I just sent out an order (two tote bags) to someone in Sweden. My shop is in the US. I don’t have a DAT number. What do I need to do from here to make sure any tax obligation is completed?
Topic summary
A US-based seller shipped tote bags to Sweden and is uncertain about EU tax requirements.
Key clarifications provided:
- No VAT registration required for US sellers shipping to the EU unless goods are stored within EU countries
- IOSS (Import One-Stop Shop) is an optional VAT registration system for shipments under €150 that improves customer experience by eliminating delivery charges, but it’s not mandatory
Without EU tax registrations:
- Customers will be charged VAT, duties, and customs fees upon delivery when using standard courier services (DDP delivery method)
- Recommendation: Warn customers in advance about these additional costs at delivery
Additional resources:
- A Shopify app link for EU compliance assistance was shared for sellers who ship to the EU/UK more frequently
Hi RachelErdhrim,
You are not obligated to have a VAT registration in EU to sell to EU. VAT registration is only required if you store goods in an EU country. IOSS, a form of VAT registration, helps ship Low Value Consignments (LVCs) of below 150€ to EU while improving customer buying experience (no charges on delivery). But even that is not obligatory.
Without any registrations for EU VATs or a courier DDP delivery method, they will be charged with VAT, duties and customs fee on delivery. I suggest you warn the customer about the upcoming further costs.
If you are looking at selling to EU and UK on a more frequent manner, we are happy to help at EAS 