Eu VAT Guide for Online Sellers

When Do Online Sellers Need VAT Registration in Europe?

12-minute read

Most online sellers need a local VAT registration in at least one European country when they hold inventory there, import goods in their own name, move stock across borders, or make domestic sales from local stock. Selling to consumers in several EU countries does not automatically mean registering everywhere: eligible cross-border B2C sales can often be reported through the Union One Stop Shop (OSS), while the Import One Stop Shop (IOSS) can cover imported consignments not exceeding €150. Marketplace VAT collection can also shift VAT liability for specific transactions, but it does not automatically remove registration duties connected to inventory, imports, stock transfers, B2B sales or direct-store orders. The United Kingdom operates a separate VAT system and applies different marketplace and registration rules.

Four checks that determine your European VAT registration route

Where is stock held?

Local inventory and stock movements can create domestic VAT obligations.

Who imports the goods?

The importer of record, EORI and import VAT treatment must be mapped.

How does the order move?

Domestic, intra-EU and imported sales follow different reporting routes.

Choose the reporting route

Use local VAT, Union OSS, IOSS or marketplace reporting as applicable.

VAT registration depends on the complete transaction flow: where goods start, where they are stored, who imports them and how the customer buys.

When do online sellers need VAT registration in Europe?

VAT registration is determined by taxable activity, not by the location of a website or the currency shown at checkout. A seller can operate one Shopify store and still create obligations in several countries if inventory is stored or moved between fulfilment centres. Conversely, an EU-established seller shipping from one country to consumers throughout the EU may be able to report eligible distance sales through one Union OSS registration.

A local VAT registration is commonly required when a business stores goods in a country, imports there as the importer and seller, sells goods domestically from local stock, or transfers its own inventory into that country. A non-EU business using the Union scheme must already have a VAT number in the Member State from which its goods are dispatched. Germany, for example, publishes a dedicated VAT registration form and an online-trade supplement for non-resident businesses.

National rules, reverse-charge provisions, fiscal-representation requirements and import structures can change the result. Therefore, treat these four activities as registration triggers that require country-level confirmation, rather than as a universal automatic test.

€10,000 Narrow EU-wide threshold for specified intra-EU B2C distance sales and certain digital services by qualifying EU-established sellers.

€150 Maximum consignment value for eligible imported distance sales reported through IOSS; excise goods are excluded.

€100,000 Maximum total EU turnover for eligibility to apply for the optional cross-border SME VAT scheme, subject to national conditions.

How can you decide whether a local VAT number is required?

Start with the movement of goods. One Amazon or Shopify account can include domestic VAT, OSS, IOSS and marketplace-reported supplies.

Five-question European VAT registration decision tree

Is inventory stored in the country?Review local registration before stock arrives. Domestic sales and own-stock movements generally sit outside an ordinary seller's OSS return.

Are you importing goods in your own name?Identify the importer of record, EORI setup, import VAT treatment and any registration needed to report or recover VAT.

Are goods moving between EU countries to consumers?Union OSS may report eligible distance sales, but it does not erase registrations created by local inventory.

Are goods shipped from outside the EU in consignments of €150 or less?IOSS may apply, or a qualifying marketplace may account for VAT as deemed supplier.

Are orders domestic, B2B, direct-store or outside the scheme?Test those transactions under local rules instead of placing them in OSS or IOSS.

This is a screening tool, not a substitute for a transaction-level review under each country's VAT rules.

Typical VAT treatment for common online-selling models

Seller scenario	Local registration signal	Potential simplification
Amazon FBA inventory stored in Germany	Strong local registration signal because goods are dispatched from German stock and domestic activity can arise.	Union OSS may cover eligible B2C sales from Germany to consumers in other EU countries, but not ordinary German domestic sales.
EU Shopify seller shipping from one EU country	Home-country VAT registration or SME-scheme identification may be relevant; destination registrations can often be avoided for eligible distance sales.	Union OSS, subject to the seller's establishment, transaction type and threshold or SME-scheme position.
US brand shipping €80 parcels directly to EU consumers	Local VAT registration may be avoided for covered imports if IOSS is used correctly; import and customs responsibilities still require planning.	IOSS, normally through an EU intermediary for a non-EU seller.
Non-EU seller using an EU marketplace	The marketplace may be deemed supplier for covered transactions, but stock, imports and direct sales remain separate tests.	Marketplace reporting through Union OSS or IOSS, depending on the supply.
Overseas seller supplying taxable goods or services in the UK	UK registration can apply from the first taxable supply because the £90,000 threshold does not protect non-established businesses.	Special marketplace rules may apply to covered goods; the UK is not part of EU OSS.

