EU Selling Setup Checklist 2026 — International Sellers

Selling to EU consumers from outside the EU involves a different set of rules from domestic trade. There is no registration threshold — obligations start from your first sale. This checklist walks through every step in order, from confirming IOSS applies to you through to filing your first monthly return.

If you sell to VAT-registered EU businesses rather than consumers, see the B2B guide — the rules are completely different.

Before You Start: Does IOSS Apply to You?

IOSS covers B2C sales of physical goods shipped from outside the EU where the consignment value is €150 or less. Tick all three to use it:

You are selling to a consumer (not a VAT-registered business)
The goods are shipped from outside the EU directly to an EU address
The intrinsic value of each consignment is €150 or less (goods value only — not shipping or insurance)

If your goods regularly exceed €150, IOSS will not cover those orders. See Sales over €150 below.

There is no minimum turnover threshold. First EU sale = obligations start.

Step 1: Decide Your Approach

Choose one route before doing anything else.

Route	What it means	Best for
IOSS via intermediary	Register for IOSS through an EU-established intermediary. Charge destination VAT at checkout. One monthly return.	Most non-EU B2C sellers. Best customer experience.
DDU (Delivered Duty Unpaid)	Ship without IOSS. Customer pays VAT and handling fees on delivery.	Very low volume, testing the market, or low-value goods where IOSS cost exceeds benefit.
DDP courier (over €150 orders)	Use a courier that pre-clears VAT and duties and bills you.	High-value orders above the €150 threshold.

IOSS is optional in name, essential in practice. Without it, EU customers receive surprise bills at the door. Return rates go up, reviews go down.

Step 2: Appoint an IOSS Intermediary

Non-EU sellers cannot register for IOSS directly. You must appoint an EU-established intermediary who registers on your behalf, files your monthly returns, and is jointly liable for any VAT owed.

For a detailed comparison of providers including pricing, platform integrations, and contract terms, see the IOSS Intermediary Comparison.

Managed services (recommended for most sellers)

These providers handle registration, monthly filing, and VAT payments. You supply the sales data.

Provider	Best for	Approx. cost
EAS Project	Shopify / WooCommerce sellers, small to mid volume. Fast setup (~2 days), platform integrations.	From €9.90/month
SimplyVAT	Sellers wanting a dedicated account manager. Human-led support.	Quote-based
AVASK	Amazon sellers expanding to EU. Also handles EPR and customs.	Quote-based
Cross Border VAT	Non-EU specialist. Complex structures or high volumes.	Quote-based
Avalara	Larger businesses already using Avalara for domestic tax. ERP integrations.	Quote-based
Taxually	Amazon FBA, multi-country EU VAT, sellers who also need OSS.	From ~€99/month

Before signing: confirm the intermediary is registered in an EU member state, ask which country they will register you in, and confirm they handle the monthly VAT payment to the tax authority — not just the filing.

DIY registration (advanced)

If you have an EU-established legal entity (a subsidiary, a branch, or a local company), you can appoint that entity as your intermediary. This is uncommon for most non-EU sellers and only worth it at very high volumes.

Step 3: Configure VAT at Checkout

Once you have your IOSS number, update your store to charge the correct destination-country VAT rate at checkout. You are charging the buyer’s local rate — not your own country’s VAT rate.

Country	Standard VAT rate
Germany	19%
France	20%
Spain	21%
Netherlands	21%
Italy	22%
Hungary	27%
Luxembourg	17%

For the full rate table, see the EU VAT rates guide.

Many EU countries apply reduced rates to specific categories (food, books, children’s items, medical supplies). These vary by country. Check country-specific guides for product-specific rates.

Platform setup

Shopify — Go to Settings → Taxes and duties. Enter your IOSS number under EU tax settings. Shopify automatically applies destination-country rates for EU shipping addresses.
WooCommerce — Install an IOSS-compatible VAT plugin (EU VAT Assistant or similar). Enter your IOSS number and configure EU country rates.
Marketplaces (Etsy, TikTok Shop, Amazon) — These platforms collect and remit EU VAT on your behalf as deemed suppliers. You do not need IOSS for sales through these marketplaces. Sales still count toward your overall volume for compliance monitoring.
Custom-built store — Use a tax API (Stripe Tax, Quaderno, Avalara AvaTax) to calculate destination-country rates dynamically.

Step 4: Set Up Customs Declarations

Your IOSS number must appear on the customs declaration for every EU-bound parcel. This tells EU customs that VAT has already been paid and triggers smooth clearance.

