When shipping orders from the UK to customers in the European Union (EU), Etsy automatically collects VAT at the point of sale for orders under €150. To ensure the package clears customs smoothly without the buyer being taxed a second time upon arrival, Etsy requires sellers to pass their Import One-Stop Shop (IOSS) number and the order value in Euros to the delivery courier.
If you process or review your Etsy orders on the Papello dashboard, you must input these details into the designated Tax Information section before the order is sent to production.
Why Adding IOSS Data is Critical
When an EU customer purchases an item on Etsy, the platform acts as the deemed supplier for VAT purposes:
Etsy collects the applicable EU VAT directly from the buyer during checkout.
Etsy provides you with an IOSS Number and specifies the exact order value in Euros (for example, €63.92).
Papello must submit this electronic IOSS declaration to the shipping carrier when creating the postal label. If omitted, local EU customs will charge VAT again plus additional admin fees to your customer on delivery.
How Etsy Displays the Required Information
On your Etsy order summary screen, you will see a notice similar to this:
"You must share Etsy's IOSS number, [IOSS NUMBER], with your courier for this order (use it only for this purpose). This helps ensure that your buyer won't be charged VAT twice. Make sure to write the value of this order in euros, €63.92, on your package, too."
Step-by-Step: Adding IOSS Details on Papello
Follow these steps to ensure the customs declaration is passed to our shipping carriers:
Log in to your Papello seller dashboard.
Go to Orders (or Stores > View Orders for your connected Etsy store).
Select the specific order destined for the EU.
Locate the Tax Information section on the order details page.
In the tax field, enter Etsy's IOSS number along with the exact Euro order value supplied by Etsy:
IOSS NUMBER - €63.92 PAIDClick Save (or proceed with order submission).
What Happens Next?
Once entered, Papello's carrier integration automatically embeds the IOSS number and order value into the electronic customs manifest attached to the shipping label. The parcel will clear EU customs without delay, and your customer will receive their package with zero additional tax charges.