Selling to EU Customers as a Non-EU Brand
When a UK or non-EU brand sells directly to customers in the European Union, each order is treated as an import into the EU.This means that for a typical direct shipment:
- Import VAT is charged when the parcel enters the EU
- VAT is often collected at the point of delivery
- Courier handling or administration fees may apply
- Delivery times are longer and less predictable
For the end customer, this often results in unexpected VAT and courier charges at the door, even though the product was already paid for online.
Example: Direct Shipping from the UK to the EU
A customer purchases a bracelet for €100 from a UK brand.
What happens next:
- The parcel ships directly from the UK to the EU customer
- At delivery, the courier collects:
- Import VAT (for example, 21% = €21)
- Courier handling fees (often €10–15)
Customer experience:
- Checkout price: €100
- Additional charges at delivery: ~€36
- Total cost to the customer: ~€136
These unexpected charges frequently lead to:
- Refused deliveries
- Returns
- Customer dissatisfaction
- Lost repeat purchases
A Different Approach: EU Cross-Dock Fulfilment
Instead of each customer order creating a separate import, goods are first routed through the EU.
Under this model:
- Goods are shipped to the EU in bulk
- They are customs-cleared into EU free circulation
- Individual customer orders are packed within the EU
- Orders are dispatched EU → EU
- Returns are handled locally within the EU
Example: Shipping the Same €100 Bracelet via the EU
Using the same €100 bracelet example:
What changes:
- Import VAT is handled upstream, when goods enter the EU
- Orders ship locally within the EU
- No customs clearance occurs at customer delivery
Customer experience:
- Checkout price: €100
- Additional charges at delivery: €0
- Total cost to the customer: €100
There are no VAT surprises, no courier fees at the door, and delivery feels local and predictable.
Who Accounts for VAT?
VAT is not eliminated.
Under this model:
- Import VAT is accounted for by the brand when goods enter the EU
- In a standard EU VAT-registered setup, this VAT is typically recoverable or offset via VAT returns
- VAT is handled by the party best equipped to manage it — not by the end customer
Why This Matters for Brands
- A cleaner, more predictable EU customer experience
- Improved checkout conversion
- Fewer refused deliveries and returns
- Faster EU delivery times
- Simpler EU returns and faster refunds
- Stronger EU brand perception
All without requiring long-term stock storage or changes to brand presentation.
In Summary
EU cross-dock fulfilment shifts VAT handling away from the customer delivery moment and into a controlled, upstream process.
This model does not remove VAT — it removes friction.