Selling Goods into the EU

Your Most Common VAT Questions Answered

Expanding into EU markets can be overwhelming, with each country labelled by a different VAT regime, import rule, or acronym, it gets extremely confusing.

Since Brexit, UK businesses regularly ask us the same questions:

Do I need to register for VAT in Europe?

What is the IOSS

Will OSS apply to me?

Why does every country seem to have a different VAT rate?

This Q&A guide breaks down the main issues to consider when a UK business starts selling goods into the EU.

Q&A Guide

Q

When I export goods from the UK, are my sales automatically zero-rated?

A

Not automatically. The supply is normally zero-rated, but only if you hold proof that the goods physically left the UK.
You must keep:

• A valid EORI number
• Commercial documents describing the goods
• Transport documents showing the goods left the UK
• Records for six years

Exporters have three months to collect all evidence. If the proof isn’t gathered in time, the sale becomes standard-rated for UK VAT purposes.

Top tip: Treat export evidence like CIS or AML documentation, monitored proactively, not after the fact.

Q

What is the “Importer of Record” and why does it matter?

A

This is the single most important question in EU VAT planning. The importer of record is the party responsible for bringing the goods into the EU.

If the EU customer is the importer:

• You generally don’t need an EU VAT registration
• They pay all import VAT, duty and fees
• Your involvement ends once the export is complete

If your business is the importer:

• You will likely need a local VAT registration
• You pay import VAT (recoverable locally)
• You must charge local VAT on onward sales
• You must submit local VAT returns
• No threshold applies to non-EU businesses

Top tip: Unless there’s a strong commercial reason, avoid becoming the importer.

Q

 What if my business is based in Northern Ireland?

A

Northern Ireland follows EU VAT rules for goods, unlike the rest of the UK.
This means NI businesses may need to:

• Apply EU dispatch/acquisition rules
• File EC Sales Lists
• Consider whether OSS applies

Always check NI-specific guidance; NI sits between UK and EU systems.

Q

What’s the difference between IOSS and OSS?

A

IOSS – Import One Stop Shop

Relevant when:

• Goods are sold B2C
• Shipped directly into the EU
• Value per consignment is under €150/£135

How it works:

• You charge EU VAT at checkout
• No import VAT is due on entry
• You file one monthly IOSS return for all EU countries
• Avoids multiple VAT registrations
• Ideal for low-value online sales

OSS – One Stop Shop

OSS mainly applies to EU-to-EU movements and services.
For UK exporters of goods, OSS is usually not relevant.

Q

Do different VAT rates across the EU affect my pricing?

A

Yes, significantly. Each EU country sets its own VAT rate.

Examples:

• Sweden: 25%
• Belgium: 21%
• Ireland: 23%
• Luxembourg: 17%

If you charge one EU-wide retail price, your margins will change country by country.

Top tip: Adjust pricing or margin models, especially when using IOSS.

Q

How do VAT rules change when selling through online marketplaces (Amazon, eBay, Etsy, Vinted)?

A

If goods are sold through a platform and each consignment is under €150:

• The platform accounts for the VAT
• You make a zero-rated supply to the platform
• You do not need an EU VAT registration for that sale

Exception:
If you store goods in an EU warehouse (e.g., Amazon FBA in Germany, Poland, Czech Republic):

• You must register for VAT in the storage country, regardless of value or customer type.

Q

What are the key principles UK businesses must understand before selling goods to the EU?

A

• Zero-rating requires solid export evidence
• The importer of record determines EU VAT obligations
• IOSS is often the best solution for sub-€150 B2C orders
• EU VAT rates vary, plan pricing accordingly
• Storing goods in the EU triggers an immediate VAT registration
• NI follows different EU-aligned rules
• OSS and IOSS are entirely different schemes

Conclusion

Selling goods into the EU is viable, with the right structure in place. Most issues arise when UK businesses assume EU VAT works like UK VAT, or that import taxes will be handled by someone else. Clarity on export evidence, the importer of record, VAT rates, and the benefits of IOSS can prevent expensive mistakes and reduce firefighting later.

Next Steps

If you or your client have any VAT related queries please get in touch.