Tax and Trade
Tax and Trade for Cross-Border Ecommerce
Europe is the largest single growth market most US brands haven’t yet built into. Mature ecommerce infrastructure, customers who buy directly from US brands, and a regulatory framework that, while complex, is solvable. The hard part isn’t demand. It’s the tax and trade rules at the border.
Expandly handles the full tax position as one connected piece of your expansion. VAT, IOSS, customs duty, country-specific obligations. You ship. We make sure the math works.
In this section
01
The EU customs duty exemption is being removed
03
The US-EU tariff position is unsettled.
05
Fiscal representation
02
IOSS remains the standard route
04
Marketplace deemed-supplier rules
The landscape right now
The current state of tax and trade obligations affecting cross-border brands shipping into and operating within Europe.
IOSS threshold for B2C parcels
IOSS covers B2C parcels under €150 imported into the EU from outside. Above the threshold, or where you hold inventory locally, country-specific registrations apply.
€150
EU Commission
PostEurop delay request pending
PostEurop has formally requested a 6–12 month delay to the EU customs duty change. As of mid-2026, the request is acknowledged but the deadline holds.
Pending
PostEurop, EU Commission
Fiscal representation requirements
France, Poland and several other EU countries require a fiscal representative for non-EU VAT registrants. Joint liability arrangements; treat as a regulated provider relationship.
Required
EU member-state tax authorities
DDP becoming the customer standard
Delivered Duty Paid is now the default expectation for serious cross-border ecommerce into Europe. DDU drives refusals and customer complaints; almost all scaled brands operate DDP.
Default
Industry practice
Marketplace deemed-supplier rules
Amazon and other EU marketplaces collect VAT on many transactions under deemed-supplier rules. Coverage varies by country and transaction type; does not replace your own registrations where required.
Partial
EU Commission; marketplace policies
Global Expansion Pathway
How Expandly handles tax and trade
The pattern we see most often: a brand buys VAT registrations from one provider, customs from another, fiscal representation from a third. Twelve months in, nobody owns the picture. Tax authority notices start arriving. Margins shrink. The expansion that looked promising starts to look painful.
Our job is to keep that from happening. We design the tax position before any registration is filed, using your channel mix, your planned route to each market, and your forecast volumes. The output is one plan covering registrations, IOSS, customs duty, fiscal representation where needed, and ongoing returns.
This sits inside step two (Compliance) of the Global Expansion Pathway, our six-step model for taking US, Canadian and UK brands into Europe. Tax connects directly into Logistics and Omni-Channel, because the route to market is what drives the tax obligations in the first place.
This sits across step one (Explore), step two (Compliance) and step four (Omni-Channel) of the Global Expansion Pathway.
What's changing in the next 12 months
A forward calendar of tax and trade shifts expected through mid-2027. Several have direct operational impact for any brand shipping into or holding inventory in Europe.
EU customs duty exemption removal
The €150 customs duty exemption is replaced with a €3 flat-rate charge applying to most low-value B2C parcels shipped into the EU from outside.
1 Jul 2026
EU Commission
US-EU trade deal ratification deadline
The Trump administration has given the EU until 4 July 2026 to ratify a trade deal or face higher tariffs. Position remains unsettled and brand pricing models should reflect both scenarios.
4 Jul 2026
US administration
PPWR mandatory provisions begin
EU Packaging and Packaging Waste Regulation provisions take effect, affecting packaging design, recycled content and reuse targets. Tax-adjacent through customs declarations on packaging materials.
12 Aug 2026
EU PPWR
Further IOSS clarifications
EU Commission continues to clarify IOSS mechanics, particularly around returns, marketplace seller responsibilities and the deemed-supplier perimeter. Rolling updates expected.
Ongoing
EU Commission
Country VAT enforcement uplift
EU member states are increasing enforcement on non-EU sellers with local inventory. Germany, France and Italy lead the activity. Brands with EU warehousing should verify their position before Q3.