When can OSS replace multiple EU VAT registrations?

The Union OSS allows eligible B2C supplies to be reported through one Member State of identification. An EU-established seller can use it for intra-Community distance sales of goods and qualifying B2C services supplied in Member States where the seller is not established. A non-EU seller can use the Union scheme for qualifying intra-Community distance sales of goods, but not for its B2C services; those services fall under the non-Union scheme.

OSS is a reporting simplification, not a universal EU VAT number. The European Commission states that domestic supplies of goods can be included in the Union scheme only by a deemed supplier, such as a qualifying electronic interface. An ordinary retailer therefore continues to report domestic sales from local stock through the country's domestic VAT return. Stock held in several countries can consequently produce several local VAT registrations even when cross-border consumer sales are consolidated in one OSS return.

The €10,000 threshold is also narrower than its common shorthand suggests. It concerns specified intra-EU distance sales of goods and certain telecommunications, broadcasting and electronic services under defined conditions. It is not a general threshold for non-EU sellers, imported goods, local inventory or all European sales.

Practical rule: Use OSS to simplify eligible destination-country B2C reporting. Do not use it to ignore the VAT consequences of the countries where goods are imported, stored, moved or sold domestically.

When does IOSS apply to goods imported into the EU?

IOSS is available for distance sales of goods dispatched from outside the EU to an EU consumer in consignments with an intrinsic value not exceeding €150. Excise goods are outside the scheme. VAT is collected at checkout and reported in a monthly IOSS return, allowing the covered import to receive an import-VAT exemption when the valid IOSS number is transmitted correctly through the customs process.

A business established outside the EU generally needs an EU-established intermediary to use IOSS. The Commission identifies a limited exception where the seller is established in a country with an EU mutual-assistance agreement and the goods are dispatched from that qualifying country. IOSS does not cover bulk stock imported into an EU warehouse, consignments exceeding €150, B2B sales or goods subject to excise duty.

An EORI number and a VAT number serve different purposes. EORI identifies economic operators for EU customs procedures; it does not replace VAT registration or IOSS identification. A seller importing stock for later fulfilment should map the customs declaration, importer of record, import-VAT recovery and subsequent domestic sales before assuming that IOSS applies.

Operationally, match the IOSS number, checkout VAT, intrinsic value and transport data to each parcel; missing or inconsistent customs data can prevent the intended import treatment.

Does marketplace VAT collection remove the seller's registration duties?

No. Marketplace VAT collection removes or changes the seller's obligation only for transactions in which the platform is legally treated as the deemed supplier. Under the EU e-commerce rules, this can include goods sold to EU consumers through a marketplace by a seller not established in the EU, and imported consignments not exceeding €150 that are facilitated by the platform.

The deemed-supplier rule does not automatically cover the seller's imports, inventory ownership, stock transfers, B2B sales, wholesale supplies, direct website orders or transactions outside the rule. A seller with Amazon FBA stock in Europe may therefore have local VAT registrations even when Amazon calculates and remits VAT on certain consumer sales. The marketplace's VAT report and the seller's own VAT return must be reconciled so the same transaction is neither omitted nor reported twice.

The UK uses separate marketplace rules. HMRC states that an overseas seller making direct sales of goods in consignments valued at £135 or less to UK consumers generally charges UK VAT at checkout and registers, unless a marketplace is treated as the supplier. If goods are located in the UK when sold, additional registration analysis applies even when an online marketplace facilitates the sale.

Reconcile marketplace tax reports with VAT returns for every filing period.

Do small online sellers get a VAT registration threshold?

There is no single Europe-wide turnover threshold that protects every online seller. In the EU, the optional SME scheme has applied since 1 January 2025. An EU-established small enterprise can apply for domestic or cross-border VAT exemption if its total EU annual turnover does not exceed €100,000 in the current and previous calendar years and it remains below the applicable national threshold in each country. A Member State's national SME threshold cannot exceed €85,000, and participation depends on the scheme implemented by that country.

The SME scheme is not available to businesses established outside the EU, including businesses established in the United Kingdom. A participating business generally does not charge VAT on exempt supplies and loses the right to deduct input VAT used for those supplies. The scheme is optional, so eligibility does not automatically make it commercially preferable.

