Selling your app to EU customers? The €10,000 VAT rule explained
Ship ItChecked against the official sourceNot legal advice.
Source checked 4 Oct 2026 · Published 23 Oct 2026 · Last reviewed 23 Oct 2026 · By Ctrl+Z Therapy (how we test)
The short answer
In the EU, electronic services sold to consumers are always taxed in the customer's country. The EUR 10,000 threshold only helps a seller established in just one EU country. If your business is outside the EU with no EU fixed establishment, the Non-Union One-Stop Shop lets you register in one EU country and submit one VAT return every quarter. Or you can use a merchant of record that handles the tax for a fee.
What to do
- Check where your business is established: in one EU country, or outside the EU with no EU fixed establishment.
- Outside the EU? With the Non-Union One-Stop Shop scheme, choose any one EU country to register for OSS and submit a quarterly VAT return.
- Don't want to file VAT yourself? Compare merchant of record fees: Stripe Managed Payments is 3.5% per transaction on top of Stripe's Payments fees, and Lemon Squeezy lists 5% + 50¢.
- Ask a tax advisor about your case.
Good to know
- This covers sales to consumers only. Sales to businesses and UK VAT are not covered here.
Source
- Your Europe: Cross-border VAT
- European Commission: One-Stop Shop
- Your Europe: VAT One-Stop Shop
- Stripe: Pricing
- Lemon Squeezy: Pricing
Checked on 4 Oct 2026. Prices, limits and settings change, so check the source before you rely on them. Not legal advice.