[Event Recap] EU Tax Changes 2026 for Vietnamese Sellers

For Vietnamese ecommerce and print-on-demand sellers, expanding into Europe brings access to a large customer market, but it also creates practical questions around tax reporting, EU VAT, customs declarations, fulfillment costs and payment conversion. A product may sell well and still deliver a much lower margin than expected when duties, processing fees or unexpected delivery charges are not included in the original calculation.

These challenges were the focus of a recent webinar hosted by merchOne, bringing together specialists from EcomLegal, Asendia, PayPal and merchOne to discuss what Vietnamese cross-border sellers should understand before entering or scaling in the European market.

Rather than discussing tax, logistics, production and payments as separate topics, the speakers followed the complete journey of an international order, from how revenue may be reported in Vietnam to how a product is classified, manufactured, shipped, paid for and delivered to an EU customer.

This event recap summarises information and interpretations shared by the speakers during the webinar and should not be treated as individual tax, legal or customs advice. Requirements may vary depending on the seller’s legal structure, revenue, products, sales channels, fulfillment route and destination market.

Disclaimer: This article is provided for general informational and educational purposes only and does not constitute legal, tax, accounting, financial, customs, intellectual-property, regulatory or other professional advice.
The information may not be complete or applicable to your circumstances. Requirements vary by jurisdiction, business structure, transaction, product and sales channel, and may change over time. Third-party products, services, fees, policies and availability are subject to the relevant provider’s current terms.
Readers should verify current requirements with the relevant authority, platform or provider and obtain advice from a suitably qualified professional before making legal, tax, financial or compliance decisions. Nothing in this article modifies any applicable agreement or service terms.

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Quick Answer: What Should Vietnamese Sellers Prepare for When Selling to the EU?

Vietnamese sellers should review their business structure, tax records, product classifications, HS codes, VAT responsibilities, fulfillment locations and payment experience before expanding into Europe. The webinar highlighted that sellers should calculate the full landed cost of each order rather than comparing production and shipping prices alone, while also considering whether local EU production and prepaid-duty shipping models can reduce customs friction and unexpected customer charges.

Key Takeaways from the Webinar

• Tax, customs, production, logistics and payments should be planned together, because a decision in one area can affect margin, delivery speed and customer satisfaction elsewhere.
• Vietnamese sellers should keep complete records, including marketplace reports, PayPal statements, bank transactions, supplier invoices and shipping documents.
• EU VAT and customs duty are not the same, and sellers may need to consider both depending on where products are manufactured and how they enter the European Union.
• More detailed electronic customs information may be required, including product materials, country of origin, declared value and an appropriate HS code.
• Producing orders inside the EU can reduce exposure to import-related delays and charges compared with shipping every individual order from outside the region.
• DDP shipping can help reduce unexpected charges during delivery, but it still depends on accurate product and customs data.
• PayPal Checkout, Buy Now Pay Later and eligible post-purchase payment solutions may help reduce checkout friction and support higher-value purchases.

Tax Responsibilities for Vietnamese Cross-Border Sellers

Lê Thanh Tùng, Founder of EcomLegal, opened the discussion by explaining the difference between value-added tax, personal income tax, corporate income tax and customs duty, which are often discussed together even though they apply to different parts of a seller’s operation.

For Vietnamese sellers earning revenue from overseas customers, the appropriate tax treatment may depend on whether the business operates as an individual, household business or registered company, as well as its annual revenue, payment flow, ecommerce platforms and supporting documentation.

The speakers discussed tax rates and filing approaches that may apply to certain sellers, but the wider recommendation was to avoid selecting a business structure based only on the lowest visible tax percentage. Sellers should also consider accounting costs, administrative work, invoicing requirements, legal responsibility and the way money moves between the store, payment provider, bank and fulfillment partner.

A suitable structure should make it clear who owns the store, which person or company receives the revenue, who pays suppliers, who issues invoices and who is responsible for declaring the income. When personal and company transactions are mixed without a clear operational reason, the business may become more difficult to explain and manage.

The webinar also addressed possible changes affecting individual ecommerce businesses in Vietnam from 2026 onward. Because registration requirements, thresholds and reporting methods may change, sellers whose revenue is growing should review their structure with a qualified adviser before the business becomes too complex to reorganise efficiently.

Why Documentation Matters

One of the most practical recommendations from the session was to maintain complete, consistent and accessible transaction records.

Vietnamese sellers may need to demonstrate that their revenue came from international transactions and that products were sold to customers outside Vietnam, particularly when applying the relevant tax treatment or supporting VAT and export-related claims.

