Must-Read for EU Ecommerce Sellers:
3 Key Compliance Guides
The European market, with its vast consumer base and high purchasing power, has always been a prime target for cross-border e-commerce sellers. However, the EU is known for its strict regulations and high standards. Without a clear understanding of the rules sellers risk account suspension, fines, or product removal if they list and sell products hastily.
This article outlines the most common compliance issues faced by e-commerce sellers in Europe, helping you quicky grasp the key points and reduce risks.
VAT Compliance
What is VAT? VAT is a consumption tax imposed by the EU on goods and services.
What should seller do?- Register for a VAT number (usually required in the country where inventory is stored).
- Regularly declare VAT and payable tax amounts.
Reminder
Since 2021, the EU has introduced the Import One Stop Shop(IOSS) for non-EU sellers. This mechanism simplifies VAT declaration for low-value cross-border parcels (valued under EUR 150),
EPR Environmental Regulations
EPR is an EU system designed to promote environmental sustainability. It required producers/importers to bear responsibility for the recycling and disposal costs of their products within the EU.
Product categories covered include:
- Packaging materials (boxes, plastic bags, fillers, etc.)
- Electrical and electronic equipment (EEE)
- Batteries
- Furniture and textiles (included in certain countries)
What should seller do?
- Register for an EPR number in the country of sale.
- Regularly report packaging usage and pay fees.
- Submit the EPR number to platforms (e.g. Amazon)
Non-compliance risks If no valid EPR number is provided platforms may prohibit sales in that country and removed listed products.
GPSR (General Product Safety Regulation)
GPSR is the EU’s latest product safety law, effective in 2024. It applies to all non-food consumer products. A key requirement is that all goods entering the EU must have an EU-based Responsible Person.
What should sellers do?
- Indicate the name and address of the EU Responsible Person on product labels.
- Prepare product technical documentation.
- Establish proper recall and reporting mechanisms.
Non-compliance risks Products without an EU Responsible Person cannot be sold in the EU and may be intercepted by customs or E-commerce platforms.
GPSR (General Product Safety Regulation)
GPSR is the EU’s latest product safety law, effective in 2024. It applies to all non-food consumer products. A key requirement is that all goods entering the EU must have an EU-based Responsible Person.
What should sellers do?
- Indicate the name and address of the EU Responsible Person on product labels.
- Prepare product technical documentation.
- Establish proper recall and reporting mechanisms.
Non-compliance risks Products without an EU Responsible Person cannot be sold in the EU and may be intercepted by customs or E-commerce platforms.
Prepare Early for
Smooth Business Expansion into Europe
Work with professional EU representatives, tax advisors, and compliance consultants, and stay updated on regulatory changes to prevent potential violations.
At Engycon, we specialize in providing logistic solutions, indirect representation for imports into the EU, and GPSR consulting/representation.
Acting on behalf of business outside the EU, we ensure seamless and compliant access to the European market. With our office in Germany, we are well-positioned to support your entry into European marketplaces.
We also offer a first-time free consultation and can provide tailored solutions to address your specific compliance and market-entry challenges, helping you expand your business into Europe successfully.
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