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E-commerce · VAT · EU Sales

Do I need to register for VAT OSS if I sell to customers in the EU?

By James Fitzpatrick, AAT licensed · Accounting Solution · Last reviewed 29 September 2026 · 3 min read

Usually not for goods sent from the UK. UK sellers cannot use the EU's standard One Stop Shop for those sales. For consignments worth €150 or less you can use the Import One Stop Shop, otherwise import VAT is collected at the EU border. Digital services to EU consumers are a separate case.

The three routes for UK sellers of goods

Your situationHow EU VAT works
Ship from UK, consignment €150 or lessYou can register for the Import One Stop Shop (IOSS), charge the customer's EU VAT at checkout and file a monthly IOSS return. UK sellers generally need an EU-established intermediary to do this.
Ship from UK, consignment over €150IOSS is not available. Import VAT (and any duty) is due when the parcel enters the EU, usually paid by the customer unless you ship delivered duty paid.
Stock held in an EU warehouseYou register for VAT in the country where the stock sits, and can then use the non-Union OSS to report sales to consumers in other EU states.

None of these change your UK position. Exports of goods from the UK to non-UK customers are normally zero-rated for UK VAT if you keep proof that the goods left. That proof, such as courier or postal records, needs to be kept with the sale.

Worked example. A Brighton seller ships a £100 print to a customer in Germany. Using IOSS, she charges the German rate of 19% at checkout, so the customer pays £119 in total, and the parcel clears customs without a border charge. The 19% is reported on her IOSS return. Without IOSS, the German customer would pay VAT and a handling fee to the courier on delivery, which is the usual cause of refused parcels.

What the customer sees

The biggest practical risk is not the tax but the customer experience. Unexpected charges on delivery lead to refused parcels, bad reviews and refund requests. Many marketplaces and shipping platforms have built-in options for delivered-duty-paid shipping, so check what your platform offers before setting up your own registration.

Rules in the EU and the treatment of low-value goods are changing over time, so confirm the current position with the EU's official OSS guidance before you start selling into a country. For your UK side, see import VAT and customs duty and VAT across Amazon and Shopify.

Sources: European Commission: VAT One Stop Shop, GOV.UK: VAT imports, acquisitions and purchases from abroad.

Related reading

E-commerce AccountingImport VAT and customs dutyVAT on digital productsVAT Returns Service

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Frequently Asked Questions

Do I need to register for VAT OSS if I sell to customers in the EU?

Usually not for goods sent from the UK. UK sellers cannot use the EU's standard One Stop Shop for those sales. For consignments worth €150 or less you can use the Import One Stop Shop, otherwise import VAT is collected at the EU border. Digital services to EU consumers are a separate case.

Can a UK business use the EU One Stop Shop?

Not the Union scheme for goods sent from the UK. UK sellers can use IOSS for low-value consignments, and the non-Union OSS for digital services or for goods already held in EU stock.

What is the IOSS limit?

The Import One Stop Shop applies to consignments worth €150 or less. Above that, import VAT and any duty are due at the EU border in the normal way.

Do I charge UK VAT on exports to the EU?

Normally not. Goods exported from the UK are generally zero-rated, provided you keep evidence that they left the UK. The EU VAT is dealt with separately, under IOSS or at import.