EU VAT for US Sellers: 2026 complete E-commerce Guide Brenda Varela | usagoldmines.com

Expanding your US brand into Europe is a huge opportunity—but EU VAT for US sellers works very differently to US sales tax. This guide explains VAT for e-commerce in the EU, when you must register, and how to stay compliant while you grow.

VAT for E-commerce in the EU – What US Sellers Need to Know

VAT (Value Added Tax) is the EU’s version of a consumption tax. Unlike US sales tax, VAT is built into the price and applies at almost every step in the supply chain.

For US sellers, this means:

• Almost every B2C sale to an EU consumer is subject to VAT

• The customer’s country usually determines the VAT rate

• Platforms like Amazon or marketplaces may require you to have valid EU VAT numbers

Ignoring EU VAT for US sellers can lead to:

• Parcels blocked or delayed at customs

• Customers charged unexpected import VAT or fees

• Fines and interest from EU tax offices

• Suspensions on marketplaces such as Amazon or eBay

Getting VAT for e-commerce in the EU right is not optional—it’s a core part of selling into Europe.

When EU VAT for US Sellers Becomes Mandatory

US companies often ask: “At what revenue do I need to worry about EU VAT?” The reality is that VAT obligations usually start from your first taxable sale or stock movement, not at a high threshold.

You typically need to deal with EU VAT if you:

• Import goods into the EU in your name (as seller or importer of record)

• Store inventory in the EU, for example in:

  • Amazon FBA warehouses (Germany, France, Poland, Spain, etc.)

  • 3PL (third-party logistics) warehouses

  • Your own EU warehouse

• Sell consistently to EU consumers via your own store or platforms, even if shipping from the US

For non-EU sellers, there is often no meaningful “safe” threshold. As soon as you:

• Hold stock in an EU country, or

• Act as importer of record for EU deliveries

you should assume that VAT registration is needed much earlier than you might expect under US sales-tax thinking.

Core VAT Rules for E-commerce in the EU

To understand EU VAT for US sellers, keep three core principles in mind.

1. Destination-based VAT

For most B2C online sales, VAT is charged where the customer is located, not where your business is based. That’s why US sellers must learn VAT rates for different EU countries when calculating prices and margins.

2. The €10,000 EU distance-selling threshold

For EU-established sellers, there is a single €10,000 EU-wide threshold for cross-border B2C sales of goods and certain digital services. Above that, VAT must be charged based on the customer’s country, and many sellers switch to the One-Stop Shop (OSS).

For US sellers, this threshold is often less helpful:

• If you store goods in the EU, local VAT registration is normally required from day one, regardless of the €10,000 threshold

• If you ship from outside the EU, customs and import VAT rules apply immediately

So the €10,000 rule is mainly useful once you are already in the EU system, not as a way to avoid it entirely.

3. OSS and IOSS – high level

• OSS (One-Stop Shop) simplifies VAT for e-commerce in the EU when you:

  • Have an EU establishment or stock, and

  • Sell to consumers in multiple EU countries

  With OSS, you file one quarterly VAT return in one EU country for all your cross-border B2C EU sales.

• IOSS (Import One-Stop Shop) is a special scheme for low-value imports (≤ €150) shipped from outside the EU directly to EU customers, allowing VAT to be collected at checkout and reported centrally.

  Important: hellotax does not currently offer IOSS services. US sellers who rely heavily on IOSS may need a separate provider for that specific scheme, while still using hellotax for local EU VAT registrations, OSS, and ongoing filings.

Typical Setups for US Sellers – and Their VAT Duties

Let’s look at three common models of VAT for e-commerce in the EU.

Scenario 1: Direct shipping from the US only (no EU stock)

In this setup, all goods are shipped from outside the EU (e.g. your US warehouse) directly to EU consumers, and you do not hold your own inventory in the EU.

What this means in practice:

• Every shipment is an import into the EU – import VAT is due when the goods enter the EU, regardless of your annual turnover.

• For orders over €150, import VAT (and, where applicable, customs duties) are normally charged at the border.

  • If you ship “DDU”/“DAP”, the customer pays VAT and duties on delivery.

  • If you arrange “DDP”, your logistics partner pays VAT/duties on your behalf and recharges them to you.

• For orders up to €150, VAT can be handled via the Import One-Stop Shop (IOSS), but only if:

  • an IOSS number is used (for example by a marketplace, supplier, or specialist IOSS provider), and

  • VAT is collected from the customer at checkout.

In this model you may not immediately need local VAT registration in each EU country, especially if:

• you are not the importer of record, and

• import VAT is settled by the customer, marketplace, supplier or logistics partner.

However, you still need to:

• Understand who is paying import VAT and duties in each flow (you, the customer, or a third party).

• Make sure your checkout clearly reflects the total price the customer will actually pay (with or without VAT at the border).

• Monitor your setup regularly—if you start acting as importer of record or change your logistics model, local VAT registrations may become necessary in specific EU countries.

For further information check our recent article on VAT Compliance for US Dropshippers in the EU.