Useful documents may include:

• Shopify, Amazon or other marketplace reports
• PayPal statements and transaction exports
• Bank statements and international payment records
• Supplier, production and fulfillment invoices
• Shipping and export documentation
• Customer destination and order information
• Contracts with production, logistics and technology partners

Rather than collecting these documents only when a tax authority asks for them, sellers should build a monthly record-keeping process that stores revenue reports, payment data, supplier expenses and shipping records in one organised system.

This becomes especially important when a seller operates several stores, receives money in multiple currencies or uses more than one fulfillment provider, because reconstructing historical transactions after several years can be difficult and time-consuming.

EU VAT and Customs Duty Are Not the Same

Another important part of the webinar was the distinction between EU VAT and customs duty.

VAT is generally a consumption tax applied to goods and services sold to customers, while customs duty may apply when physical products enter the European Union from a country outside the region.

Depending on the product and fulfillment model, a seller may need to consider:

• The VAT rate in the customer’s destination country
• Whether VAT is collected during checkout
• Whether the order qualifies for IOSS
• The declared value of the shipment
• The correct HS code for the product
• Potential customs duty and carrier-processing fees
• Who acts as the importer of record
• Whether duties are prepaid or collected from the customer

The speakers emphasised that these questions should be addressed before a product is listed, because they affect pricing, checkout configuration, shipment data and the customer’s final delivery experience.

Customs Changes for Low-Value Goods

The webinar discussed upcoming changes that may affect lower-value goods entering the European Union, including the planned removal of the customs-duty exemption for goods valued below €150 and a proposed flat duty charge calculated according to product category.

As explained during the event, a possible charge of approximately €3 per product category could have a meaningful impact on inexpensive items and mixed-product bundles.

For example, an order containing a canvas, mug and apparel product may involve three different HS classifications, which could make it more expensive to process than an order containing three units of the same product.

This is particularly relevant for print-on-demand sellers, where the retail price of an individual item may be relatively low and even a small fixed fee can remove a significant part of the expected profit.

The speakers therefore recommended calculating the full landed cost of an order rather than comparing production and shipping prices alone.

Full landed cost = product cost + production + packaging + shipping + VAT + customs duty + processing fees + payment costs + expected returns or reprints.

This calculation should be reviewed at the product and bundle level, especially when several different product types are shipped together.

More Detailed Product Data and HS Codes

The speakers also highlighted the growing importance of providing accurate electronic shipment data before goods enter the EU.

General descriptions such as “gift,” “print,” “decor” or “personalised product” may not contain enough information for customs authorities to classify an item correctly.

Shipment information may need to include:

• A detailed and accurate product name
• Material composition
• The product’s intended use
• Country of origin
• Quantity and declared value
• A sufficiently detailed HS code

For example, the description “wall art” could refer to a paper poster, textile canvas, aluminium print, acrylic panel or framed decorative item, and each product may require a different customs classification.

The same principle applies to apparel, drinkware and home décor, because products that appear similar from a marketing perspective can be treated differently by customs depending on their material and construction.

Incomplete or inaccurate information may lead to additional inspections, delayed clearance, reassessment of duties or unexpected customer charges. Product data management should therefore be treated as a central ecommerce responsibility rather than a task left entirely to the shipping carrier.

The Role of IOSS

The Import One-Stop Shop, commonly known as IOSS, was discussed as a system that can simplify VAT collection for eligible low-value imported goods by allowing VAT to be collected at the point of sale.

This can reduce the likelihood of a customer being asked to pay VAT when the package arrives, but IOSS does not remove the need for accurate customs declarations, product descriptions and HS codes.

Sellers should therefore confirm whether their marketplace, fulfillment provider or logistics partner supports IOSS, which orders are eligible and which party is responsible for submitting the required information.

Unexpected Fees Can Damage Conversion

Taxes and customs charges are not only compliance issues; they also influence how customers experience the store and brand.

When a customer sees an attractive product price but later discovers additional taxes, shipping fees or import charges, the final cost may feel significantly higher than expected, which can lead to cart abandonment, refused packages, customer-support complaints and negative reviews.

Even when the additional fee is collected by a customs authority or shipping carrier, the customer may still believe that the seller failed to communicate the total cost clearly.

The webinar therefore encouraged sellers to explain whether taxes are included in the displayed price, show delivery charges before the final checkout stage and state clearly whether additional import fees may apply.

