Answer 3 questions and get the right VAT/duty setup for your Shopify EU orders — with the Nov 1 €5-per-line change built in.
This decides which VAT scheme you can use at all.
The flat fee on low-value EU parcels rises from €3 to €5 per declaration line (€3 duty + €2 Union Handling Fee, Regulation (EU) 2026/382). The scheme you choose decides where VAT is collected — but the duty side is charged separately, per line, regardless of your IOSS/OSS setup. Platform billing often counts product lines separately from the EU rule, which is where overcharges appear.
IOSS (Import One Stop Shop) is for non-EU sellers shipping low-value B2C parcels (≤ €150) into the EU — it collects import VAT at checkout. OSS (One Stop Shop) is for EU-based sellers making cross-border B2C sales within the EU, so they don't register for VAT in every member state.
No. IOSS covers VAT only. The €5 per declaration line (€3 duty + €2 Union Handling Fee under Regulation (EU) 2026/382) is a separate customs charge and applies even to IOSS-registered sellers. Under €150 does not make a parcel duty-free — it switches it to the flat-fee regime.
DDP (Delivered Duty Paid) collects estimated duty and tax at checkout and the carrier clears customs on your behalf — better conversion and no surprise fees at the door. DDU/DAP pushes carrier-collected fees onto the buyer before delivery, which is the top cause of package abandonment and bad reviews for EU orders.
Common causes: a missing VAT registration number in Settings → Taxes and duties → European Union, no shipping zone defined for the EU destination, an order over €150 run through an IOSS setup, or a B2B buyer's valid VAT number triggering reverse charge. Shopify is a collection tool, not a deemed-supplier marketplace — you remain responsible for filing and remitting.
Generally yes. Unless your business is established in a country with a mutual assistance agreement with the EU, non-EU sellers must appoint an EU-based fiscal representative to register for IOSS and share liability for VAT reporting.
Use the free calculator to compare EU regulation vs Shopify billing line by line — then join the waitlist for the full duty audit engine before Nov 1.
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