Cross-Border VAT / IOSS Calculator 2026

IOSS (Import One Stop Shop) is an EU system that allows sellers outside the EU (including UK sellers post-Brexit) to register for EU VAT and collect it at the point of sale for consignments valued at €150 or less. Without IOSS registration, EU buyers face import VAT and customs processing fees on delivery, which significantly reduces conversion rates. UK sellers shipping more than a small number of low-value parcels to EU customers per month should consider IOSS registration — typically via an intermediary registered in an EU member state.

Consignments valued over €150 (approximately £130) shipped from the UK to EU consumers are subject to EU customs procedures at the border. The buyer is typically responsible for paying import VAT (at the destination country's standard rate) and any customs duty. The carrier (Royal Mail, DPD, DHL etc.) often collects these charges on behalf of customs. Some sellers use Delivered Duty Paid (DDP) shipping terms to pre-pay the import costs and reduce friction for EU buyers — but this requires an EU VAT number and fiscal representation.

No — since Brexit, UK VAT does not apply to goods exported from the UK to EU customers (exports are zero-rated for UK VAT purposes). However, UK sellers may need to apply EU VAT on the sale instead (via IOSS for goods ≤€150). For B2B sales to EU VAT-registered businesses, the reverse charge mechanism typically applies — the EU business accounts for the VAT rather than the UK seller. Always seek specialist VAT advice for cross-border selling at scale.