Selling goods online to customers in other European countries will require compulsory VAT registration if your sales exceed certain thresholds which differ from country to country. SIMPLYVAT.com aim to help you with VAT registration in any relevant country as well as collating the required data from you and submitting it on your behalf in the relevant local language.
With marketplaces such as eBay and Amazon constantly encouraging cross border trade and making it easier than ever before, we asked Claire from SIMPLYVAT.com to explain more about out VAT obligations:
Selling Goods Online Abroad?
If you sell goods to consumers in Europe you need to comply with the EU distance selling VAT rules. Different countries have different VAT registration thresholds, return times and a myriad of variations in what does and doesn’t attract taxes such as VAT.
As an online retailer, you need to be aware and you need to be acting correctly. Even if you use the marketplaces, like Ebay and Amazon, to sell your goods – once your sales exceed the VAT registration threshold in any EU country (see link below for full list of thresholds) you will need to VAT register there.
In most countries, the thresholds are not particularly high. The European tax authorities are on top of tracking down those online retailers they think are non-compliant. If and when they catch up with potential violators, they have the power to issue penalties for late or non-compliance.
Did You Know…
300 Pairs of these could march you over the threshold!
Just 150 sets of these could bring your business to halt!
Just 35 of these could see your business carrying a big fine!
Sold 70 of these and are not fully in the picture?
Also be aware, different VAT rules apply when you use fulfilment centres in other EU countries to stock and supply your goods to your customers in that region. The movement of the goods alone to the fulfilment centre, even without any sales, triggers an immediate VAT registration obligation.
At simplyVAT.com we provide the international VAT compliance services to keep online retailers on the right side of the VAT rules and regulations in the countries where you have customers.
We have produced a free guide ‘10 Pitfalls of International Trading‘ to help online retailers avoid the potential problems of trading internationally. It tackles a range of topics from cultural nuances to more in-depth information on VAT registration thresholds and accompanying VAT compliance issues. Please follow the link to our website and download your free copy today.
Don’t be put off trading internationally – The cost of compliance is far outweighed by the benefits. Make sure you do your due diligence and understand your obligations – increased profits are sure to follow.
For more information please feel free to contact us at [email protected] or call 0207 760 7667
2 Responses
My advice would be never to get involved with German VAT – god to they love their paperwork!!
The chances of getting caught are low bout the costs of compliance are high