Through 2026
EU member-state tax authorities
Tax and Trade Blog
Latest insights on sports and active
EU Customs Charge Rising to €5 Per Parcel From November 2026
A new €2 handling fee joins the existing €3 flat-rate duty from November 2026, bringing the combined EU customs charge to €5 per parcel. Multi-SKU
EU ViDA Implementing Regulation Sets Updated IOSS Framework for January 2027
EU Implementing Regulation 2026/1869 updates the IOSS framework from January 2027, tightening digital VAT reporting for ecommerce sellers.
US Products Can Enter Europe Duty-Free From July 2026. Here’s What Changes
Regulation EU 2026/1455 removes import duty on US industrial goods from July 2026. Find out if your products qualify and what changes for EU sellers.
Every EU-Bound Parcel Now Carries a Customs Charge
From 1 July, every parcel entering the EU from outside attracts a €3 flat-rate customs duty. November adds mandatory product identifiers and a €2 handling
EU Parliament Ratifies Turnberry – But a Suspension Clause Keeps Risk on the Table
The European Parliament ratified the Turnberry framework 440-151. The July 4 deadline set by President Trump is expected to be met — but a suspension
EU Ends €150 Customs Exemption – €3 Flat-Rate Duty Confirmed
The EU’s 150 euro de minimis exemption ends on 1 July 2026. From that date, every parcel entering the EU carries a 3 euro flat-rate
Trump Gives EU Until July 4 to Ratify Trade Deal -What US Brands Operating in Europe Need to Watch
President Trump has set July 4, 2026 as the deadline for the EU to ratify the Turnberry trade deal, which caps most EU exports to
EU 3 Euro Customs Duty Holds for July 1 Despite Delay Calls
The EU replaces its 150 euro duty-free threshold with a 3 euro flat customs charge per parcel on 1 July 2026. PostEurop has asked for
Europe
The brands that win at European tax aren’t the ones with the best providers. They’re the ones with one.
The direction of travel is clear. Obligations are moving closer to the seller. Customs duty restructuring, rolling IOSS clarifications, the case-by-case approach to fiscal representation, the unsettled tariff position — they all point the same way. Brands are expected to know more, register in more places, and own more of the burden.
Three traits separate the brands who scale cleanly from those who unwind twelve months in:
- They plan tax before they plan launch.
- They consolidate providers instead of stitching specialists together.
- They revisit the position annually instead of treating the initial setup as final.
The European opportunity hasn’t changed. It’s still where US, Canadian and UK brands find their next major growth market. What’s changed is who owns the picture.
Country guides
How this varies by country
United Kingdom
- Post-Brexit; UK runs its own VAT regime separate from EU IOSS. UK VAT registration required for sales above the threshold; consider non-resident registration ahead of UK marketplace listings
- HMRC focused on online marketplace seller verification; UK customs declarations required at the border for all EU–UK movements
- UK has bilateral approach to US trade; tariff position is generally more stable than EU position but still evolving
Germany
- Largest EU ecommerce market; strict registration enforcement and marketplace seller verification under §22f UStG. Get the registration and certificate in place before Amazon DE listings go live
- Cross-border distance selling triggers German VAT registration above the EU-wide €10K threshold; Pan-European FBA inventory triggers it automatically
- Bundeszentralamt für Steuern (BZSt) is active on non-resident seller checks; non-compliant sellers face marketplace listing removal
France
- Fiscal representation required for non-EU sellers under French VAT rules; joint liability arrangement with the FR-established representative
- Déclaration douanière unifiée (DAU) and import VAT regime applies; postponed VAT accounting available for registered importers
- DGFiP increasingly active on non-EU sellers; French language invoicing and specific format requirements apply for B2B sales
Nertherlands
- Common EU entry point and our Netherlands warehouse hub. Local inventory triggers Dutch VAT obligations; consider the Article 23 deferment licence for postponed import VAT accounting
