This article explains the key tax and customs requirements for selling to customers in the European Union (EU).
What You'll Need to Sell to the EU
If your business is based in the EU
- A local VAT ID for the country where your business is established
- Additional VAT registrations in other EU countries, if your business has a fixed establishment there
- Enrolment in the EU OSS scheme, if applicable (see below)
If your business is based outside the EU
- You may still need an EU VAT ID to sell to EU customers
- For low-value goods (€150 or under), VAT is typically collected at checkout
- You may need to register for IOSS or appoint a fiscal representative
Providing a valid VAT ID helps avoid delivery delays and unexpected charges for your customers.
VAT ID
A VAT ID (Value Added Tax Identification Number) is a unique number issued by a government tax authority to VAT-registered businesses.
Your VAT ID is used to:
- Collect VAT from customers, where required
- Report VAT to tax authorities
- Apply VAT exemptions or zero-rated VAT on cross-border transactions
- Identify your business for customs and tax purposes
VAT IDs are most commonly used in the EU and the United Kingdom (UK).
Can I have more than one VAT ID?
Yes. You may need multiple VAT IDs if you:
- Are registered for VAT in more than one country
- Sell in both the EU and the UK
- Operate legal entities or fixed establishments in multiple countries
Easyship lets you store and manage multiple VAT IDs within a single account. You can select the appropriate VAT ID based on your shipment origin and business setup.
OSS (One-Stop Shop)
OSS is an EU scheme that simplifies VAT reporting for cross-border sales within the EU.
What OSS allows you to do
- Declare and pay VAT for all EU cross-border B2C (business-to-consumer) sales in one place
- Submit a single quarterly VAT return
- Register in just one EU member state, instead of registering separately in every country you sell to
VAT is charged at the customer's local rate, but all reporting is centralised.
Who should use OSS?
OSS is typically used by:
- EU-based businesses selling to customers in other EU countries
- Non-EU businesses that store goods in the EU and make B2C sales within the EU
- Businesses that want to avoid multiple EU VAT registrations
Note: OSS applies to B2C sales only. It does not cover B2B transactions.
IOSS (Import One-Stop Shop)
IOSS applies to goods imported into the EU from outside the EU, with a value of €150 or less.
It allows VAT to be collected at the point of sale (i.e. at checkout), rather than when the parcel arrives.
Is IOSS mandatory?
IOSS is optional. However, using it:
- Speeds up customs clearance
- Prevents your customers from being charged VAT unexpectedly on delivery
OSS vs IOSS — what's the difference?
| OSS | IOSS | |
| Applies to | Goods shipped within the EU | Goods imported into the EU from outside |
| Sale type | Cross-border EU B2C | B2C imports |
| Value threshold | No threshold | €150 or less |
If you sell to EU customers from outside the EU, you will likely need IOSS rather than OSS.
EORI Number
An EORI (Economic Operators Registration and Identification) number is a unique ID used by EU customs authorities to identify businesses when importing or exporting goods.
You will need an EU EORI number for trade with or within the EU.
Reverse Charge Mechanism (RCM)
Under EU VAT rules, Easyship sellers do not charge VAT on eligible B2B invoices. Instead, the VAT-registered buyer accounts for the VAT in their own VAT return. This is known as the Reverse Charge Mechanism (RCM).
When does RCM apply?
RCM applies when:
- The buyer is VAT-registered in the EU
- The transaction is B2B
- The supply qualifies under cross-border or sector-specific reverse charge rules
When RCM applies, you must verify the buyer's VAT number and include the note "VAT reverse charged" on your invoice.
Fixed Establishment
A Fixed Establishment (FE) is a permanent business presence in a country — other than your company's head office — that has the people and resources needed to supply or receive goods or services for VAT purposes.
If your business has a fixed establishment in an EU country, this can affect:
- Where VAT must be charged
- Whether the Reverse Charge Mechanism applies
Need Help?
If you're unsure which VAT schemes apply to your business, we recommend speaking with a tax advisor familiar with EU regulations. For help setting up VAT, IOSS, or EORI details in your Easyship account, contact support@easyship.com.