A slightly higher but transparent final price may create a better customer experience than a lower advertised price followed by unexpected costs during checkout or delivery.

DDP Shipping and a More Predictable Delivery Experience

Dương Nguyễn from Asendia discussed Delivered Duty Paid, commonly known as DDP, as one possible way to make cross-border delivery more predictable.

Under a DDP model, applicable duties and import charges are generally calculated and collected before the package reaches the customer, helping reduce the risk of an unexpected payment request during delivery.

This may help sellers reduce refused packages, delivery interruptions and customer complaints, while also giving customers a clearer understanding of the total amount they will pay.

However, DDP still depends on accurate product information. If the product description, origin, value or HS code is incorrect, the estimated duty may also be inaccurate and the shipment may still be reassessed or delayed.

Before using a DDP service, sellers should confirm the supported destinations, required data, calculation method and responsibility if customs authorities dispute the product classification.

Why Local EU Production Can Reduce Complexity

One of the strongest operational themes of the webinar was the value of manufacturing products inside the European Union.

When a product is manufactured outside the EU and shipped directly to a European customer, the package may need to cross an external customs border and become subject to declarations, duties, processing charges and longer delivery times.

When the same order is produced within the EU and delivered to another EU member state, many of these import-related steps may be reduced or avoided.

merchOne operates production facilities in Germany, Latvia and Poland, together with a production presence in the United States, allowing eligible products to be manufactured closer to the end customer.

For sellers targeting Europe, local production may provide several practical benefits:

• Reduced exposure to import-related customs charges
• Shorter delivery routes within Europe
• Faster handling of replacement and reprint orders
• Fewer customs-related delivery interruptions
• More predictable fulfillment during seasonal peaks
• The ability to enter European markets without purchasing inventory or operating a local warehouse

Local production does not remove every VAT or compliance responsibility, but it can simplify the physical movement of goods and reduce the uncertainty associated with importing every individual customer order from outside the EU.

Product Selection for the European Market

The webinar also introduced merchOne’s production capabilities across categories including canvas, posters, framed wall art, home décor, apparel and personalised products, together with planned additions such as photobooks and calendars.

These categories may be particularly relevant during the Q4 gifting season, but sellers should still evaluate each product based on search demand, production time, shipping size, damage risk, personalisation potential and final margin.

A premium wall art product may support a higher retail price but also involve greater shipping and replacement costs, while a smaller product may be easier to deliver but face stronger price competition.

The most effective catalogue is not necessarily the largest one, but the one in which demand, pricing, production and delivery expectations are properly aligned.

PayPal Checkout and Payment Flexibility

Nam Ngô from PayPal discussed how the payment experience can influence conversion, particularly when the final order value increases because of tax, shipping or premium product options.

The session covered three PayPal capabilities:

• PayPal Checkout
• Buy Now Pay Later
• Reference Transactions

PayPal Checkout can provide customers with a familiar payment method when they may be hesitant to enter card information on a store they have not previously used, while guest checkout may be available in eligible situations.

Buy Now Pay Later may be relevant for premium wall art, personalised gifts, home décor and multi-product bundles, because eligible customers can see that instalment options may be available instead of paying the complete amount at once.

The PayPal presentation included performance figures suggesting that PayPal-supported checkout experiences can contribute to strong completion rates and that flexible payment options may support higher average order values, although actual results will vary depending on the store, audience, market and implementation.

Reference Transactions were also discussed as an option for certain post-purchase, recurring or upsell payment flows without requiring customers to enter their payment details again.

Because availability may differ by account and ecommerce platform, sellers should confirm eligibility and technical requirements directly with PayPal before implementing a specific payment flow.

Payment Messaging Should Appear Before Checkout

One useful point from the session was that customers often decide whether a product feels affordable before they reach the final payment page.

For that reason, PayPal or Pay Later messaging may be more effective when displayed on the product page, cart page or relevant campaign landing page, particularly for products with a higher selling price.

This gives customers more context while they are still considering the purchase, but the payment message should remain secondary to the product and should not overwhelm the page with financial information.

The goal is to make the buying process clearer and easier, not to add another layer of complexity.

What Sellers Should Review Before Q4

The period before Q4 is the best time to review tax, customs, fulfillment and checkout systems, because once order volume increases, sellers have much less time to correct structural problems.

Review the Business Structure

Confirm which person or legal entity owns the store, receives payments, pays suppliers and reports the revenue.

Organise Financial Records

Store marketplace reports, PayPal statements, bank records, invoices and shipping documents in a consistent monthly system.

