EU Shipping Overview The European Union represents 450 million consumers across 27 countries. Since July 2021, the Import One-Stop Shop (IOSS) system simplifies VAT collection for non-EU sellers shipping low-value goods.
IOSS Explained
What is IOSS?
Aspect Description Purpose Simplified VAT for B2C sales ≤ €150 Registration Single registration covers all EU Collection Collect VAT at checkout Remittance Monthly return to one EU country
IOSS vs Traditional Import VAT
Without IOSS With IOSS Customer pays VAT at delivery VAT included in price Customs holds package Faster clearance Unexpected fees for buyer All-inclusive pricing Higher refusal rates Better customer experience
IOSS Threshold
Value Process ≤ €150 IOSS eligible > €150 Traditional customs, duties + VAT at import
EU VAT Rates by Country
Country Standard VAT Reduced Rate Germany 19% 7% France 20% 5.5% Italy 22% 4-10% Spain 21% 4-10% Netherlands 21% 9% Poland 23% 5-8% Belgium 21% 6-12% Sweden 25% 6-12% Austria 20% 10-13% Ireland 23% 9-13.5%
Carrier Rate Comparison
To Germany (1-5 lbs)
Weight USPS Priority UPS Standard DHL Express DHL eCommerce 1 lb $48.50 $55.40 $62.80 $16.20 2 lbs $55.20 $65.80 $72.50 $19.50 5 lbs $78.40 $92.50 $98.80 $30.20
Atoship Commercial Rates (to Germany)
Weight USPS via Atoship DHL eCommerce UPS via Atoship 1 lb $38.80 $12.80 $42.50 2 lbs $44.20 $15.40 $50.80 5 lbs $62.80 $23.80 $72.50
Transit Times by Region
Western Europe
Service Germany France Netherlands Belgium USPS Priority 6-10d 6-10d 6-10d 6-10d DHL eCommerce 8-15d 10-18d 8-15d 10-18d UPS Standard 5-8d 5-8d 5-8d 5-8d FedEx Priority 2-4d 2-4d 2-4d 2-4d
Eastern Europe
Service Poland Czech Rep Hungary Romania USPS Priority 8-14d 8-14d 10-16d 10-18d DHL eCommerce 12-20d 12-20d 14-22d 14-25d UPS Standard 6-10d 6-10d 7-12d 8-14d
Nordic Countries
Service Sweden Denmark Finland Norway* USPS Priority 8-12d 6-10d 10-14d 8-14d DHL eCommerce 10-18d 10-16d 12-20d N/A UPS Standard 6-10d 5-8d 7-12d 6-10d
*Norway is not EU - different customs rules apply
Duty Rates (Shipments > €150)
Category Typical Duty Combined (Duty + 20% VAT) Clothing 12% 32% Electronics 0% 20% Footwear 8-17% 28-37% Jewelry 0-4% 20-24% Books 0% 0% Cosmetics 0% 20% Toys 0-4.7% 20-25%
IOSS Registration Process
Direct Registration
Choose one EU country for registration
Apply through national tax portal
Receive IOSS number (IMxxxxxxxxxxxxxxxx)
Begin collecting VAT at checkout
Option Cost Best For Tax agent €100-300/month Medium volume Marketplace facilitation Varies Amazon, eBay sellers Shipping platform Varies Integrated solution
Documentation Requirements
IOSS Shipments (≤ €150)
Document Required Commercial invoice Yes IOSS number On all customs docs HS code Yes Itemized values Yes
Non-IOSS Shipments (> €150)
Document Required Commercial invoice Yes Certificate of origin Recommended Proof of payment Sometimes HS codes Yes
Multi-Country Fulfillment Strategy
Single US Location
Pros Cons Simple inventory Longer transit Lower fixed costs Higher shipping costs Centralized ops Customer wait times
EU Fulfillment Center
Pros Cons Faster EU delivery Inventory investment Lower per-order ship Setup complexity Local returns VAT registration per country
Marketplace Fulfillment (FBA, etc.)
Pros Cons Turn-key solution Fees Prime eligibility Less control Local returns Brand dilution
Country-Specific Considerations
Germany
Largest EU e-commerce market
High consumer expectations
Strong returns culture (15-20%)
Preferred payment: Invoice (Rechnung)
France
Second-largest market
French language preferred
Colissimo for returns
Lower return rates than Germany
Italy
Growing market
Cash on delivery popular
Longer delivery acceptable
Regional delivery variations
Spain
Price-sensitive consumers
Spanish language essential
Afternoon delivery common
High urban concentration
Returns from EU
Costs by Country
Country Return to US Local Return Germany €25-45 €5-10 France €25-45 €5-12 UK (non-EU) £20-40 £5-10 Italy €28-50 €6-12
Return Strategies
Value Strategy < €20 Refund without return €20-50 Customer pays return > €50 EU returns address recommended
Prohibited Items (EU-Wide)
Category Status Weapons Prohibited Counterfeit goods Prohibited Certain food items Restricted CBD products Varies by country Cosmetics Must meet EU regulations
Atoship EU Shipping Features
IOSS integration : Proper documentationMulti-carrier comparison : Best rate by countryCountry-specific rates : Accurate pricingVAT calculation : Correct rates by destinationCommercial rates : 25-45% savingsStart Shipping to the EU Create your Atoship account for commercial EU shipping rates with IOSS support.
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