Selling to Europe From the US: What Online Shops Need

Europe is a tempting market for US online shops, but it does not work like selling across state lines. VAT replaces sales tax, every parcel goes through customs, and EU rules on product safety, consumer rights and data protection apply to your store as soon as you target European shoppers. Here is what you need to have in place, explained in plain terms. It is general information, not legal or tax advice.

Aerial view of a large cargo ship loaded with colorful containers being guided by small tugboats — Every order you ship from the US to an EU consumer is an import into the EU.

Key takeaways

EU VAT is due on every import since 1 July 2021. For consignments of €150 or less, IOSS lets you collect it at checkout.
As a US business you generally need an EU-established intermediary to use IOSS.
Product listings aimed at EU consumers must meet the General Product Safety Regulation, including an EU responsible economic operator.
EU consumers get a 14-day right of withdrawal and a legal guarantee of at least two years.
GDPR, cookie consent and EU payment habits all shape how your store should work for European buyers.

Many US sellers first notice European demand when orders start arriving from Germany, the Netherlands or Ireland without any marketing effort. It is tempting to treat those orders like any other international shipment. That approach works until a customer refuses a parcel because of an unexpected charge, a marketplace asks for an EU contact address, or a privacy complaint lands in your inbox.

This guide gives you the map. It covers taxes and customs first, then the legal rules that apply to your store, then the commercial choices that make European customers comfortable buying from you. EU rules are applied by each member state and change often, so treat this as a starting point and check the European Commission's Your Europe pages, national authorities or a specialist adviser for your specific case.

VAT is not sales tax

In the US, sales tax is added at checkout and depends on state rules. In the EU, VAT is a consumption tax that is normally included in the price consumers see. Each member state sets its own rates, and the rate that applies to your sale is generally the one in the buyer's country.

Two practical consequences follow. First, prices shown to EU consumers must include VAT and all unavoidable charges, under the Price Indication Directive and the Consumer Rights Directive. A price of "€40 plus tax" will confuse and annoy European shoppers. Second, you need a way to collect and pay that VAT, which brings us to IOSS.

The IOSS route for low-value parcels

Since 1 July 2021, the old exemption for imports worth €22 or less has gone, so VAT is due on all imports into the EU. The Import One-Stop Shop (IOSS) covers B2C imports in consignments of €150 or less. You charge VAT at the buyer's country rate at checkout, declare it monthly through IOSS, and the parcel clears customs without the customer paying VAT on delivery.

Sellers established outside the EU generally must appoint an EU-established intermediary to use IOSS. A few countries with EU mutual assistance agreements are exceptions, so ask an adviser whether any exception could apply to you. IOSS is optional. Without it, the carrier collects VAT and any charges from the customer at import, often with a handling fee.

€150 Maximum consignment value covered by the Import One-Stop Shop (IOSS) for B2C imports into the EU European Commission, VAT e-commerce rules from 1 July 2021

Marketplaces and stock in Europe

When a marketplace facilitates the sale of low-value imported goods, it is treated as the "deemed supplier" for VAT and handles it. If you later store stock in an EU warehouse, for example through Amazon's Pan-European FBA, VAT registration is generally required in each country where your stock is stored. Read how your fulfillment is set up before you assume a marketplace covers everything.

Customs and duty basics

VAT is only part of the import picture. Customs duty may also apply, depending on what the goods are and where they were made.

Classification. Products are classified with the 6-digit Harmonized System (HS) code. The EU uses the 8-digit Combined Nomenclature and the 10-digit TARIC code for import duty measures. The US Harmonized Tariff Schedule shares the same first six digits, which is a helpful starting point.
Goods over €150. Normal import rules apply, and customs duty may be due depending on tariff classification and origin.
Low-value parcels from 1 July 2026. A temporary €3 customs duty applies to items worth up to €150 imported into the EU, charged per tariff category in a parcel rather than per parcel. The seller or importer declares and pays it through the customs process. The Commission calls it an interim measure ahead of removing the €150 duty exemption, so check its latest guidance.
EORI. If you import into the EU in your own name, you need an EU EORI number, usually from the member state where you first lodge a customs declaration. Registration is free.

Example

Imagine a US shop ships one parcel containing five cotton T-shirts to a customer in Spain. Under the per-item rule, the T-shirts share one tariff category, so the temporary duty is €3. If the parcel held three T-shirts and a watch, two tariff categories would apply, making it €6. The products here are made up; the counting method comes from the Commission's description of the new duty.

Common mistake

Writing "merchandise" or "gift" on the customs form. Vague or false descriptions slow clearance and can lead to penalties. Use a specific description, the right code and the real value for every item.

Product rules that follow your listings

EU product law applies to products sold to EU consumers, including online sales that target them. For US sellers this is often the biggest surprise, because it requires an EU presence of some kind.

General Product Safety Regulation

The GPSR has applied since 13 December 2024. Your online listings for EU consumers must show the manufacturer's name and postal and electronic address. If the manufacturer is outside the EU, the listing must also give the name and contact details of the EU-based responsible economic operator. Add information to identify the product, such as a picture, type and batch or serial number, plus warnings or safety information in a language consumers easily understand. Products must not be placed on the EU market without an EU-established economic operator responsible for them, and marketplaces must collect this information.

CE marking and sector rules

Products such as toys, electrical equipment, radio equipment, machinery and PPE need CE marking, which shows the manufacturer declares conformity with the relevant EU legislation. Not every product needs it, and you should not put a CE mark on goods that do not. Electrical goods and batteries also bring producer registration duties under the WEEE Directive and the Batteries Regulation, and packaging brings Extended Producer Responsibility (EPR) registration in many countries, such as Germany's packaging register.