Audit Product Data

Review product names, materials, countries of origin, declared values and HS codes for products that may cross an external EU border.

Calculate the Full Landed Cost

Include production, packaging, shipping, VAT, customs duty, processing fees, payment costs and the expected cost of returns or reprints.

Compare Fulfillment Locations

Review whether each product should be imported from outside the EU or produced locally within Europe.

Clarify Customs Responsibilities

Understand whether the seller, marketplace, fulfillment provider, logistics company or customer is responsible for VAT collection, customs declarations and import charges.

Test the Checkout Experience

Review the store on mobile and desktop, including tax messaging, shipping-cost visibility, guest checkout and available payment options.

Contact Partners Before the Peak

Speak with tax advisers, payment providers, producers and logistics companies before seasonal order volume increases rather than waiting until shipments are delayed or customers begin reporting unexpected charges.

The Complete Order Journey Needs to Work Together

The broader lesson from the webinar was that strong products and effective marketing are not enough on their own.

A sustainable cross-border business also needs an appropriate tax structure, accurate product data, transparent pricing, reliable fulfillment and a payment process that customers understand and trust.

When one part of the journey is poorly prepared, the effect often appears elsewhere. An incorrect HS code may cause a customs delay, the delay may result in a missed delivery date, and the missed delivery date may lead to a refund, replacement order or negative review.

By contrast, when tax, production, logistics and payment decisions are planned as one connected system, sellers gain more control over their costs, delivery performance and customer experience.

For Vietnamese businesses expanding into Europe, this operational discipline can become an important competitive advantage, because sellers are not competing only on designs or product prices, but also on reliability, transparency and the ease of completing and receiving an order.

Continuing the Conversation

The webinar was designed to help sellers understand the main questions they should address rather than provide one universal answer for every ecommerce business.

Participants were encouraged to contact the relevant speakers and teams for further support with Vietnamese tax reporting, EU VAT and customs, product classification, DDP shipping, PayPal integrations, European production and print-on-demand fulfillment.

The webinar recording and supporting materials will also allow attendees to revisit the information and consider how it applies to their own stores, products and target markets.

Europe remains an attractive market for Vietnamese ecommerce sellers, but sustainable growth will depend on accurate records, clear pricing, reliable product data and a fulfillment model that reduces unnecessary customs and delivery friction.

Frequently Asked Questions

What taxes should Vietnamese sellers consider when selling to EU customers?

Depending on the business model, sellers may need to consider income-related taxes in Vietnam, EU VAT, customs duty and logistics-processing fees. The exact responsibilities vary according to legal structure, revenue, sales channel, product type, fulfillment route and customer destination.

What is the difference between VAT and customs duty?

VAT is generally a consumption tax applied to the sale of goods and services, while customs duty may apply when physical products enter the EU from a non-EU country. An order may still be subject to VAT even when no customs duty is charged.

What is IOSS?

The Import One-Stop Shop is an EU system that can simplify VAT collection for eligible low-value imported goods by allowing VAT to be collected at the point of sale, although accurate product and customs information is still required.

What is DDP shipping?

Delivered Duty Paid generally means that applicable duties and import charges are calculated and handled before the product reaches the customer, reducing the likelihood of an unexpected payment request during delivery.

Why are HS codes important for print-on-demand sellers?

HS codes classify products for customs purposes and can influence duties, documentation requirements and clearance. Sellers should classify products according to their actual materials, construction and intended use rather than using broad descriptions such as “gift” or “wall art.”

Can local EU production reduce customs costs?

Producing and shipping an order within the EU may reduce the import-related customs procedures that apply when goods are sent from outside the region, although VAT and other compliance obligations may still apply.

How can PayPal support conversion?

PayPal can provide a familiar checkout method, guest checkout in eligible situations and Pay Later options for qualifying customers, which may reduce payment friction and make higher-value orders more accessible.

How should sellers prepare for Q4?

Sellers should review their business structure, financial records, product classifications, HS codes, fulfillment locations, shipping arrangements, payment options and full landed costs before seasonal order volume increases.

Prepare for Sustainable Growth in Europe

Selling to the European market requires more than finding a popular product or running an effective advertising campaign. Sellers need to understand the true cost of every order, maintain reliable records, provide accurate customs data and choose production, logistics and payment partners that can support a consistent customer experience.

By reviewing these areas before the next seasonal peak, Vietnamese sellers can reduce operational risk, protect their margins and build a stronger foundation for long-term cross-border growth.