Quick summary
UK Shopify merchants selling into the EU must register for EU VAT via the VAT One Stop Shop scheme (if selling more than £8,818 per year into the EU), collect duties at checkout using Shopify Markets' DDP configuration, and translate key pages for their primary market. Germany, France, and the Netherlands require specific consumer rights disclosures and language localisation.
Selling into Europe from the UK is still viable and commercially significant. EU ecommerce was worth approximately £870 billion in 2024, and UK brands retain strong credibility in key European markets, particularly in fashion, homewares, food, and lifestyle.
But the post-Brexit compliance picture is messier than most UK merchants realise. VAT is the most commonly mishandled area: thousands of UK merchants are selling into the EU without registering for VAT, unaware of the liability they are accumulating. German-specific legal requirements catch many by surprise. And a store that has not been properly localised for language and currency will simply not convert, regardless of how good the product is.
This guide covers what you need to do, and in what order.
What Changed After Brexit for UK-to-EU Selling?
The UK left the EU's single market and customs union on 1 January 2021. The practical consequences for ecommerce merchants:
No more distance selling simplicity. Before Brexit, UK merchants could sell across the EU under a single set of rules with a UK VAT registration covering EU B2C sales up to a threshold. That is no longer the case.
Every EU order is now an import. When a UK merchant ships a parcel to Germany, France, or Spain, it is an international shipment crossing a customs border. This triggers import VAT and potentially customs duties on the customer's end, unless the merchant has made arrangements to collect and remit these taxes directly.
Two options for EU VAT compliance. UK merchants selling to EU consumers either (a) register for VAT in each EU country where they sell, (b) register under the EU's One Stop Shop (OSS) scheme and handle EU VAT through a single registration, or (c) sell under DDU (Delivered Duties Unpaid) and let customers handle import taxes themselves. Option (c) is legal but commercially terrible: customers hit with unexpected duty bills at the door do not repeat-buy.
The benchmark: 67% of UK consumers who received an unexpected customs or duty charge on an international delivery said they would not purchase from that merchant again (Royal Mail International Insights, 2023). The same is true in reverse for European customers buying from UK sites.
What Is the EU VAT OSS Scheme and When Do You Need to Register?
The EU One Stop Shop (OSS) scheme, which launched in July 2021, allows businesses to register for EU VAT in a single EU member state and declare VAT on B2C sales to all EU countries through that single registration. This replaced the old country-by-country distance selling threshold system.
Key threshold: from 1 July 2021, the EU-wide threshold for OSS registration is €10,000 of B2C sales across all EU countries combined per calendar year. Once you exceed €10,000 in EU B2C sales, you must register for OSS (or register for VAT individually in each country where you sell, which is far more complex).
Who registers where: as a UK business, you register for the Non-Union OSS scheme. You can register in any EU member state, but Ireland is the most common choice for UK businesses due to language, legal system familiarity, and established tax adviser infrastructure.
How it works in practice:
- Register with the Non-Union OSS scheme through your chosen EU member state's tax authority.
- Charge the destination country's VAT rate on each EU sale. Germany is 19%, France is 20%, the Netherlands is 21% (standard rates as of 2026).
- File a quarterly OSS VAT return declaring total sales to each EU country and the VAT collected.
- Pay the total VAT to your OSS registration country. They distribute the VAT to each respective EU member state.
You do not need to register for VAT in Germany, France, or any other EU country individually if you use OSS and your sales via each individual country are below that country's distance selling threshold (which for most EU countries is now zero, i.e., OSS applies from the first sale).
Shopify and OSS: Shopify's tax settings allow you to configure EU VAT rates by destination country. Go to Settings > Taxes and Duties > European Union in your Shopify admin. With Shopify Markets enabled, you can set specific tax rates per market and configure whether prices are displayed inclusive or exclusive of VAT.
A UK-based VAT adviser or accountant with EU experience (Grant Thornton, Smith Cooper, or a specialist like Accordance VAT which focuses specifically on cross-border VAT) should handle your OSS registration and quarterly returns. The process is not complex, but errors in VAT return filing attract penalties in the relevant member states.
What Are the Localisation Requirements for EU Selling?
A product page in English with GBP pricing will convert poorly in France or the Netherlands. Localisation is not optional for meaningful EU revenue.
Language
At minimum, your product pages, checkout flow, and post-purchase emails should be in the local language for your primary EU market.
Shopify's native Translate and Adapt app (free) handles basic store translation and is compatible with Shopify Markets. For more control over translation quality and management, Langify (from £17.50/month) or Weglot (from £15/month) provide a better translation management interface and integration with professional translation services.
Machine translation (DeepL API integration available via Weglot and Langify) is sufficient for most product descriptions. Category-level content and about pages benefit from human review.
Currency
With Shopify Markets, you can display prices in EUR (or the local currency) automatically. Ensure your currency conversion settings use live rates and add a small buffer (1-2%) to account for fluctuation if you are not using dynamic pricing.