Scenario 2: Using EU warehouses, Amazon FBA or 3PL

• Goods are imported into the EU and stored in one or more EU countries

• You must register for VAT in every country where stock is held

• Domestic sales (e.g. German warehouse → German customer) go on the local VAT return

• Cross-border EU B2C sales (e.g. German warehouse → French customer) are often reported via OSS once you’re registered

This is where EU VAT for US sellers becomes more complex—but also where hellotax is strongest, because we can manage multiple local VAT numbers, OSS and filings for you.

Scenario 3: Hybrid / multi-channel sales

Many US brands combine:

• Direct shipping from the US

• EU warehouses (for bestsellers)

• Multiple channels (Amazon, Shopify, eBay, etc.)

In this case, you’ll often need:

• One or more EU VAT numbers

• OSS registration for cross-border B2C sales from EU stock

• Clear mapping of which channel uses which warehouse, and how sales are reported

For an official, high-level explanation of how the EU’s OSS (and related schemes) work for cross-border B2C sales, you can also check the European Commission’s VAT One Stop Shop page. It summarises the different OSS schemes, who can use them, and how they fit into the wider e-commerce VAT rules—useful background to compare against your own setup before deciding on registrations.

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Step-by-Step VAT Compliance Plan for US E-commerce Sellers

Here is a simple framework to make VAT for e-commerce in the EU manageable:

Step 1: Map your EU footprint

• Where are your customers (which EU countries)?

• Where is your stock (US only, or also EU warehouses)?

• Which platforms do you sell on (Amazon, Shopify, own site, others)?

Step 2: Identify VAT registrations required

• If you hold stock in any EU country, plan VAT registration there

• If you sell cross-border from EU stock, consider Union OSS in the country of registration

• If you rely on under-€150 imports from the US, consider whether an IOSS provider is needed (outside hellotax’s scope at the moment)

Step 3: Configure your prices and tax settings

• Charge the correct VAT rate for each customer’s country

• Display VAT-inclusive prices where required by platform or local rules

• Set up tax settings correctly in:

  • Shopify or other shop systems

  • Marketplaces such as Amazon, eBay, etc.

Step 4: File VAT returns and keep records

• File local VAT returns in every country where you’re registered

• File OSS returns quarterly if you’re enrolled in OSS

• Keep invoices, import documents and sales reports for at least 10 years in many EU jurisdictions

Step 5: Stay up to date

• Monitor changes such as the EU’s VAT in the Digital Age (ViDA) initiative, which is gradually modernising reporting between 2025 and 2028

• Update VAT numbers and tax settings when you add new warehouses or channels

• Respond quickly to any letters from EU tax offices

Common VAT Mistakes US Sellers Make in Europe

US brands often run into the same pitfalls when tackling EU VAT for US sellers:

• Treating VAT like US sales tax
  VAT is usually included in the price and follows EU rules—not US nexus rules.

• Ignoring warehouse-based obligations
  Storing goods in Germany, Poland or Spain triggers local VAT registration, even if your turnover is still modest.

• Misunderstanding thresholds and OSS
  The €10,000 threshold is not a free pass for non-EU sellers, especially once you have an EU VAT number or stock in multiple countries.

• Poor record-keeping
  Missing invoices or customs documents can lead to denied VAT deductions and painful audits.

The good news: with the right process and support, all of these are avoidable.

Worried you’re missing something with EU VAT? Take a quick look at our article on common VAT mistakes in the EU to see the most frequent errors sellers make—and how to avoid them before you scale.

Book a free consultation

Our VAT experts are happy to help you. Book a free consultation today!

Free consultation

How hellotax Supports EU VAT for US Sellers

hellotax is built specifically around VAT for e-commerce in the EU, with a strong focus on US and other non-EU sellers.

With hellotax, you can:

• Register for VAT in the EU countries where you need numbers (for example, where you store goods or have a fixed establishment)

• Set up and manage OSS registration and filings where your model allows

• Automate VAT filings by connecting Amazon, Shopify, eBay and other channels

• Use a central dashboard to see which returns are due and where

• Receive and manage tax letters from EU authorities in one inbox, with help understanding and responding

• Get guidance from local VAT experts and, in countries where required, work with fiscal representatives

Important note: hellotax does not currently offer IOSS services. If your model depends heavily on IOSS for imports under €150, you may need an additional specialist for that scheme—while still relying on hellotax for local EU VAT registrations, OSS, and ongoing compliance.

Ready to simplify EU VAT for your US brand?
Book a free consultation with hellotax and let our team map out exactly where you must register, what you can handle via OSS, and how to keep compliance under control as you scale.

Key Takeaway – Build VAT Into Your EU Growth Plan

The main message is simple:

If you take EU revenue seriously, you must take EU VAT seriously.

For EU VAT for US sellers, that means:

• Understanding where you create VAT obligations (imports, warehouses, customers)

• Using the right tools—local VAT numbers, OSS, and solid processes—for VAT for e-commerce in the EU

• Avoiding guesswork and “wait and see” approaches that often end in penalties or blocked stock

With a clear plan and a specialist partner like hellotax, VAT becomes a manageable part of your EU expansion—not a reason to stay out of the market.

Thinking about Europe for your US e-commerce brand?
Talk to hellotax before you scale. We’ll help you design a VAT setup that fits your current business model and future growth, fully aligned with EU rules.

Book a free consultation

Our VAT experts are happy to help you. Book a free consultation today!

Free consultation