermediary isn’t just a formality. No. It’s a legal requirement that must follow strict EU guidelines. For non EU sellers like yourself, working with a qualified and compliant intermediary ensures that your VAT obligations are met and that your shipments move smoothly through EU customs.

At Global Trade Business, we make this process simple by guiding you through each step of the onboarding and registration process. But before your IOSS number can be issued, both your business and your chosen intermediary must meet certain requirements.

Here’s what you need to know:

Your Intermediary Must:

• Be established in an EU Member State: The intermediary must be a business or tax representative with a physical presence in the European Union. This ensures they are under the jurisdiction of EU tax authorities and can legally represent non EU clients.

• Be officially authorized: Only intermediaries registered and accepted by EU tax authorities can submit IOSS applications and manage VAT filings on your behalf. At Global Trade Business, we operate through trusted partners with recognized authorization in multiple EU jurisdictions.

• Sign a formal agreement with you: A contract must be in place that clearly defines responsibilities, liabilities, and expectations. This agreement shows EU tax offices that both parties understand their obligations under the IOSS scheme.

Our team at Global Trade Business handles this entire process with standardized, multilingual documentation, so you don't have to navigate EU legal requirements alone. 

You (the Seller) Must Provide:

To register for IOSS via an intermediary, you’ll need to submit a basic set of documents and information for verification and compliance checks. These include:

• Proof of business registration: A valid Certificate of Incorporation or business license from your home country. This verifies that your company is legally formed and operational.

• Tax identification details: Your VAT, GST, or business tax ID (if available) from your local tax authority.

• Power of Attorney (PoA): A signed authorization that gives your intermediary the legal right to act on your behalf for IOSS related matters. This is usually a simple document we prepare for you to review and sign.

• Sales and logistics information: Provide details about: 

• Your ecommerce platform (e.g. Shopify, WooCommerce, custom built site)

• The types of products you sell

• Your shipping origin and logistics providers

• Your estimated monthly sales volume to the EU

This information helps your intermediary calculate expected VAT, choose the most appropriate tax authority for registration (e.g. Ireland, France, or the Netherlands), and ensure your returns are filed accurately.

At Global Trade Business, we’ve built a fast and secure digital onboarding system. You can upload your documents and complete your profile in just a few clicks. No long email chains or paperwork confusion. 

Why This Matters

These requirements aren’t just red tape. They’re designed to ensure:

• Your business is genuine and verifiable.

• Your VAT obligations are accurately fulfilled.

• Your intermediary can be held accountable for filings and payments.

Failure to meet these conditions can result in:

• Delays or denial of IOSS registration.

• Blocked or returned shipments at EU borders.

• Fines and penalties for incorrect or missing VAT payments.

That’s why it’s critical to work with an intermediary who understands the compliance landscape and handles the process end to end. At Global Trade Business, we do just that.

Benefits of Using an IOSS Intermediary

If you're unsure whether it's worth registering through an intermediary, here’s what you stand to gain:

1. Simplified VAT compliance: No more multiple registrations across EU countries. One number, one monthly return.

2. Faster customs clearance: Goods with IOSS are precleared. No delays or returned shipments due to unpaid VAT.

3. Better customer experience: Buyers pay VAT upfront and not at the door. As such, no surprise costs or delivery refusals.

4. Improved pricing and conversions: You can advertise all inclusive pricing, hence boosting trust and checkout conversions.

5. Access to all EU markets: Even if you only ship from outside the EU, IOSS gives you unified access to all 27 member states.

Appointing an IOSS intermediary is essential for most non EU sellers who want to stay compliant while delivering a frictionless experience to EU customers. It’s not just about tax. It’s about enabling growth across borders.

At Global Trade Business, we make the process simple. From document collection to registration and monthly filings, we act as your EU tax partner, so you can focus on your products and customers.

Are you ready to Appoint Your IOSS Intermediary?

Let’s simplify your EU VAT strategy. Whether you’re a Shopify seller, logistics provider, or brand expanding into Europe, we’re here to help.

Contact us now to request a call, get a quote, or start your IOSS registration today.