Close-up of a colorful globe turned to show the map of Europe and surrounding seas — Europe is one single market for many rules, but each country still enforces them in its own way.

EU consumer rights you must offer

EU consumer law is more protective than most US state rules, and it applies when you sell to EU consumers. The core points:

14-day right of withdrawal. Consumers can cancel an online purchase within 14 days of receiving the goods without giving a reason. If you do not inform them of this right, the period extends by up to 12 months.
Refund timing. Refund within 14 days of being told, including the standard outbound delivery cost. You may wait until you get the goods back or proof they were sent.
Return costs. The consumer pays return shipping only if you told them so in advance.
Exceptions. Custom-made or personalized goods, perishable goods and sealed hygiene items once unsealed.
Legal guarantee. At least two years of conformity from delivery under the Sale of Goods Directive. Any warranty you offer is extra and cannot reduce it.
Price reductions. When you announce a discount, show the prior price, meaning the lowest price in at least the 30 days before the reduction.

From 19 June 2026, a new "withdrawal button" requirement under Directive (EU) 2023/2673 is coming in for contracts concluded online, so check how it is being implemented in the countries you sell to.

Pro tip

A long return window from the US can be expensive. Many US sellers offer EU customers a local returns address through a returns service or fulfillment partner, which makes the 14-day right easier to honor and keeps return shipping costs predictable.

Data, cookies and website rules

The GDPR applies to businesses outside the EU that offer goods to people in the EU. That means a lawful basis for processing, a clear privacy notice, data minimization, security, processor agreements with providers such as email and payment services, rules for international data transfers and responses to data subject requests within one month. Non-EU sellers targeting EU consumers may need an EU representative under Article 27. For the most serious breaches, fines can reach €20 million or 4% of worldwide annual turnover, whichever is higher.

Cookies need attention too. Non-essential cookies, such as analytics and advertising, need prior, informed consent, and refusing must be as easy as accepting. Strictly necessary cookies, such as the shopping cart, do not need consent. If you sell in Germany or Austria, you will also see the "Impressum" requirement: a legal notice with your business identity and contact details.

The European Accessibility Act applies from 28 June 2025 to e-commerce services for consumers. Microenterprises with fewer than 10 employees and turnover or balance sheet total of no more than €2 million are exempt from the service requirements, but accessible checkout and product pages are good practice either way.

Payments, pricing and localization

European shoppers expect familiar ways to pay. Cards and PayPal are common, but many also expect local methods such as iDEAL in the Netherlands (moving to the Wero brand), Bancontact in Belgium, Blik in Poland, Swish in Sweden, SEPA Direct Debit or bank transfer, Klarna and other buy now pay later providers, Apple Pay and Google Pay. Most EU card payments also need Strong Customer Authentication, usually through 3-D Secure 2, so make sure your payment provider supports it well.

Show prices in euros (and other local currencies where relevant), including VAT, with delivery costs visible before checkout. Translate key pages for your main markets rather than relying on browser translation, and use hreflang tags so search engines show the right version.

Pick one or two first markets. Start where you already see demand rather than "all of Europe".
Choose your VAT route. IOSS through an intermediary, marketplace sales, buyer-paid import VAT or EU stock with local registration.
Sort product compliance. GPSR details, an EU responsible operator, CE marking where required and EPR registrations.
Update legal pages. Withdrawal rights, guarantee, privacy notice, cookie banner and legal notice.
Localize checkout. Euro prices including VAT, local payment methods and clear delivery terms.
Test end to end. Ship test orders and check what customers pay on arrival.

Your EU launch checklist

Decide whether to use IOSS and appoint an EU intermediary if so
Classify products and record country of origin
Check the latest Commission guidance on the €3 low-value duty
Appoint an EU responsible economic operator for GPSR
Check CE marking, WEEE, battery and packaging EPR obligations
Publish EU-compliant withdrawal, refund and guarantee terms
Review GDPR, Article 27 representative needs and cookie consent
Show VAT-inclusive euro prices and add local payment methods

Frequently asked questions

Do I need an EU company to sell to Europe?

Not necessarily. Many US sellers ship from the US using IOSS through an intermediary and an EU responsible operator for product rules. Setting up an EU entity or stock in the EU changes the tax picture, so get advice before you take that step.

Is the €10,000 VAT threshold relevant to me?

The EU-wide €10,000 threshold for cross-border distance sales helps sellers established in one EU member state. Sellers based outside the EU do not benefit from it in the same way, so plan for EU VAT from your first sale.

Can I just sell through Amazon or Etsy instead?

Marketplaces can handle VAT on some low-value imports as deemed supplier, which simplifies things. You still need to meet product safety and listing rules, and marketplaces must collect trader information from you.

Does the UK follow the same rules?

No. The UK left the EU, so it has its own VAT, customs and consumer rules, such as UK GDPR and the Consumer Rights Act 2015. Treat it as a separate market and check GOV.UK.

The bottom line

Selling to Europe from the US is very doable, but it rewards preparation. Decide how you will handle EU VAT, describe your goods accurately for customs, put an EU responsible operator behind your products, and offer the consumer rights European shoppers expect. Then make checkout feel local with euro prices including VAT and familiar payment methods.

This is general information, not legal or tax advice. EU rules are implemented nationally and change frequently, so check the European Commission, Your Europe and the national authorities in your target countries, or work with a specialist adviser before you launch.