In recent years, cross-border eCommerce has become a new engine for global trade. According to Statista data projections, the European eCommerce market size will reach US$673.82 billion in 2025, and is expected to reach US$841.14 billion by 2030, with an annual growth rate of 4.54%. European consumers’ acceptance of Asian products continues to rise, bringing unprecedented opportunities for enterprises. However, to successfully enter this vast market, “compliance” is the first threshold, and EORI (Economic Operators Registration and Identification Number) and VAT (Value Added Tax) are two indispensable keys. In this edition of e+Solutions eCommerce Logistics Guide, we’ll introduce the importance of EORI and VAT for eCommerce import and export to the European market, and explain the relationship between the two.
EORI: The “EU Identity Card” for Import and Export
EORI (Economic Operators Registration and Identification Number) is a unique identification number assigned by the EU to all import and export enterprises to monitor cargo flow and customs clearance processes. Regardless of whether the enterprise is established within the EU, as long as it involves the import and export of goods to the EU, it must apply for an EORI number. The function of EORI is to assist customs in tracking import and export activities, ensuring smooth customs clearance of goods and avoiding delays or detention. After registration, the number can be used throughout the EU and is recognised by customs authorities in all member states.
The application process is relatively simple. Enterprises can choose any EU member state as the registration location and apply online through the customs website of that country. Generally, they need to submit company registration documents, tax information, proof of import and export business, etc. The application is free of charge, and the processing time usually ranges from a few days to a few weeks.
For cross-border eCommerce, EORI is like a “clearance passport” that ensures smooth logistics processes for goods within Europe and is an essential basic condition for every seller.
VAT: The “Tax Pass” for Sales in Europe
VAT (Value Added Tax) is a consumption tax levied by the EU on goods and services. Since 1 July 2021, the EU has abolished the tax exemption threshold for items below €22. Regardless of whether shipped through eCommerce platforms or local warehousing, all goods imported into the EU are subject to value-added tax. For non-EU enterprises, the method of applying for a VAT number varies depending on the value of the goods:
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High-Value Goods |
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Low-Value Goods |
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Correct declaration and payment of VAT is key to compliant eCommerce operations; otherwise, enterprises may face issues such as inability to obtain tax refunds, fines, cargo detention, or sales restrictions. It is noteworthy that VAT rates and regulations vary across European countries. For example, the standard tax rate in Germany is 19%, in the Netherlands is 21%, and in Luxembourg is only 17%. Therefore, before entering a specific market, enterprises should fully understand the local tax system and, if necessary, hire professional tax consultants for assistance.
The Relationship Between EORI and VAT
EORI and VAT complement each other and perform their respective roles in the European trade system. In simple terms, EORI is the “identity card” for customs clearance, while VAT is the “pass” for tax declaration. In most EU countries, the EORI number is usually generated based on the VAT number, for example, in the format “country code + identification code (up to 15 alphanumeric characters)”.
It should be noted that since Brexit, the UK operates EORI and VAT systems independently, and enterprises must apply to the UK authorities separately and cannot use EU numbers.
ePlus European Cross-Border eCommerce Logistics Service
In the process of entering the European market, EORI and VAT are just the starting point. The real challenge lies in how to integrate import and export, warehousing, logistics, and customs declaration processes to ensure efficient and compliant operations. ePlus cross-border eCommerce logistics services are designed for this purpose. In addition to having self-operated overseas warehouses in the Netherlands and the UK, ePlus can also assist clients in applying for European EORI and VAT numbers (generally taking about 3 to 4 weeks), and provide comprehensive support including import and export procedures, air and ocean freight, warehousing, and fulfillments. Through ePlus‘ one-stop service, enterprises can quickly complete their European market layout, focus on brand management and sales strategies, and easily seize the wave of European eCommerce growth.
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Encountering any e-Commerce logistics troubles? e+Solutions can help you! From goods storage and management, handling and packaging, to arranging last-mile, we can meet all your logistics needs while allowing you to operate an online store easily
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