Using an overseas company for cross-border e-commerce: Do I need to register for VAT when selling to the EU/UK? A look at OSS, IOSS, and thresholds.

Key point first: If you use an overseas company to sell goods to consumers (B2C) in the EU or UK, you generally cannot avoid local value-added tax (VAT). Since July 2021, the EU has reformed its system, replacing individual country thresholds with a single EU-wide threshold of €10,000. Above this threshold, VAT must be charged in the country of destination, and you can use the One Stop Shop (OSS) for single registration and declaration. For low-value imports (≤€150), IOSS is available. When selling through platforms like Amazon, the platform is often treated as the "deemed supplier" and collects/remits VAT. The following is based on official EU and UK rules; thresholds and rules change frequently, so always refer to the latest official announcements and professional tax advice.

First, clarify: VAT is not corporate income tax; it is a consumption tax triggered by "selling into a jurisdiction."

VAT (value-added tax/consumption tax) is separate from income tax on company profits. Even if your overseas company is established in a tax-free or low-tax jurisdiction and does not pay income tax at the corporate level, you may still need to register and declare VAT in the buyer's country when selling goods or digital services to consumers in the EU/UK. Whether VAT applies depends on "where you sell, to whom, and what you sell," not on where the company is registered.

Source：European Commission — VAT One Stop Shop

EU: €10,000 unified threshold + One Stop Shop (OSS) single registration and declaration

Since July 2021, the EU has replaced individual member states' distance selling thresholds with a single EU-wide threshold of €10,000: annual cross-border B2C sales below this threshold may follow the seller's country VAT; above the threshold, VAT must be charged at the buyer's country rate. To avoid registering in each country of sale, the EU offers the One Stop Shop (OSS) — register in one member state and file a single VAT return covering all EU sales. Actual application and rates are subject to official rules of each country and the EU.

Source：Your Europe — VAT One Stop Shop

Low-value imported goods: Use IOSS for items ≤€150; the old exemption has been abolished.

For goods sent from outside the EU (e.g., from an Asian warehouse) with an intrinsic value ≤€150 per item sold to EU consumers, you can use the Import One Stop Shop (IOSS) to collect VAT at the time of sale and file monthly returns, making customs clearance smoother and avoiding additional charges to the buyer upon delivery. Note: The EU has abolished the previous VAT exemption for small imports (under €22); now, in principle, all imports are subject to VAT. Whether IOSS applies and how to register is subject to official EU rules.

Source：European Commission — Import One Stop Shop (IOSS)

UK (post-Brexit): VAT on goods ≤£135 collected at point of sale; non-established sellers often must register from the first sale.

Since Brexit, the UK has its own system: For goods sold to UK consumers with a consignment value ≤£135, VAT is collected at the "point of sale" (rather than at import), and sellers generally need to register for UK VAT and file returns. For overseas sellers without a UK establishment, the UK generally does not provide a local registration threshold, so registration may be required from the first sale. When selling through online marketplaces (e.g., Amazon), the marketplace is often treated as the "deemed supplier" and collects/remits VAT on your behalf. Actual registration obligations are subject to GOV.UK rules.

Source：GOV.UK — VAT and overseas goods sold to customers in the UK

Platform collection: When selling through Amazon/eBay, VAT is often handled by the platform — but that does not mean you are off the hook.

In many cases, online marketplaces are treated as "deemed suppliers" by the EU or UK, collecting and remitting VAT on behalf of non-local sellers or for imports ≤€150/£135. This reduces the burden of per-transaction declarations, but you may still need to provide VAT/tax registration information, and sales through your own website (not the platform) are generally your responsibility. Do not assume that "the platform handles it" means you are completely exempt; actual obligations vary by sales channel and amount, and should be determined based on official rules and professional tax advice.

Source：European Commission — Online sellers

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This page is a neutral information compilation, for reference only, notTax / LegalRecommendations do not constitute any commitments. Programs are subject to change; please refer to the latest official announcements.　·　Last updated：2026-07-16