Selling to the EU from the US: Compliance Checklist

Opening your Shopify store to European customers is one of the fastest ways to grow — the EU is a huge, high-spending market. But "just ship it there" invites tax headaches, held parcels, and legal exposure. EU rules apply to you the moment you target EU shoppers, regardless of where your warehouse sits.

This is general information, not legal advice. Use this as a practical map, then verify specifics for your products and volumes.

1. VAT and IOSS

The biggest operational shift for US sellers is VAT (value-added tax). Unlike US sales tax, VAT is charged on most goods sold to EU consumers, and buyers expect the total price to be clear up front.

Key points:

• The EU removed the low-value VAT exemption. VAT applies from the first euro on imported goods.
• For consignments valued up to €150, you can use the Import One-Stop Shop (IOSS) to collect VAT at checkout and remit it through a single registration — far smoother than leaving customers to pay at delivery.
• Without IOSS, buyers often get surprise charges and handling fees from the carrier, which drives refunds and chargebacks.
• For goods over €150, standard import VAT and possibly duties apply, usually settled at import.

Action: decide whether to register for IOSS (directly or via an intermediary), then configure Shopify to charge VAT at checkout so the displayed price is the price paid.

2. The right of withdrawal

EU consumers have a 14-day cooling-off period for most distance purchases — the right to withdraw from the contract and return goods for a refund, no reason required. This is a hard requirement, not a courtesy, and US-style "final sale" or "store credit only" policies don't override it.

You must:

• Inform customers of the right before they buy.
• Provide a model withdrawal form or an equivalent easy method.
• Refund within the required window (typically 14 days of being notified, and you can withhold until goods are returned or proof of return is provided).

For a US seller, cross-border returns add friction, so a clean process matters. Blockly — Right of Withdrawal gives EU shoppers a persistent withdrawal button that works without login, sends automated legal confirmation emails, and generates PDF audit reports — which is exactly the paper trail you want when returns cross an ocean.

3. GDPR basics

If you collect personal data from people in the EU — and taking an order means you do — GDPR applies to your US business. You don't need an EU office to be covered.

Essentials:

• A cookie banner with genuine opt-in for non-essential cookies.
• A privacy policy that matches your actual apps, pixels, and email tools.
• A lawful basis for marketing and analytics.
• A way to honor access and deletion requests.
• Consider whether you need an EU representative depending on your data footprint.

4. Product labeling and CE marking

Physical products face conformity rules. Many categories — electronics, toys, PPE, some cosmetics adjacents — require CE marking to show they meet EU safety standards, plus a responsible economic operator based in the EU under the market surveillance regulation.

Watch for:

• CE mark where the product category requires it.
• An EU-based responsible person whose details appear with the product.
• Correct language on labels and instructions for the destination market.
• Category-specific rules (food contact, cosmetics, electricals, textiles labeling).

Selling a non-compliant product into the EU risks customs seizure and liability, so confirm requirements before you list.

5. Pricing and pre-contract transparency

EU consumer law expects the customer to see the full picture before paying:

• Total price including VAT and any fees.
• Delivery costs and timeframes.
• Your identity and contact details.
• Complaint and return information.

If you run discounts, the 30-day prior-lowest-price rule applies to how you show "was/now" pricing.

The cross-border checklist

• [ ] Decide on IOSS registration and charge VAT at checkout
• [ ] Ensure displayed prices include VAT for EU buyers
• [ ] Present the right of withdrawal before purchase
• [ ] Provide an easy withdrawal method and refund on time
• [ ] Keep confirmation and audit records for each withdrawal
• [ ] Add a compliant cookie banner and privacy policy
• [ ] Support data access and deletion requests
• [ ] Confirm CE marking and an EU responsible person where required
• [ ] Localize labels and instructions
• [ ] Show total price, delivery, identity, and complaint info pre-purchase
• [ ] Apply honest, 30-day-referenced discounting

Start with the highest-friction items

Not everything carries equal risk. For most US sellers, the parcels that get stuck or refunded trace back to two things: VAT surprises at delivery and messy returns. Fix those first — get IOSS and pricing right so nobody pays twice, and give EU customers a withdrawal process that actually works across borders.

If returns are your weak point, Blockly — Right of Withdrawal is a low-effort way to make your EU cooling-off process clean, documented, and shopper-friendly.