How a UK company delivers DDP in the EU Post-Brexit

From chaos to control : a case study on how a UK company beat Brexit intricacies

When Brexit became a reality, many UK-based companies were left facing serious questions on how to keep smooth trade with their European customers. At that time, it was not unusual to discuss such challenges with companies having up to 80% of their turnover coming from the European Union (EU). To them, Brexit potentially meant increasing delivery costs, Customs complications, longer delivery times, a significant risk of customer dissatisfaction and, of course, a major loss in revenue. The stakes were extremely high. A few years later, UK companies are still facing the same challenges having to think outside the box to guarantee clients’ satisfaction.
This article focuses on how a UK company selling Custom-made labels manufactured on-demand in the UK managed to overcome these challenges by implementing a scalable, Brexit-proof VAT and Customs strategy with Easytax’s support.

A UK company caught between rising costs and clients’ expectation

The company is a UK-based manufacturer and seller of custom-made labels with a thriving ecommerce business targeting both business and private consumers across the UK but mainly within the European Union. With more than four-fifths of sales carried out in the EU, the post-Brexit landscape caused significant operational and strategic challenges to the company. As products are custom-made, it was not an option to store goods within the EU to ease operations.

From the beginning, the company’s strategy was clear and Customs obligations could not simply be shifted to clients. It was out of question to leave EU customers having to deal with VAT, Customs duties or any additional charges upon delivery. Uncertainty about delivery timelines and costs further threatened competitiveness. It quickly became clear that a new, compliant and customer-orientated solution was required. A strategy that would allow the company to continue selling across the EU without putting the Brexit-related burden on customers.

The main objective was clear: regain control over delivery while ensuring VAT and Customs compliance. The company agreed that selling using a “Deliver Duty Paid” incoterm (DDP) was key. This way, the company was able to anticipate Customs and VAT obligations, ensure that all products were cleared smoothly, delivered efficiently and arrived at final destination without additional costs or surprises for the customer. The company’s solution had to adapt to shipping in all EU countries to both business and private consumers.

From strategy to execution: implementing a Brexit-proof VAT and Customs solution

With Easytax’s guidance, the company adopted a three-pillar solution designed to centralise Customs clearance processes, ensuring VAT compliance while keeping VAT obligations to a minimum. Let’s have a closer look at each part of the solution.

• Registering for VAT purposes in France : this allowed the company to import goods into the EU via France and complete Customs clearance before dispatching orders to end customers across the EU.
  By consolidating the import process at one point of entry, the company was able to eliminate delivery uncertainties and ensure that no additional Customs formalities would be imposed on the recipients — whether businesses or private consumers.
  France was also chosen as a point of entry to match the company’s logistics requirements but also to ease the company’s cash flow as import VAT is no longer paid at the time of clearance when importing into France.
• Activating the OSS EU scheme : the company’s French VAT registration ensures VAT compliance on French sales and on EU B2B sales. However, when goods are cleared in France and ship to private consumers within the EU, the French VAT registration is not enough.
  As per the 2021 ecommerce reform, VAT is due in the country of destination for B2C sales. The One-Stop-Shop (OSS) EU scheme greatly simplified the administrative burden and offered a way to avoid multiple VAT registrations across the EU — a particularly valuable advantage for companies shipping to customers in several countries.
• Activating the IOSS scheme : finally, the company opted to register for the Import One-Stop Shop (IOSS) to cover low-value shipments below €150 aimed for EU consumers.
  This allowed the company to collect VAT directly at the point of sale and benefit from accelerated Customs clearance, avoiding additional fees or delays for the buyer. The IOSS was important for preserving a smooth customer experience for small online orders, where unexpected charges at delivery can severely affect satisfaction and conversion.

The outcome: smoother operations, better service, full compliance

The implemented solution has allowed the company to continue serving its EU clientele with confidence, despite the complex post-Brexit environment. Goods are imported into France, cleared through Customs efficiently, and then dispatched to their final destination without further Customs intervention. VAT on B2C sales is managed via OSS and IOSS, ensuring a fully compliant, transparent, and scalable approach.

Customers, whether businesses or individuals, continue to receive their orders as they did before Brexit — promptly, without hidden costs, and without needing to navigate Customs bureaucracy. Internally, the company benefits from a streamlined and centralised VAT and Customs process, reducing administrative friction and supporting long-term growth in the EU market.

Lessons learned : adapting to Brexit with the right partners

Brexit has forced many UK businesses to rethink how they sell to EU clients. No matter if companies sell to private consumers or to business customers, the combination of VAT compliance, Customs rules, incoterms and customer expectations can quickly become overwhelming. There are many solutions that can be used for companies depending on the outcomes they want to reach. With the right strategy and expert support, these challenges can be transformed into opportunities.

This client’s experience illustrates how a tailored approach — involving local VAT registration, the use of OSS and IOSS schemes, and a clear focus on the customer experience — can make cross-border trade not only viable, but also sustainable and scalable. Easytax was proud to contribute its expertise and help turn post-Brexit uncertainty into a competitive advantage.