EU Selling Setup Checklist for UK Businesses 2026

Selling to EU consumers from the UK involves a different set of rules to UK VAT. There’s no registration threshold — your obligations start from your first sale. This checklist covers the UK-specific steps. For the generic steps that apply to all non-EU sellers — IOSS mechanics, customs declarations, €3 duty pricing, monthly filing — see the shared checklist:

EU Selling Setup Checklist — All International Sellers

If you sell to VAT-registered EU businesses (not consumers), see the B2B guide — the rules are completely different.

Before You Start: No Threshold for UK Sellers

Unlike domestic UK selling, there is no turnover threshold for EU obligations:

The EU’s €10,000 cross-border threshold does not apply to UK sellers — it only applies to businesses established inside the EU
The UK’s £90,000 VAT registration threshold is irrelevant to EU obligations
First EU sale = obligations start

You can be a small UK business with zero UK VAT obligations and still have EU IOSS obligations from your first sale to an EU consumer.

Step 1: Decide Your Approach

Route	What it means	Best for
IOSS via EU intermediary	Appoint an EU-established intermediary. Charge destination VAT at checkout. One monthly return.	Most UK B2C sellers. Best customer experience.
DDU (Delivered Duty Unpaid)	Ship without IOSS. Customer pays VAT and handling fees at the door.	Very low volume or testing the market. Expect high return rates.
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 (UK-Specific Requirements)

UK businesses in Great Britain 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.

Northern Ireland exception: NI businesses with XI VAT numbers can register directly through HMRC without a private intermediary. From 1 April 2026, HMRC also accepts NI-based intermediary registrations.

Managed services for UK sellers

Provider	Best for	Approx. cost
EAS Project	Shopify / WooCommerce sellers, small to mid volume. ~2-day setup.	From €9.90/month
Taxually	Amazon FBA, multi-country EU VAT, sellers needing OSS alongside IOSS.	From ~€99/month
Hellotax	Amazon and marketplace sellers. Multi-country VAT if you use EU fulfilment.	Quote-based
SimplyVAT	Mid-size businesses wanting a dedicated account manager and human support.	Quote-based
Avalara	Larger businesses already using Avalara for UK/US tax. ERP integrations.	Quote-based
AVASK	Amazon sellers expanding to EU. Also handles EPR, UK VAT, and customs.	Quote-based
Cross Border VAT	Non-EU specialist. Good for complex structures or high volumes.	Quote-based

Before signing: confirm they are registered in an EU member state, ask which country they will register you in (Ireland is common for UK sellers), and confirm they handle the monthly VAT payment to the tax authority — not just the filing.

For an in-depth comparison: IOSS Intermediary Comparison for UK Sellers

Step 3: Configure VAT at Checkout

Once you have your IOSS number, configure your store to charge the correct destination-country VAT rate — not UK VAT (20%).

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 overview.

EU countries do not zero-rate children’s clothing. If you sell children’s items that are zero-rated in the UK, they are standard-rated across most of the EU. Charging zero or UK rates is a common undercharging mistake.

UK platform setup guides

Shopify VAT Setup — IOSS configuration, tax overrides, test order verification
WooCommerce VAT Setup — plugin setup, EU rate configuration
Etsy — Etsy collects and remits EU VAT as a marketplace. No IOSS needed for Etsy sales.
TikTok Shop — TikTok handles VAT on marketplace orders. No IOSS needed for TikTok Shop sales.
Instagram / Facebook — Do not use native payment links for EU orders. Use Shopify draft orders instead so the IOSS number flows through correctly.
Custom-built store — Use a tax API to calculate destination-country rates dynamically.

Cross-border tax tools

Tool	Best for
Shopify Tax	Built into Shopify. Covers EU VAT calculation when your IOSS number is configured.
Stripe Tax	Custom stores using Stripe. Detects location, applies correct rate.
Quaderno	Digital and physical goods. Invoicing, reporting, Stripe/WooCommerce/Shopify integrations.
EAS Project	Physical goods sellers wanting calculation + IOSS filing in one.

Step 4: Set Up Customs Declarations

Your IOSS number must appear electronically on the customs declaration for every EU-bound parcel.

Confirm your carrier supports electronic IOSS data transmission
UK carriers with IOSS support: Royal Mail Tracked, DHL, DPD, UPS, FedEx
Enter your IOSS number in your carrier’s shipping portal
Include HS commodity code, item description, quantity, and declared value for each parcel
The IOSS number goes in the electronic customs declaration — not handwritten on the address label

Royal Mail note: Royal Mail Tracked International supports IOSS. Royal Mail’s standard untracked international services may not. Confirm with Royal Mail which services transmit the IOSS number electronically before committing to a carrier setup.

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 IOSS registration.

If you sell items under €15, model the impact now. A €3 duty on a £10 item materially changes your EU margin.
The €3 is per item, not per parcel
Decide: absorb it, add it at checkout, or adjust EU pricing
A separate EU-wide handling fee is expected from November 2026. Some EU countries already charge national fees.

Step 6: Set Up Monthly IOSS Reporting

IOSS returns are monthly — not quarterly like UK VAT.

Deadline: last day of the month following the reporting period (January sales → due by 28 February).

Confirm data format your intermediary needs (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 to review data before intermediary files
Confirm your intermediary makes the VAT payment — not just the filing

Step 7: Invoicing and Record-Keeping

Order confirmations must show: your business name, your IOSS VAT number, the date, item description, VAT rate, and total including VAT
Keep records of all IOSS transactions for 10 years (EU legal requirement)
Keep VIES validation records for any B2B EU sales — see B2B guide

Northern Ireland Checklist Additions

If your business is based in Northern Ireland:

Register for IOSS directly through HMRC (no private intermediary needed)
Use your XI VAT number for EU B2B sales — it appears on VIES, unlike GB VAT numbers
For goods, NI→EU sales use intra-EU supply rules — different customs procedures apply
From 1 April 2026: HMRC accepts NI intermediary registrations for non-EU sellers

Common Mistakes by UK Sellers

Not registering for IOSS at all. Customers get surprise fees, refuse delivery, don’t return.
Charging UK VAT (20%) instead of the destination rate. Germany is 19%, Hungary is 27%.
Assuming the £90,000 threshold applies. It does not. First EU sale = EU obligations.
IOSS returns are monthly, not quarterly. Don’t file on the UK quarterly VAT schedule.
Carrier doesn’t transmit IOSS number electronically. Parcel held at border, customer pays twice.
Using Stripe payment links or Instagram direct for EU orders. The IOSS chain breaks. See Instagram VAT Setup.