An eCommerce Guide to Shipping from the UK into Europe

At Whistl Parcels, part of the Whistl Group, the UK’s leading parcel delivery management company, we help retailers and brands ship internationally with confidence.

In this guide, we explain UK businesses’ current VAT and duty obligations when sending goods into the European Union, alongside practical options for shipping to EU consumers. We’ll also explore how to reduce friction at checkout, avoid unexpected delivery charges, and maximise your cross‑border eCommerce sales.

The Current UK–EU Trading Landscape

Since leaving the EU, the UK has had to establish new trading arrangements with individual member states. For many retailers, this has resulted in:

• Increased paperwork and customs declarations

• More detailed product data requirements

• Delivery delays and disrupted customer experiences

• In some cases, the need for fiscal representation within the EU

It has also been widely reported that some UK businesses now struggle to trade profitably into Europe without the right shipping and tax setup.

VAT changes you need to know

From 1 July 2021, all commercial goods imported into the EU are subject to VAT regardless of value.

This means that for sales to EU consumers, UK retailers must now:

• Collect VAT at checkout (depending on the destination country, product origin and item value)

• Declare VAT for customs clearance

• Submit VAT returns to the relevant authority

While this may sound complex, there is a solution designed to simplify the process.

What is IOSS?

The Import One‑Stop Shop (IOSS) is an EU scheme created to simplify VAT collection and reporting for distance sales of imported goods valued at €150 or less.

IOSS allows sellers to:

• Collect VAT from EU customers at the point of purchase

• Declare and pay VAT via a single monthly return

• Use one VAT ID to cover all 27 EU member states

Why IOSS Improves the Customer Experience

For consumers, IOSS removes unwanted surprises:

• VAT is paid upfront at checkout

• No unexpected fees on delivery

• Faster, smoother customs clearance

If a seller is not IOSS‑registered, the buyer must pay VAT (and often a customs administration fee) when the goods enter the EU – a common cause of failed deliveries and abandoned parcels.

Your Options for Shipping from the UK into Europe

Reaching EU customers remains essential for many eCommerce brands. Below is a summary of the main shipping options available and how they work in practice.

Selling via an Online Marketplace

If you sell through a marketplace such as Amazon or eBay, the marketplace will usually be registered for IOSS.

To remain compliant, you’ll need to:

• Capture the marketplace’s IOSS number

• Include it accurately within your shipping data

This ensures VAT is handled correctly at import.

Using the Import One‑Stop Shop (IOSS)

Retailers can either self‑register for IOSS or use one of Whistl Parcels’ assisted IOSS solutions.

This approach allows you to:

• Calculate and collect VAT at checkout

• Pay VAT directly to the EU via a single return

• Offer a seamless, duty‑paid delivery experience

Delivery Duties Unpaid (DDU)

With DDU, UK sellers do not collect VAT or duty at checkout. Instead, the EU customer is contacted in‑country and asked to pay all charges before delivery.

DDU is typically used for:

• Goods valued over €150

• Certain high‑value or specialist products

The Risks of Shipping DDU into the EU

While DDU can appear simpler for the retailer, it often creates friction for the customer.

Common issues include:

• Unexpected VAT, duty and administration fees

• Longer delivery times while payments are collected

• Higher refusal and return rates

Although the checkout experience may be smooth, the post‑purchase experience often isn’t – which can damage customer trust and repeat sales.

How Whistl Parcels Helps You Grow EU Cross-Border Sales

Whistl Parcels has partnered with Deloitte and Taxamo to offer assisted IOSS solutions, helping UK retailers continue to ship into Europe with confidence.

Deloitte – ideal for regular eCommerce volumes

Deloitte provides an end‑to‑end managed service, including:

• IOSS registration

• Monthly VAT return preparation and submission

• Ongoing compliance support and query handling

Taxamo – flexible, pay‑as‑you‑go IOSS

Taxamo acts as the VAT deemed reseller when facilitating sales of goods valued at up to €150 to EU consumers.

This option is ideal for businesses looking for:

• A scalable, usage‑based model

• Minimal administrative overhead