Selling to EU Customers 2026 — VAT, IOSS & Compliance
If your business is based outside the EU and you sell to EU customers, you are subject to EU VAT rules from your very first sale. There is no minimum turnover threshold, no grace period, and no small-seller exemption for non-EU businesses.
This page gives you the framework. For detailed obligations, pick the guide that matches your situation:
- Selling to EU Consumers (B2C) — IOSS registration, charging destination-country VAT at checkout, monthly returns, and the €150 threshold.
- Non-Union OSS for Digital Services — How non-EU SaaS and digital businesses handle EU VAT with a single registration.
- Selling to EU Businesses (B2B) — Reverse charge mechanism, VIES validation, zero-VAT invoicing.
- EU Selling Setup Checklist — Step-by-step: IOSS registration, store configuration, customs declarations, monthly reporting, and the July 2026 duty changes.
If you sell to both consumers and businesses, read both guides — the processes are completely separate and the rules do not overlap.
The Two Factors That Determine Your Obligations
Section titled “The Two Factors That Determine Your Obligations”Everything depends on two questions:
- Is your buyer a consumer (B2C) or a business (B2B)? — This determines whether you use IOSS or the reverse charge mechanism.
- Is the consignment value above or below €150? — For B2C sales of physical goods, this determines whether IOSS applies or you fall back to standard import procedures.
No Threshold for Non-EU Sellers
Section titled “No Threshold for Non-EU Sellers”This catches sellers out. The EU has a €10,000 cross-border threshold, but that applies exclusively to EU-based sellers shipping between EU member states. As a non-EU seller, there is no minimum. You must comply with EU VAT rules from your very first EU sale.
How the Schemes Fit Together
Section titled “How the Schemes Fit Together”| Situation | Scheme | What it means |
|---|---|---|
| B2C goods under €150, shipped from outside EU | IOSS | Register via intermediary, charge destination VAT at checkout, file monthly |
| B2C digital services (SaaS, ebooks, courses) | Non-Union OSS | Register in one EU member state, file quarterly |
| B2C goods over €150 | No scheme | Use DDP courier or customer pays VAT on delivery |
| B2B sales (VAT-registered business buyer) | Reverse Charge | Zero-rate the invoice, buyer self-accounts for VAT |
The €3 Customs Duty — From 1 July 2026
Section titled “The €3 Customs Duty — From 1 July 2026”Until 30 June 2026, goods under €150 entering the EU are exempt from customs duty. From 1 July 2026, that exemption ends.
Every item shipped to the EU in a consignment under €150 will be subject to a fixed €3 customs duty per item. This applies even if you are IOSS-registered. The duty is per item, not per parcel — a parcel with three items attracts €9.
Your options:
- Absorb it — protect your prices, accept the margin impact
- Pass it on — add it as a customs fee at checkout
- Raise prices — adjust EU pricing to cover it
For items priced under €10–15, €3 per item is a material cost. This will reshape the economics of selling low-value goods to the EU from outside.
A Union-wide customs handling fee (separate from the €3 duty) is also expected from November 2026. Several EU countries have already introduced national fees.
VAT Rates by EU Country
Section titled “VAT Rates by EU Country”You must charge the destination country’s standard VAT rate on most goods. Current rates for all 27 EU member states:
| Country | Standard Rate | Reduced Rates | Country Guide |
|---|---|---|---|
| Austria | 20% | 10%, 13% | Selling to Austria |
| Belgium | 21% | 6%, 12% | Selling to Belgium |
| Bulgaria | 20% | 9% | Selling to Bulgaria |
| Croatia | 25% | 5%, 13% | Selling to Croatia |
| Cyprus | 19% | 5%, 9% | Selling to Cyprus |
| Czech Republic | 21% | 12% | Selling to Czech Republic |
| Denmark | 25% | — | Selling to Denmark |
| Estonia | 24% | 9%, 13% | Selling to Estonia |
| Finland | 25.5% | 10%, 14% | Selling to Finland |
| France | 20% | 5.5%, 10%, 2.1% | Selling to France |
| Germany | 19% | 7% | Selling to Germany |
| Greece | 24% | 6%, 13% | Selling to Greece |
| Hungary | 27% | 5%, 18% | Selling to Hungary |
| Ireland | 23% | 0%, 9%, 13.5% | Selling to Ireland |
| Italy | 22% | 4%, 5%, 10% | Selling to Italy |
| Latvia | 21% | 5%, 12% | Selling to Latvia |
| Lithuania | 21% | 5%, 12% | Selling to Lithuania |
| Luxembourg | 17% | 3%, 8%, 14% | Selling to Luxembourg |
| Malta | 18% | 5%, 7% | Selling to Malta |
| Netherlands | 21% | 9% | Selling to Netherlands |
| Poland | 23% | 5%, 8% | Selling to Poland |
| Portugal | 23% | 6%, 13% | Selling to Portugal |
| Romania | 21% | 11% | Selling to Romania |
| Slovakia | 23% | 5%, 10% | Selling to Slovakia |
| Slovenia | 22% | 5%, 9.5% | Selling to Slovenia |
| Spain | 21% | 4%, 10% | Selling to Spain |
| Sweden | 25% | 6%, 12% | Selling to Sweden |
These are standard rates for general goods. Many EU countries apply reduced rates to specific product categories — books, food, medical supplies. The categories and rates differ by country. Check individual country guides for product-specific rates.
Rates last verified: May 2026. Always verify against the European Commission’s rate database before filing.
Work out the VAT on a sale to any EU country, at the rate for what you sell:
VAT · France · Standard Tangible Goods
£20.00VAT to add to the price
20% VAT
- Price excluding VAT£100.00
- France VAT20%£20.00≈ €23.99 to file, at the ECB rate 1 EUR = 0.8336 GBP
- Total including VAT£120.00
Selling to customers in France? Get VAT right on every order.
GoodVat charges the right rate for each product and country at checkout, registers you where you need to be and files the returns.
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Rates and rules from GoodVat’s tax engine, kept current as they change. A calculation tool, not tax advice. Open the full VAT calculator.
Minimum Compliance Checklist
Section titled “Minimum Compliance Checklist”The minimum setup for a non-EU seller regularly shipping B2C goods to the EU:
- IOSS registration via an EU intermediary — budget €10–300/month depending on volume (intermediary comparison)
- Store configured for destination-country VAT — correct rates at checkout per country
- IOSS-aware shipping carrier — must transmit the IOSS number electronically to EU customs
- Monthly IOSS returns — filed by your intermediary
- B2B reverse charge process — VIES validation and compliant invoicing for business customers (B2B guide)
- Budget for the €3 customs duty from July 2026
Related Guides
Section titled “Related Guides”- EU Selling Setup Checklist
- IOSS Intermediary Comparison
- Selling to EU Consumers
- Selling to EU Businesses
Selling from a Specific Country?
Section titled “Selling from a Specific Country?”The framework above applies to any seller based outside the EU. Some countries have additional wrinkles:
- United Kingdom — Post-Brexit, sellers based in Great Britain cannot register for IOSS directly and must use an EU-established intermediary. Northern Ireland has different rules under the Windsor Framework. See the UK seller’s guide to selling to the EU.
- United States — There is no EU equivalent of economic nexus for US sellers. See the international VAT guides for US sellers, starting with Germany for physical goods and Germany for SaaS.
- Australia — guide coming soon