e-commerce VAT

compliance made simple

If you sell goods online and fit into one or more of the below categories, you will be legally obliged to register for VAT in Europe:

Amazon FBA

The VAT legislation is very clear when it comes to goods being delivered or “fulfilled” from a location in an EU country. If you store your inventory in a distribution centre and you fulfil online sales orders from this place, the sales are immediately taxable in the country where the warehouse is based. There is no revenue threshold – as soon as you make a sale you are obligated to register and start charging VAT on those sales. Since Amazon will fulfil your goods from their fulfilment centres in 7 different EU countries, by signing up to their Pan-European solution you will need to be registered immediately. Read More ...

Store Goods in Europe

Having a local distribution option significantly improves the buying experience of your European customers – but it does create immediate VAT obligations. If you export stock to be stored in a third party distribution centre, when you fulfil your online orders from this inventory the “place of supply” is considered to be that country and therefore the sale is VAT-taxable locally. There is no revenue threshold for this, so you need to register for VAT in every country where your goods are delivered from prior to making the first sale. Read More ...

Deliver Directly to EU Customers

When the flow of goods for your online sales is from one EU country to another, special VAT legislation regarding “Distance Selling” applies. Therefore, if you have inventory in an EU country and deliver to non-business consumers in other EU countries, it is important to monitor the total value of these sales before registration thresholds apply. In most of the EU countries it is approximately €35,000 – and once this is breached you are obligated to register for VAT in the destination country. Read More ...

Once registered, sellers must add VAT to the sales price of their products and comply with all local compliance and reporting requirements, specifically filing periodic VAT returns.

Our Comprehensive e-Commerce VAT Solution

VATGlobal offers a comprehensive e-commerce VAT solution, including: