Selling in the EU from outside the EU: VAT, EORI and stock

Brands from the UK, Switzerland, Norway, North America and Asia all ask us the same questions before they sell in the EU. Do we need an EU VAT number? What is an EORI? Who is the importer? Where should the stock go? This guide answers them in order, from the first parcel to your first EU warehouse.

Three ways to sell into the EU

Most non-EU brands start with one of three set-ups. The choice decides which VAT and customs rules apply to you.

Shipping from home is the simplest way to test demand. Once you have regular EU orders, moving stock into one EU warehouse is usually cheaper and faster. More warehouses only pay off when one market is large enough to justify its own VAT registration.

EORI: your customs ID in the EU

An EORI (Economic Operators Registration and Identification) number identifies your business in all EU customs procedures. You need one to import goods into the EU in your own name.

• Where to apply: a non-EU business gets its EORI from the customs authority of the EU country where it first makes a customs declaration. In practice, that is usually the country of your first warehouse or your main port of entry.
• One number for the whole EU: an EORI issued by any EU country is valid in all of them.
• Your home number does not count: a UK EORI starting with GB is not valid for EU customs declarations, so UK businesses need a separate EU EORI.

Importer of record: who makes the declaration

The importer of record is the party that declares the goods to customs and is responsible for duty and import VAT. Under the EU’s Union Customs Code, the declarant normally has to be established in the EU. A company outside the EU therefore usually works in one of three ways:

1. Indirect customs representative. A customs broker or forwarder declares the goods in its own name on your behalf and shares liability for the duty. This is the most common route for non-EU brands.
2. EU company. You set up an EU entity that imports the goods itself (see below).
3. Your customer or marketplace. For parcels sent from outside the EU, the IOSS holder or the marketplace may declare them. Without IOSS, the customer often ends up paying VAT and a handling fee on delivery, which leads to refused parcels.

Agree incoterms with your supplier or forwarder. If your factory ships DDP (delivered duty paid), the importer of record is on their side, so check whose name and EORI appear on the declaration. Accurate HS codes and invoices avoid delays and overpaid duty. Waredock arranges customs clearance for bulk shipments into its warehouses.

Import VAT can be reclaimed once you are VAT-registered in the country of import. Several countries let you account for it on your VAT return instead of paying it at the border, for example France’s automatic reverse charge since 2022 and the Netherlands’ Article 23 licence. That can make a real difference to cash flow.

VAT for non-EU sellers

EU VAT for online sales is charged at the rate of the customer’s country. Two points catch non-EU sellers out:

• No €10,000 threshold. The €10,000 limit that lets small EU sellers charge their home VAT applies only to businesses established in the EU. A non-EU seller charges the customer’s VAT from the first sale.
• Marketplaces may handle it. When a non-EU seller sells goods already stored in the EU through a marketplace, the marketplace is treated as the supplier for VAT and collects it. Selling through your own Shopify store, you are responsible yourself.

Parcels up to €150 sent from outside the EU

Register for IOSS, usually through an EU-based intermediary, and charge VAT at checkout. The parcel then clears customs without the customer paying again. Since 1 July 2026 these parcels also pay a €3 customs duty per item, whatever VAT scheme you use. The full scheme is explained in EU VAT for eCommerce: OSS and IOSS explained.

Parcels over €150 sent from outside the EU

IOSS does not apply. Duty and import VAT are due on each parcel at import. Unless you ship DDP and pay them, your customer is asked to pay before delivery.

Stock held in an EU warehouse

Sales from EU stock are no longer imports. You register for VAT in the country where the stock is, charge local VAT on sales in that country, and report sales to other EU countries through the One-Stop Shop (OSS), registered in the country you ship from. Depending on the country and on where your business is based, you may also need a fiscal representative.

Where to keep your stock: each country means another VAT registration

This is the point many brands miss when they compare fulfilment quotes. Storing your own goods in an EU country is a taxable event there. If you keep stock in a second country, for example a German warehouse for faster delivery in Germany, moving goods into it counts as a transfer of your own goods and local sales become domestic sales. Both usually require a second VAT registration, with its own returns and bookkeeping. OSS does not cover it today.

This applies to EU companies too, not only non-EU ones. The EU’s VAT in the Digital Age reform extends OSS to transfers of your own goods from 1 July 2028, which should reduce the number of registrations. Until then, plan for one per stock country.

For most brands starting in Europe, one EU hub is the right first step. When choosing it, weigh:

• Where your customers are: carriers deliver from the Netherlands or Germany to most of Western Europe in one to three days, and Poland is a cost-effective base for Germany and Central Europe.
• Your company’s home country: if you set up an EU company, holding stock in the same country keeps VAT simpler.
• Your port of entry: goods from Asia often arrive through Rotterdam, Hamburg or Gdańsk, so a warehouse near the port saves a transport leg.
• Your largest market: add a second warehouse only when one country’s volume justifies its own VAT registration.

See our guide to multi-warehousing and all Waredock warehouse locations.

Product rules to sort out before your first sale

Customs and VAT are only part of it. Many products need an EU-based responsible party and registrations before they can be sold to consumers.

Notes for UK sellers

• Zero tariffs only for UK-origin goods. The EU–UK Trade and Cooperation Agreement removes duty only on goods that meet its rules of origin. Goods made in China or Korea and sent from a UK warehouse into the EU pay normal EU duty.
• EU returns are UK imports. Returning EU orders to a UK warehouse adds customs paperwork and cost. Handling returns in an EU warehouse avoids it.
• You need a separate EU EORI, as your GB number isn’t valid in the EU.

Should you set up an EU company?

Some non-EU brands set up an EU company, for example an Estonian OÜ through e-Residency or a Dutch BV. The EU company can act as importer, use the €10,000 threshold and OSS in its home country, and serve as the responsible party for product rules. It also adds accounts, filings and possibly corporate tax questions: where a company is taxed can depend on where it is actually managed, not only where it is registered. It is often worth it once EU sales are steady. Get advice from a tax adviser in both countries first. If you choose Estonia, we can hold stock at our Estonia fulfilment centre and ship EU-wide from there.

Checklist before your first EU shipment

1. Decide on your set-up: parcels from home, one EU hub or several.
2. Get an EU EORI number in your first country of import.
3. Appoint a customs representative, or set up an EU company that can import.
4. Register for VAT where your stock will be, and for OSS or IOSS as needed.
5. Appoint an EU responsible person and complete product registrations (GPSR, cosmetics, supplements, EPR).
6. Check HS codes, rules of origin and the incoterm with your supplier.
7. Show VAT-inclusive prices for each country at checkout.
8. Plan returns inside the EU.

Tax and customs rules depend on your situation and change often. Use this guide as an overview and confirm the details with a tax adviser or customs broker.

Related: EU VAT for eCommerce: OSS and IOSS explained · The €3 EU parcel duty · Shipping from China to Europe · Bonded warehouse

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