
EU VAT Guide for E-commerce 2026: When to Register & How to File Returns
European VAT is the most frequently overlooked and error-prone tax concern for numerous Chinese cross-border sellers. The misconception that โa China-registered company is exempt from European taxesโ carries major risks. VAT liability is defined by sales activities and inventory storage locations, rather than a companyโs registration jurisdiction. This article elaborates on the core principles of European VAT, registration triggering thresholds, distinctions between IOSS and OSS, official invoicing specifications, and standard filing procedures, guiding sellers to confirm whether their business is subject to VAT compliance obligations.