EU responsible person or your own EU entity: which one suits your sales volume

A seller established outside the European Union can meet the responsible person requirement in two ways. It can appoint an authorised representative established in the EU, or it can set up its own entity in the EU. Both options are allowed.

Your choice usually depends on how much business you already do in Europe.

What the regulation requires

The General Product Safety Regulation (GPSR) has applied since 13 December 2024. It applies to every consumer product sold on the European market, in a physical shop, a webshop or a marketplace. Manufacturers, importers, distributors, fulfilment service providers and the marketplaces themselves must all follow it.

For each product placed on the EU market, a party established in the EU must be responsible for it. This party is the manufacturer, if the manufacturer is in the EU. Otherwise it is the importer that brings the goods into the EU, or an authorised representative appointed for this purpose. The name and contact details of this party are on the product or its packaging and in the online listing.

The tasks of the responsible person are in Article 16. The responsible person checks that the technical documentation and the risk assessment exist and are up to date. It keeps that documentation available for ten years. It is the point of contact for market surveillance authorities and cooperates when corrective action is needed. In a recall, the consumer can choose from at least two of these remedies: repair, replacement and refund.

Option one: an appointed representative

A third party established in the EU accepts a written mandate, has your technical documentation and serves as the contact point for market surveillance authorities. Their name and address appear on your packaging and in your listings.

Sellers often choose this option when they test the European market or have a narrow product range. They also choose it when European sales are a small share of their turnover. A mandate is quick to arrange and needs little work afterwards.

Your compliance depends on the service provider continuing its service and staying established in the EU. Your technical files are with the provider. The mandate is only for the responsible person role. You arrange other obligations yourself, such as import VAT, registration for extended producer responsibility (EPR) in each Member State and your commercial contracts.

Option two: your own Dutch entity

With a Dutch BV, the role is inside your own group. The BV acts as importer of record and keeps the technical files under your control. It answers to the authorities in your own name.

The same BV can also arrange things that are outside the scope of a mandate:

• Article 23 import VAT deferment. You declare import VAT in the periodic VAT return and deduct it in the same return.
• Registrations for extended producer responsibility (EPR) under the Packaging Regulation, arranged for each Member State from one company.
• A European VAT number and EORI number. You use these numbers for invoicing, customs and marketplace checks.
• A European counterparty for retailers and distributors. Commercial negotiations with them are often shorter.

How sellers usually decide

Ask yourself three questions.

How large is Europe in your plan? If you are still testing European sales, a mandate is usually enough. If Europe is becoming a core market, your own entity is usually the better choice.

How many EU obligations do you have? If you only need to meet the GPSR, a mandate can be enough. You may also have packaging EPR, import VAT on regular shipments and European contracts. In that case, you can arrange all of these together with one entity.

Where do you want the technical files? Some businesses are comfortable with documentation held by a service provider. Others treat product documentation as core intellectual property and prefer it inside the group.

Many sellers start with a mandate while they build up demand in Europe. When their European sales are large enough, they set up their own entity. If you plan the second step when you arrange the first one, the change later takes less work.

Setting up in the Netherlands

A Dutch BV is incorporated by notarial deed and registered with the Chamber of Commerce. Your company has the shares, and incorporation is done from abroad by power of attorney and entirely in writing. After registration the BV obtains its VAT number and EORI number and applies for the Article 23 licence.

You can read more about the EU responsible person under the GPSR and about fiscal representation and Article 23.

Frequently asked questions

Is an authorised representative enough for GPSR compliance?

Yes, for the responsible person requirement. An authorised representative established in the EU, appointed by written mandate, meets this requirement. You arrange other obligations separately, such as import VAT, extended producer responsibility in each Member State and commercial contracts.

When is your own EU entity worthwhile?

For most sellers, this is when Europe becomes a core market. Other reasons are more EU obligations than the GPSR alone, or the wish to keep the technical documentation inside your own group.

Can a seller switch from a representative to its own entity?

Yes, and many sellers do. They start with a mandate while they build up demand in Europe. When their sales are large enough, they set up their own entity. If you plan the second step when you arrange the first one, the change later takes less work.

What does a Dutch BV add beyond the responsible person role?

A Dutch BV can get the Article 23 import VAT deferment licence, a European VAT number and an EORI number. It can arrange the registrations for extended producer responsibility (EPR) under the Packaging Regulation for each Member State. It is also a European counterparty for retailers and distributors.