Ecommerce Finance

EU VAT, IOSS and OSS for UK sellers shipping to European customers.

UK sellers shipping goods to EU consumers face destination-country VAT obligations that changed significantly in 2021. IOSS (Import One Stop Shop) covers B2C consignments into the EU worth up to <a href="https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en">€150</a> through a single registration; the scheme is explained in full at <a href="/vat/ioss-vs-oss">/vat/ioss-vs-oss</a>. OSS covers distance selling from Northern Ireland. Outside these schemes, country-by-country obligations apply. Most UK sellers dealing with EU customers after Brexit need a clear picture of what they owe and where.

The challenges clients face.

UK sellers are treated as third-country sellers for EU VAT

Since 1 January 2021, Great Britain is outside the EU's VAT area. UK sellers are treated as non-EU sellers for EU VAT purposes. The old EU distance-selling threshold model, where you charged UK VAT until you hit a country threshold, no longer applies to GB sellers. Each EU sale to a consumer potentially requires destination-country VAT to be accounted for from the first sale.

IOSS for small consignments requires an EU intermediary

EU IOSS allows sellers to register once and account for destination-country VAT on B2C consignments into the EU of an intrinsic value up to <a href="https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_en">€150</a> (see <a href="/vat/ioss-vs-oss">/vat/ioss-vs-oss</a> for detail). GB sellers cannot register directly; they must use an EU-established fiscal intermediary. The intermediary takes on joint and several liability for the VAT. This is an additional cost and compliance layer that most GB sellers underestimate.

Above the €150 IOSS ceiling, country-by-country obligations apply

Consignments above the €150 IOSS ceiling do not qualify for the scheme. Each EU country has its own import VAT rules for those consignments. Without IOSS or a country-specific registration, the buyer pays import VAT at the border, which affects conversion rates and customer experience for EU sales.

Northern Ireland has different rules under the Windsor Framework

Northern Ireland remains in the EU VAT area for goods. NI sellers can use EU OSS for distance sales to EU consumers above <a href="https://www.gov.uk/guidance/check-how-to-report-and-pay-vat-on-distance-sales-of-goods-from-northern-ireland-to-the-eu">£8,818 (€10,000) a year</a>. NI sellers and GB sellers with NI operations need to understand which rules apply to which sales.

How we help.

EU VAT obligation assessment for your specific selling pattern

We assess your EU customer volumes, consignment values and fulfilment model to identify the correct EU VAT approach: IOSS via an intermediary, OSS for NI sellers, country-by-country registration or a hybrid approach.

IOSS intermediary coordination and registration

We coordinate IOSS registration with an EU-established intermediary for GB sellers with eligible consignment volumes, and advise on the ongoing compliance and reporting obligations.

Ongoing EU VAT compliance support

We support ongoing EU VAT compliance including IOSS return data, advice on country-specific threshold changes and the VAT implications of changes to your EU fulfilment model.

Common questions

Do I need to register for VAT in EU countries to sell to EU customers?

It depends on your consignment values and fulfilment model. For low-value B2C consignments shipped from outside the EU to EU consumers, IOSS registration (via an EU intermediary for GB sellers) allows you to account for destination-country VAT in a single monthly return. IOSS covers consignments up to €150 in intrinsic value; see <a href="/vat/ioss-vs-oss">/vat/ioss-vs-oss</a> for the detail. Above that ceiling, country-specific obligations apply. If you store goods in an EU country, you have a registration obligation there regardless.

What is IOSS and do I need it?

IOSS (Import One Stop Shop) is an EU scheme allowing sellers to account for destination-country VAT on eligible low-value B2C consignments through a single EU registration and monthly return, for consignments up to €150 in intrinsic value; <a href="/vat/ioss-vs-oss">/vat/ioss-vs-oss</a> covers the detail. GB sellers must use an EU-established fiscal intermediary to register. IOSS is optional but simplifies EU compliance for sellers with significant low-value EU customer volumes. Without IOSS, each sale may require separate country treatment.