Payment Methods
Payment method preferences vary significantly by EU country. UK merchants who offer only Visa/Mastercard/PayPal will underperform in markets where local payment methods dominate:
| Country | Dominant Local Payment Methods |
|---|---|
| Germany | Klarna Pay Later (invoice), SEPA Direct Debit, PayPal |
| Netherlands | iDEAL (used in 60%+ of Dutch online payments) |
| France | Carte Bancaire, PayPal, bank transfer |
| Belgium | Bancontact (very high market share) |
| Austria | EPS, PayPal |
Shopify Payments supports iDEAL, SEPA Direct Debit, Bancontact, and several other EU local methods depending on your Shopify plan and account configuration. Enabling these in Shopify Payments settings for the relevant markets is a significant conversion lever.
What Are the German-Specific Requirements?
Germany is the largest EU ecommerce market by volume and one of the most legally demanding for foreign merchants. UK brands repeatedly underestimate the compliance requirements.
Impressum (Legal Notice): German law requires every ecommerce website to display a legal notice containing full company registration details, registered address, responsible person, and contact information. It must be accessible from every page, typically in the footer. An incomplete or missing Impressum can result in an injunction from a German consumer protection body or a competitor. Use a German Impressum generator (many are free online) and have it reviewed by a German lawyer before launching.
DSGVO (German name for GDPR): Germany applies GDPR strictly. Your cookie consent mechanism must be compliant (no pre-ticked boxes, opt-in required for non-essential cookies). Use a CMP (Consent Management Platform) such as Cookiebot (from £9/month) or OneTrust. Ensure your privacy policy is available in German and covers all data processing activities specific to German customers.
Right of Withdrawal: EU law gives consumers a 14-day right of return with no reason required. In Germany, this is strongly enforced. Your returns policy must explicitly state the 14-day withdrawal right, include the prescribed withdrawal form, and your returns process must handle German-language communications.
Packaging Act (Verpackungsgesetz): if you are shipping physical goods to German customers, you are required to register with LUCID (the German Packaging Register) and participate in a dual system for packaging recycling. Registration is free and can be done online. Non-compliance risks fines. This is overlooked by most UK merchants selling into Germany.
What Are the Key EU Product Regulations to Be Aware Of?
Beyond VAT and legal notice requirements, product regulations affect what can be sold in the EU and how it must be labelled.
CE marking: many product categories (electronics, toys, personal protective equipment, certain apparel) require CE marking to be legally sold in the EU. If your products were CE-marked when sold in the UK under EU rules pre-Brexit, check whether your UK Conformity Assessment (UKCA) mark is still recognised. As of 2026, UKCA marks are recognised in the UK but CE marks are still required for EU sales.
REACH: chemical regulations applying to cosmetics, textiles, and products containing certain chemicals. Ensure your supplier provides compliance documentation.
Food and supplements: EU food regulations differ from UK regulations in some areas post-Brexit. Verify compliance with the relevant EU member state's food authority before selling consumables into the EU.
Key Actions to Take Now
- Calculate your EU B2C sales for the last 12 months. If total EU sales exceed €10,000, initiate OSS registration through an EU member state immediately. Engage an EU VAT specialist if you have not already.
- Enable Shopify Markets for your primary EU target markets. Start with one country (Germany or the Netherlands are strong first choices for UK brands) and configure currency, language, and local payment methods.
- Register with Germany's LUCID packaging register before shipping your first German order. The process takes 30 minutes online and is free.
- Add a compliant Impressum to your Shopify store's footer if Germany is a target market.
- Install Cookiebot or OneTrust for DSGVO-compliant cookie consent management on your EU-facing store.
- Review your product categories against CE marking requirements. Request compliance documentation from your supplier for any regulated categories.
Frequently Asked Questions
Do I need to register for VAT in every EU country I sell to?
No. The EU OSS scheme allows you to register once (in one EU member state) and cover all EU B2C sales through a single quarterly return. Register for the Non-Union OSS scheme as a UK business. Individual country registration is only required if you hold stock in a specific EU country (for example, via an EU fulfilment centre).
Is iDEAL available through Shopify Payments?
Yes, Shopify Payments supports iDEAL for Dutch customers. Enable it in Shopify Payments settings under Payment Methods. iDEAL is used in approximately 60% of Dutch online transactions, so enabling it is essential for meaningful conversion in the Netherlands.
What happens if I have been selling into the EU without OSS registration?
You have likely accumulated VAT liabilities in each EU country where you have sold. Take advice from an EU VAT specialist immediately. Voluntary disclosure and back-registration typically results in lower penalties than being identified through enforcement. Do not continue trading into the EU without regularising your VAT position.
Can I use a UK address as my Impressum address for a German-facing store?
Yes. A UK registered address is acceptable for an Impressum as long as all required details (company registration number, registered address, responsible person, contact details) are complete and accurate. The requirement is for full transparency, not for a German address specifically.