Can my small EU business combine IOSS with the small enterprise VAT exemption from 2027?

No, you will not be able to combine them. According to the tracker, from 1 January 2027, the IOSS scheme cannot be combined with the special VAT exemption scheme for small enterprises. This is confirmed in the European Commission’s VAT Explanatory Notes. If you are an EU-established small business using the exemption, you will need to choose between using that domestic exemption or using IOSS for your distance sales of imported goods from outside the EU. You should consult a tax advisor to determine the best approach for your business.

Reviewed by our editors on 30 Oct 2026. General information, not legal or tax advice. See our EU rule tracker.