How is VAT applied to my EU-bound orders?

VAT (Value Added Tax) applies to all EU-bound orders processed by Printful. The rate you're charged depends on where your order is fulfilled, where it's shipped, and whether you're VAT-registered in the EU. This article explains how VAT is applied in each scenario.

Why does VAT apply to my orders?

Printful is registered as a VAT payer in the EU and must comply with EU VAT laws. These laws ensure VAT is properly collected on cross-border sales within the EU and on imports from outside the EU.

Since July 1, 2021, the EU has used two VAT systems for cross-border sales:

• One Stop Shop (OSS): For sales between EU countries
• Import One Stop Shop (IOSS): For imports into the EU from outside the EU

You can learn more about these systems here.

What VAT rate will I be charged — most common scenarios

I'm not VAT-registered in the EU, and my order is fulfilled in Latvia or Spain: Printful charges the VAT rate of the destination country — the EU country your customer is in.

I'm not VAT-registered in the EU, and my order is fulfilled outside the EU (e.g., the US):

• If the order value is under €150, Printful charges the destination country's VAT rate via the IOSS system.
• If the order value is over €150, Printful charges 0% VAT. Note that other import duties may still apply (see the customs duty section below).

I'm VAT-registered in Latvia, and my order is fulfilled in Latvia: Printful charges Latvia's VAT rate, regardless of which EU country the order is shipped to.

I'm VAT-registered in Latvia, and my order is fulfilled in Spain:

• If the order ships to Spain: Printful charges Spain's VAT rate.
• If the order ships to any other EU country: Printful charges 0% VAT.

I'm VAT-registered in Spain, and my order is fulfilled in Spain: Printful charges Spain's VAT rate, regardless of which EU country the order is shipped to.

I'm VAT-registered in Spain, and my order is fulfilled in Latvia:

• If the order ships to Latvia: Printful charges Latvia's VAT rate.
• If the order ships to any other EU country: Printful charges 0% VAT.

I'm VAT-registered in another EU country (not Latvia or Spain):

• If the order ships to Latvia or Spain (the fulfillment country): Printful charges that country's VAT rate.
• If the order ships to any other EU country: Printful charges 0% VAT.

Important: New customs duty rules for shipments from outside the EU (from July 1, 2026)

As part of the EU's customs reform, the €150 customs duty exemption for low-value imports has been abolished. This is separate from VAT and affects the total cost of orders fulfilled from outside the EU (e.g., Printful's US facilities).

What changes:

• July 1, 2026 – June 30, 2028 (transitional period): A flat customs duty of €3 per item applies to shipments with an intrinsic value under €150, provided VAT is declared via IOSS. If IOSS is not used, standard customs tariff rates apply.
• From July 1, 2028 onwards: Full customs duties apply to all imported goods regardless of value, as part of the broader EU Customs Reform.

What stays the same: The VAT treatment described above is unchanged. The €150 threshold still determines which VAT rate applies. The €3 flat fee is a customs duty, not a VAT charge — but it does increase the total landed cost for EU customers receiving shipments from outside the EU.

What VAT applies to services like digitization?

VAT also applies to the services Printful provides, including digitization for embroidery files. When digitization is added to an order, VAT is charged on the entire order amount — product, shipping, and digitization combined.

How does VAT work if I sell on a marketplace like Etsy?

If you sell on a marketplace like Etsy, the marketplace collects VAT from your customer. However, Printful still charges VAT on your order, because these are two legally separate transactions:

1. You buy a product from Printful (Printful → you)
2. Your customer buys a product from you (you → your customer)

Each transaction is subject to its own VAT rules. This applies to both EU and UK orders — the difference is which VAT rules apply:

• EU-bound orders: The rules described in this article apply.
• UK-bound orders: The same marketplace VAT logic applies, but UK VAT rules apply instead.

Are there any upcoming changes to EU VAT rules?

Yes. The EU's VAT in the Digital Age (ViDA) package was formally adopted in April 2025 and introduces phased changes.

From July 1, 2028, deemed supplier rules for platforms will come into effect, and the One Stop Shop (OSS) scheme will be extended to cover transfers of own goods and goods with installation. This may affect how VAT obligations are assigned for marketplace sales in the future.

Additional resources

• How to submit your VAT ID to Printful
• How to configure VAT on your platform or marketplace
• EU standard VAT rates
• VAT in the Digital Age (ViDA)

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