Selling to EU Consumers from the UK 2026 — IOSS, VAT & Customs

This guide covers what is specific to UK sellers when selling physical goods to individual EU consumers. For the full IOSS mechanics — how IOSS works, shipping labels, monthly returns, and DDP vs DAP for orders over €150 — see the shared guide: Selling to EU Consumers — IOSS, VAT & Customs.

If you are selling to VAT-registered businesses, see the B2B guide instead.

UK Sellers Cannot Register for IOSS Directly

This is the key difference between UK sellers and some other non-EU sellers. UK businesses based in Great Britain (England, Scotland, Wales) cannot register for IOSS directly. You must appoint an EU-established intermediary who registers on your behalf, files your monthly returns, and is jointly and severally liable for any VAT owed — which is why they charge a monthly fee.

This requirement exists because IOSS registration is administered through EU member state tax portals, and non-EU businesses must have a local representative who is subject to EU enforcement.

Typical intermediary costs range from €40–300 per month depending on the provider and your transaction volume. For a detailed comparison of providers, see the IOSS Intermediary Comparison.

For the full technical guide on how IOSS works, what VAT rate to charge, customs declarations, and monthly returns, see Selling to EU Consumers.

Northern Ireland Exception

If your business is based in Northern Ireland, you have a significantly easier path:

You can register for IOSS directly through HMRC — no EU-established intermediary required
Northern Ireland businesses have XI-prefix VAT numbers (not GB-prefix) and are treated as inside the EU VAT system for goods
From 1 April 2026, HMRC also accepts NI-based intermediary registrations acting on behalf of other non-EU sellers

This is one of the most practical advantages of the Windsor Framework for NI-based ecommerce businesses. If you are in Northern Ireland, contact HMRC’s VAT helpline or Revenue & Customs Online Services to initiate your IOSS registration — the intermediary cost and search process that applies to GB sellers does not apply to you.

The UK’s £90,000 Threshold Does Not Apply

This is a very common mistake among UK sellers. The UK’s £90,000 VAT registration threshold is a domestic UK rule. EU obligations are entirely separate:

There is no minimum threshold for UK sellers selling to EU consumers
Your first EU sale creates an EU VAT obligation regardless of your UK VAT status
You can be unregistered for UK VAT (below £90,000) and still required to register for IOSS
You can be registered for UK VAT and your UK registration provides no relief from EU IOSS obligations — they are different systems

A UK seller doing £50,000 in UK sales and €5,000 in EU consumer sales has EU IOSS obligations even with no UK VAT registration.

What VAT Rate to Charge at Checkout

You charge the destination country’s VAT rate, not UK VAT (20%). When a French customer buys from you, you charge French VAT (20%). For a German customer, 19%. For a Hungarian customer, 27%.

Your e-commerce platform (Shopify, WooCommerce) handles this automatically once configured with your IOSS number. See Shopify VAT Setup and WooCommerce VAT Setup for step-by-step UK platform configuration.

You must show the VAT amount on the order confirmation. The customer needs to see what they paid and how much was VAT.

Unlike UK domestic sales, most EU countries do not zero-rate children’s clothing. A children’s hat that is zero-rated in the UK is standard-rated at 19% in Germany and 20% in France. This is a common undercharging error for UK sellers who assume EU rates mirror UK reduced/zero rates.

For the full rate table and details on what IOSS covers, see the EU consumers guide.

Platform Setup for UK Sellers

Shopify

Go to Settings → Taxes and duties
Add your IOSS number under EU tax settings
Shopify automatically calculates destination-country VAT for EU addresses
Verify by placing a test order with a French shipping address — you should see 20% TVA applied, not UK 20% VAT
See the full Shopify VAT Setup guide for UK-specific configuration

WooCommerce

Install a VAT compliance plugin that supports IOSS (EU VAT Assistant, WooCommerce EU VAT Number)
Enter your IOSS number in the plugin settings
Configure EU VAT rates per country using the plugin’s rate database
Test with addresses in multiple EU countries — Germany should show 19%, Hungary 27%
See the full WooCommerce VAT Setup guide

Carriers from the UK

Carriers you can use from the UK that support IOSS electronic data transmission:

Royal Mail — Royal Mail Tracked International supports IOSS transmission
DHL — Full IOSS support including Express and Parcel services
DPD — IOSS supported on international services
UPS and FedEx — both support IOSS electronic transmission

If your carrier does not transmit the IOSS number electronically, your parcels are treated as non-IOSS and the customer is charged VAT on delivery. This is the most common operational failure. Verify before you ship.

Instagram and Stripe Payment Links Don’t Work for EU Sales

If you take orders via Instagram and send customers a Stripe payment link, this does not work for EU B2C sales. Stripe payment links:

Do not know the customer’s country at checkout (so you cannot charge the correct EU destination VAT rate)
Cannot capture EU VAT numbers for B2B reverse charge
Do not include your IOSS number on customs declarations

For EU orders taken through social media, create a Shopify draft order and send that as the payment link instead. The IOSS number must flow from the checkout through to the carrier and the customs declaration — Stripe payment links break this chain.

This is a UK-specific practical issue because Instagram direct selling with Stripe links is particularly common among UK fashion and handmade goods sellers.

Common UK-Specific Mistakes

Assuming you can register for IOSS directly (if GB-based). You cannot — you need an EU intermediary.
Assuming the UK’s £90,000 threshold means you have no EU obligations. EU and UK obligations are independent. First EU sale = EU obligations start.
Charging UK VAT (20%) instead of destination country rates. Germany is 19%, Hungary is 27%, Luxembourg is 17%. Getting this wrong means you have collected the wrong amount.
IOSS returns are monthly, not quarterly. Don’t file on the UK quarterly VAT schedule.
Carrier doesn’t transmit IOSS number electronically. The parcel gets stuck, the customer pays VAT twice.
Using Stripe payment links for EU social media orders. The IOSS chain breaks and VAT is incorrectly handled.