Defect engineering is regarded as one of the most active projects to regulate the chemical and physical properties of materials, which is expected to improve the photocatalytic performance of the materials. Herein, oxygen vacancies and IO3- doping are introduced into BiOI nanosheets via adding NaH2PO2, which can impact the charge carrier dynamics of BiOI photocatalysts, such as its excitation, separation, trap, and transfer. These oxygen-deficient BiOI nanosheets display excellent photocatalytic activities for degradation of gaseous formaldehyde and methyl orange under visible light irradiation, which are 5 and 3.5 times higher than the BiOI samples, respectively. Moreover, the oxygen-deficient BiOI also have superior cycling stability and can be used for practical application. This work did not only develop an effective strategy for fabricating oxygen vacancies but also offer a deep insight into the role of oxygen vacancies in enhancing photocatalysis.