Some people meditate. Others walk in the woods. Some do yoga. And then there’s people like me: I unwind by adding things to my online shopping cart. Not necessarily to buy them—sometimes I just leave them there, like a digital wishlist curated by a better-organized version of myself. But let’s be honest: occasionally I do hit “Order.” Especially when it comes to bike gear, Lego, electronics, or other things I absolutely could have done without.

And often, these treasures make their way to me from the Far East. Not because I’m boycotting local shops, but because those shops are open during office hours—which, inconveniently, is when I’m also at work. So when I’m slouched on the sofa or lying in bed in the evening, that little “Buy Now” button is just so easy to click. One click, and it’s on its way to my doorstep. Click & done. It’s almost like the world was built just for me.

But of course, that’s when I start thinking about VAT.

That single click on my end triggers an entire storm of regulation behind the scenes. Every one of those parcels gets imported into the EU—and that’s when VAT enters the chat. Since July 1, 2021, the EU has tried to make life easier for online sellers—and, indirectly, for couch-based shoppers like me. Anyone selling goods to EU consumers now has to charge local VAT. That used to mean registering in every Member State you ship to—until the IOSS came along.

IOSS—the Import One Stop Shop—is like a simplified tax remote control. A non-EU seller can choose a single EU Member State to submit VAT returns for all cross-border consumer sales under €150. As a buyer, I pay Dutch VAT at checkout, and the tax gets settled behind the scenes. No surprise bills from the postman. No fumbling for coins at the door.

And then there are the platforms. If I order my USB cable through a big online marketplace, in many cases it’s the platform itself that becomes liable for the VAT—not the overseas seller. The platform is deemed to be making the supply. It’s like the marketplace grabs a calculator and says, “Stand back, I’m the taxable person now.”

Let’s get technical

Here’s how it works:

  • For goods under €150 imported from outside the EU, sellers can use IOSS to charge local VAT at checkout.

  • If they don’t use IOSS, import VAT is collected when the goods enter the EU. The subsequent sale is subject to local VAT, for which the seller will have to submit a (normal) local VAT Return.

  • If the sale is made through a platform, that platform often becomes the VAT-taxable person—both for imports and for intra-EU distance sales by non-EU sellers.

  • For goods over €150, the regular import VAT rules apply—with possible reverse charge for business buyers.

These rules aim to ensure VAT is collected efficiently and to level the playing field between EU and non-EU sellers.

All that flows through my head when thinking about webshops and buying stuff online. While I’m relaxing in my sweatpants, scrolling for yet another gadget I don’t need, some database is matching VAT rates across the EU with the contents of my cart. Somewhere, someone is making sure the Dutch tax authorities get their fair share. And I get to feel like a responsible European citizen—doing my part through questionable online purchases.

I’ve learned something: if you order Lego from a Chinese seller via a Romanian platform using a French IOSS number, delivered by a Belgian postman riding a bike bought in Luxembourg—shopping becomes a European integration project.

Or, as my girlfriend puts it: “You buy junk. Then you try to figure out the VAT. What is wrong with you?”

Nothing. VAT is that fascinating tax hiding in plain sight—everywhere, all around you.

As long as you look for it.