European eCommerce marketplaces present a vast, lucrative customer base for global online businesses. For sellers sourcing high-quality, branded, or unique products from manufacturers in the United States, expanding sales into the European Union is a natural next step. However, EU VAT rules on cross-border sales and strict Amazon FBA import policies can be complex. In 2026, understanding the Import One-Stop Shop (IOSS) framework and low-value import exemptions is vital to scaling a successful US-to-EU eCommerce brand.
TL;DR — Sourcing US products for EU eCommerce shoppers requires managing the €150 low-value duty exemption, registering for EU VAT, and utilizing IOSS or Amazon's deemed reseller model to simplify tax collections at checkout.
The €150 Low-Value Duty Exemption
For direct-to-consumer (D2C) shipments sent from the US directly to an EU resident, the value of the package determines the customs and tax treatments:
- Consignments Under €150:
- Customs Duty: The goods qualify for a customs duty exemption. No duty is charged.
- VAT: Standard EU Import VAT applies to all commercial goods, regardless of value. VAT must be collected at the point of sale (checkout) or at the border.
- Consignments Over €150:
- Both Customs Duty and Import VAT are charged. The shipment requires a formal customs declaration, and the customer or carrier must pay the duty and VAT before delivery.
Note: While the European Commission has proposed eliminating the €150 duty exemption, this reform is currently delayed and not in effect for 2026. Sellers can continue to plan direct shipping models around this threshold.
The Import One-Stop Shop (IOSS)
The Import One-Stop Shop (IOSS) was introduced to simplify the collection, declaration, and payment of VAT for distance sales of imported goods not exceeding €150.
If a US seller registers for IOSS:
- VAT at Checkout: The seller charges the destination country's VAT rate (ranging from 17% in Luxembourg to 27% in Hungary) at the time of online checkout.
- Fast Clearance: The package passes through EU customs via a green channel without being held for VAT payment, as the seller’s IOSS number is validated on the customs declaration.
- Single VAT Return: Instead of registering for VAT in every EU member state where they sell, the seller submits a single monthly IOSS VAT return and payment to their chosen EU member state of registration.
The Marketplace (Amazon) Deemed Reseller Rule
If you sell on a marketplace like Amazon EU, the tax burden changes. Under the EU deemed reseller rules, when a non-EU business sells goods valued under €150 to an EU consumer:
- Amazon is deemed the seller for VAT purposes.
- Amazon automatically calculates, collects, and remits the VAT to the relevant tax authority.
- The merchant doesn't need to use their own IOSS number; they must use Amazon's IOSS number on the shipping documentation to ensure the package clears customs duty-free and VAT-free at the border.
Sourcing for Amazon FBA EU: Bulk Sourcing Model
If you're not shipping individual orders directly from the US but are importing bulk inventory to stock in European Amazon FBA warehouses, IOSS doesn't apply. Instead:
- EORI and VAT Registration: You must obtain an EU EORI number and register for VAT in the country where the FBA warehouse is located (e.g., Germany, France, Italy, or Spain).
- Paying VAT at the Border: When bulk inventory enters the EU, you must pay customs duties and Import VAT at the port of entry.
- Reclaiming VAT: You can reclaim this import VAT as input tax on your regular VAT returns, offsetting it against the VAT collected on sales to EU customers.
To avoid tying up cash in import VAT, sellers should investigate whether their country of import offers deferred import VAT accounting (similar to the UK's PVA system), which is available in countries like the Netherlands and France.
Worked Example: Direct Sourcing US Accessories to Germany
Let’s compare direct shipping a €100 order from a US warehouse to a German consumer using two methods: with IOSS (or Amazon) and without IOSS (DDU/DAP shipping).
| Scenario Elements | With IOSS (Amazon Model) | Without IOSS (DAP/DDU) |
|---|---|---|
| Item Cost (US Source) | €100.00 | €100.00 |
| German VAT (19%) | €19.00 (Paid at checkout) | €19.00 (Billed at border) |
| Customs Duty | €0.00 (Exempt) | €0.00 (Exempt) |
| Carrier Clearance Fee | €0.00 | €6.00 to €15.00 (Billed to buyer) |
| Total Paid by Buyer | €119.00 | €125.00 to €134.00 |
| Delivery Experience | Delivered directly to mailbox | Held at post office for payment |
Using IOSS or selling via Amazon ensures a seamless customer experience and protects buyers from unexpected handling fees at the door, which are a primary driver of customer returns and bad seller feedback.
Next Steps for eCommerce Sellers
Before launching a product in the EU, verify the total cost structure. Use our Amazon FBA Import Calculator to model the margins, and ensure your logistics partner is fully capable of applying the correct IOSS credentials to your shipping labels.