- Belastingdienst is cooperative on non-resident registrations; processing times generally faster than France or Italy
- Strong fiscal representation availability; Netherlands often selected as primary EU VAT registration country for non-EU sellers consolidating European operations
Spain
- Modelo 303 quarterly VAT returns; growing enforcement on non-EU sellers using Spanish marketplaces and warehouses
- Spanish-language invoicing required for B2B; Canary Islands operate a separate tax regime (IGIC) and are outside EU VAT territory
- Agencia Tributaria active on Pan-European FBA inventory triggers; non-resident sellers should verify their position before holding inventory locally
Italy
- Specific rules apply to non-EU registrants; take current advice as Italian VAT mechanics differ materially from neighbouring countries
- SdI (Sistema di Interscambio) electronic invoicing mandatory for B2B and B2C with Italian customers; technical setup needed before launch
- Fiscal representation required for non-EU sellers; Agenzia delle Entrate processing times can extend to 4–6 months for new registrations
upcoming events
Related events
Coming Sooon
Netherlands Confirms Intent to Ban Ashwagandha -What Supplement Brands Must Do Now
The Dutch Ministry of Health confirmed its intent to ban ashwagandha on 10 April 2026, with no effective date yet set. Denmark already bans leaf-derived ashwagandha and France has an ANSES advisory. Supplement brands with Netherlands-based EU fulfillment should assess affected products and a realistic effective date now.
EU Health Supplement Market Entry for US Brands : The 2026 Compliance Guide
The European health supplement market exceeds EUR 10 billion in 2026, but EU rules differ sharply from the US. Before placing a product on the EU market, US brands must clear Novel Food status, map health claims to the EU permitted list, check member state ingredient restrictions, and meet FIC labeling and PPWR packaging requirements.
EU Sports Nutrition Market Entry: What US Brands Need to Comply With Before Shipping the First Unit
The EU sports nutrition market is worth $6.61 billion in 2026. Before a single unit ships, US brands must answer five compliance questions in order: Novel Food status, EU permitted health claims, member state ingredient restrictions, FIC-compliant labeling and PPWR packaging. The sequence matters, and each question has a definite answer rather than guesswork.
frequently asked questions
Common questions
Which is the best first European country for a US sports brand?
1 July 2026. PostEurop has asked for a delay, but as of May 2026 the deadline holds. The €150 exemption is replaced with a €3 flat-rate charge.
Do European customers respond differently to athletic brands than US customers?
Often yes. IOSS covers B2C parcels under €150 shipped direct from outside the EU. Above that threshold, or where you hold inventory locally, country-specific registrations remain necessary.
Is specialty retail or DTC the better channel in European sports?
A local legal representative who is jointly liable for your VAT obligations. Required for non-EU sellers in several EU countries, including France and Poland.
What does ESPR mean for activewear specifically?
The position is moving. Model both higher-tariff and ratified-deal scenarios into your pricing for at least the next two quarters.
How does sports nutrition compliance differ from general supplements?
For some transactions, yes. Amazon and others act as “deemed supplier” and collect VAT on your behalf on those sales. That’s relief on those transactions, not a substitute for your own tax registrations where local rules require them.
If this sounds like your world,
let's talk.
Tax-heavy expansion typically benefits from at least our Guided tier, where compliance is built for you rather than alongside you.
Service tiers
Self-Serve
- £1,150/month
- Platform-led with email support
- Best for: $1M–$5M brands
Guided
- £3,000/month
- Dedicated Account Manager
- Best for: $5M–$20M brands
VIP
- £5,000/month
- Dedicated VIP Consultant
- Best for: $20M–$50M+ brands
Ready to talk?
If you’re planning European expansion and want the tax piece handled cleanly from day one, book a call. If you’d like a personalized set of recommendations first, the four-step lead form will route you to a tailored guide.