Confirm your carrier supports electronic IOSS data transmission — a handwritten number alone is not sufficient
Carriers that support IOSS: DHL, DPD, UPS, FedEx, and most national postal services with tracked international products
Enter your IOSS number in your carrier’s shipping portal or API
For each parcel: include HS commodity code, item description, quantity, and declared value
The IOSS number goes in the customs declaration data, not written on the address label

If your carrier does not transmit the IOSS number electronically, the parcel is treated as non-IOSS and the customer is charged VAT on delivery. Verify this before you ship.

Step 5: Price for the €3 Customs Duty (From 1 July 2026)

From 1 July 2026, every item shipped to the EU under €150 attracts a fixed €3 customs duty per item — regardless of whether you are IOSS-registered.

If you sell items under €15, model the impact now. A €3 duty on a €10 item is 30% of the price.
The €3 is per item, not per parcel. Three items in one parcel = €9 in duty.
Decide whether to absorb it, add it as a separate charge at checkout, or adjust EU pricing.
A separate EU-wide handling fee is expected from November 2026. Several countries already charge national fees.

Additional data requirements also come into force from July 2026. For each item in a shipment you will need product identifiers — HS codes or similar. Start building this into your product catalogue now.

Step 6: Set Up Monthly IOSS Reporting

IOSS returns are monthly, not quarterly. Your intermediary files the return, but you are responsible for providing clean, accurate sales data.

Filing deadline: the last day of the month following the reporting period.

January sales → due by 28 February
March sales → due by 30 April
Confirm with your intermediary what format they need (CSV, API, platform export)
Set up your store to export EU sales by country with VAT amounts
Set a calendar reminder for the 20th of each month — 10 days before the end-of-month deadline to review data before your intermediary files
Confirm your intermediary makes the VAT payment to the member state as part of their service

Miss multiple deadlines and your IOSS registration can be cancelled.

Step 7: Handle Sales Over €150

IOSS only covers consignments with an intrinsic value of €150 or less. For higher-value orders:

DDP — Delivered Duty Paid: use a carrier that pre-clears VAT and duties and bills you. The customer pays nothing on delivery. Better customer experience, higher shipping cost.

DAP — Delivered at Place: the customer pays import VAT, customs duties, and the carrier’s handling fee on arrival. Cheaper for you, worse for the customer.

If you regularly ship high-value items to a single EU country, registering for VAT in that country directly may be worth modelling — but that is a larger compliance step.

Step 8: Invoicing and Record-Keeping

Order confirmations must show: your business name, your IOSS VAT number, the date, item description, VAT rate applied, and total including VAT
Keep records of all IOSS transactions for 10 years — this is an EU legal requirement
Keep VIES validation records if you also sell B2B (see B2B guide)
Your intermediary should provide monthly statements of what was filed and paid — keep these

Quick Summary

Step	What	When
1	Decide: IOSS, DDU, or DDP	Before first sale
2	Appoint an IOSS intermediary and receive your IOSS number	1–5 business days via managed service
3	Configure destination VAT in your store	Before going live to EU
4	Set up carrier for electronic IOSS transmission	Before first shipment
5	Model and price the €3 per-item duty	Before 1 July 2026
6	Set up monthly data export for IOSS returns	First month of sales
7	Decide DDP vs DAP for orders over €150	Before selling high-value items
8	Configure invoicing and start 10-year record-keeping	From first sale

Common Mistakes

Not registering for IOSS at all. Customers get surprise bills at the door. Return rates spike.
Charging your home country’s VAT rate instead of the destination rate. Germany is 19%, Hungary is 27%.
Filing IOSS returns quarterly. They are monthly. Filing on a quarterly schedule means you are missing deadlines.
Carrier not transmitting IOSS number electronically. The number on the label alone is not sufficient. The customer gets charged VAT twice.
Not budgeting for the €3 customs duty from July 2026. It applies per item, not per parcel.
Assuming marketplace sales need separate IOSS. Etsy, Amazon, and TikTok Shop handle their own VAT — IOSS is only for your own store.

Selling from a Specific Country?

The checklist above applies to any seller based outside the EU. Some countries have additional steps:

United Kingdom — Sellers in Great Britain cannot register for IOSS directly. Northern Ireland has different rules. There are also UK-specific platform guides and carrier considerations (Royal Mail). See the UK EU Selling Setup Checklist.
United States — guide coming soon
Australia — guide coming soon