The United Kingdom applies its own rules. UK-established businesses generally register when taxable turnover exceeds £90,000, but GOV.UK states that a business established outside the UK must register regardless of turnover when it makes taxable UK supplies, subject to exemptions and marketplace rules. Small-seller thresholds should therefore be tested against establishment, transaction type and inventory location—not applied as a universal exemption.

What information should you review before applying for VAT registration?

A reliable VAT assessment starts with a transaction map. Do not decide from annual revenue alone. Collect the following information for every sales channel and fulfilment program:

Legal entity and country of establishment

EU or UK fixed establishments

Countries where inventory is stored

Countries from which goods are dispatched

Importer of record for each route

Incoterms and customs arrangements

Marketplace, Shopify and wholesale sales

B2C and B2B transaction split

Domestic and cross-border sales

Consignment values above or below €150

Own-stock transfers between warehouses

Returns, refunds and replacement shipments

Keep sales data by dispatch country, destination country, channel, customer type and VAT treatment. Businesses using OSS must retain relevant records for up to 10 years. Registration should be completed before taxable activity begins whenever the national procedure requires it; a late registration can lead to retrospective returns, VAT due on historic sales, interest or penalties.

Build the map at order-line level. For example, separate an €80 parcel sent from China to France from the same product sold out of German FBA stock: the first may qualify for IOSS, while the second can create German domestic reporting and a separate cross-border OSS treatment. Record the tax calculation, marketplace role, invoice, customs entry and return path for each flow. This evidence supports registrations, filings, audits and corrections.

What else should online sellers know about European VAT registration?

Do I need a VAT number in every EU country where I sell?

You do not automatically need a VAT number in every customer's country. Union OSS can consolidate eligible cross-border B2C sales into one return. Local registration is still commonly required where you hold stock, import in your own name, make domestic sales or move your own goods into a country.

Does OSS replace VAT registration where Amazon stores my inventory?

No. OSS reports eligible cross-border B2C sales, but ordinary domestic sales and stock-related obligations remain under local VAT rules. If Amazon stores your inventory in a country, review local registration before enabling that storage location, even when other EU consumer sales are declared through Union OSS.

Can a non-EU seller use IOSS without an intermediary?

A non-EU seller generally needs an EU-established intermediary to use IOSS. A limited exception applies where the seller is established in a country with an EU mutual-assistance agreement and the goods are dispatched from that qualifying country. IOSS only covers eligible imported consignments not exceeding €150.

If Amazon collects VAT, do I still need to register?

Possibly. Amazon or another marketplace may account for VAT when it is the deemed supplier, but that treatment applies only to covered transactions. Inventory ownership, imports, stock transfers, direct-store orders, B2B sales and other supplies can still create registration and filing obligations for the seller.

Does the €10,000 EU threshold apply to a US or UK seller?

No. The €10,000 threshold is not a general exemption for businesses established outside the EU. It applies to defined intra-EU distance sales and certain digital services under limited conditions. Non-EU businesses must assess marketplace, import, inventory and local-supply rules without relying on that threshold.

Is an EORI number the same as a VAT number?

No. An EORI number identifies an economic operator for EU customs procedures, while a VAT number identifies a business for VAT reporting in a jurisdiction. Importing sellers may need both. An EORI number does not replace local VAT registration, OSS registration or IOSS identification.

Simplify EU VAT Compliance

How can VATAi help determine where you need VAT registration?

VATAi reviews your entity, marketplaces, inventory locations, import routes and transaction flows to identify likely VAT registrations and the sales that may be reported through OSS or IOSS. The service covers VAT registration, VAT filings, OSS/IOSS support, retrospective returns and multi-country compliance for e-commerce businesses.

Request a VAT compliance assessment

Official Sources

European Commission, VAT e-Commerce One Stop Shop overview
Your Europe, EU VAT One Stop Shop
European Commission, Register to OSS, eligibility, registration and supplies covered
European Commission, VAT rules for small enterprises, SME scheme effective from 1 January 2025
European Commission, EORI guidance, customs identification requirements
HM Revenue & Customs, Register for VAT, UK and non-established-business thresholds
HM Revenue & Customs, overseas sellers and online marketplaces
Bavarian State Tax Office, VAT registration for non-resident businesses, including its online-trade supplement.