Selling into Europe: VAT, duties and what shoppers see at checkout

What changes when you add a European market, and which settings to check first.

What changes when you sell into Europe

Selling to shoppers in the European Union is one of the most common next steps for a growing shop, and also one of the most confusing. The good news is that the rules follow a clear logic: tax is paid where the shopper is, and the shopper should see the full price before paying. Most of the work is setting your shop up so both happen without surprises.

This guide covers what EU shoppers expect to see, how VAT and duties work for goods, and which settings to check before you open a European market. It is a practical overview, not tax advice: rules change, and your situation depends on where your business is based. Check the official pages linked at the end, and speak to a tax adviser before you register for anything.

How VAT works for online sales of goods

Since July 2021, VAT on goods sold online to consumers in another EU country is due at the rate of the shopper’s country. Rates differ: the standard rate is 19% in Germany and 20% in France, for example, and reduced rates apply to some products. The EU publishes the current rates of every member country.

If your business is in the EU

Businesses based in the EU can charge their home country’s VAT until their cross-border sales to consumers in other EU countries pass €10,000 a year in total. Above that, they charge each shopper’s local VAT. Instead of registering in every country, they can declare and pay it all through the One-Stop Shop (OSS) in their home country.

If you ship from outside the EU

For shops in India, the United States, the UAE and anywhere else outside the EU, every parcel is an import. What happens depends on the value of the parcel:

Most non-EU businesses need an intermediary based in the EU to register for IOSS. It is optional, but without it your shoppers meet a bill at the door, and many of them refuse the parcel.

What shoppers expect to see at checkout

European shoppers are used to seeing the final price on the product page. Prices shown to consumers must include VAT and other taxes, and a price that grows at checkout is a common reason to abandon a cart. Plan for these five things:

1. Prices with VAT included, in the shopper’s currency.
2. Delivery costs and times shown before checkout, for each country you ship to.
3. No charges at the door. If duties apply, charge them at checkout so the shopper pays once.
4. Local ways to pay. Card is common everywhere, but many shoppers prefer local methods, such as Klarna in Germany.
5. Returns. EU consumers can usually withdraw from an online purchase within 14 days. Say clearly how returns work and who pays for return delivery.

If you show a discount, EU rules say the “before” price must be the lowest price you charged in the 30 days before the discount. DripFunnel applies this rule in EU markets automatically.

Product rules to check

Since December 2024, the EU’s General Product Safety Regulation applies to consumer products sold online. For most products it means a responsible person based in the EU, and product pages that show who made the product, how to identify it and any warnings. Some products, such as cosmetics, toys and electrical goods, have their own extra rules. In DripFunnel, legal and safety details like country of origin and warnings are fields on every product, on every plan.

Setting up a European market in DripFunnel

In DripFunnel, each country or region you sell to is a market, with its own currency, languages, tax and couriers. Markets are available from Growth Pro (2 markets) and Business (10 markets).

• Currency: prices convert automatically, or you set them yourself. From Growth Pro you can adjust prices per market, for example +10% for one country, rounded nicely. On Business you can set exact local prices.
• Tax: tax-inclusive or tax-exclusive prices follow the rule of each market, and shopper invoices carry the tax detail each country needs.
• Language: the shop, emails and invoices can appear in the shopper’s language, with AI translations from one source text.
• Duties: on Business, duties and import taxes can be charged at checkout, so shoppers pay once and nothing at the door.
• Domain: on Business, each market can have its own domain.

The step-by-step guides are in the help centre: Add a market, Set prices per currency and Charge duties at checkout.

A checklist before you go live in Europe

1. Decide which countries to start with. One or two is easier to learn from than all 27.
2. Get advice on VAT: whether you need IOSS or OSS, and who will be your intermediary or representative.
3. Set prices per market, with VAT included, and check how they round.
4. Check delivery costs, times and couriers for each country.
5. Check product pages for safety details, warnings and the right language.
6. Write a returns page that covers the 14-day right of withdrawal.
7. Place a test order to each new market and check the invoice.

What about the United Kingdom?

The UK is not in the EU and has its own rules. For goods sent from abroad in parcels worth up to £135, VAT is charged at the point of sale rather than at the border, so sellers usually register for UK VAT. Treat the UK as its own market with its own prices and settings.

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