EU VAT E-Commerce Package

Intra-EU distance sales above a combined EUR 10,000 a year are taxed at the customer country's VAT rate and reported through the OSS. The EUR 22 import VAT exemption was abolished; imports up to EUR 150 can use the IOSS, with VAT charged at checkout. Marketplaces facilitating imports up to EUR 150, or sales by non-EU sellers from EU stock, are deemed suppliers liable for the VAT. Since July 1, 2026, those parcels also pay a flat EUR 3 customs duty per tariff classification.

The package decides who pays EU VAT on an online order and when, which shapes checkout, pricing and fulfillment design. A US brand shipping small orders from the US can register for IOSS so customers pay VAT at checkout and parcels clear without fees at the door. If the brand instead stocks an EU 3PL warehouse in Germany and ships to France, it must charge French VAT through OSS once over the threshold. With the EUR 3 duty and the 2028 customs reform, accurate IOSS data matters more.

• Delivered Duty PaidDDPIncoterm: seller pays transport and duties
• De MinimisValue limit for duty-free imports

• Union Customs Code (UCC)2013, applied 2016 · EU's core customs law for imports, exports and transit
• Import Control System 2 (ICS2)2021, all modes 2025 · EU advance cargo security filing system
• UK Low-Value Import VAT Rules2021 · UK rules taxing imports up to £135 at point of sale

1. European Commission: VAT e-Commerce One Stop Shop vat-one-stop-shop.ec.europa.eu
2. Council Directive (EU) 2017/2455 (EUR-Lex) eur-lex.europa.eu