Registering for VAT in the EU is one of the most important steps to empowering your global ambition. Unfortunately for ecommerce sellers, cross border sales have never been harder since Brexit and the outbreak of the pandemic. Fortunately for ecommerce sellers, we’re here to help. Regular readers of the blog will know that we have provided guides for registering in multiple countries, so this article is just going to serve as a centralized place for these guides. You will find them in their individual sections, as well as some advice regarding the OSS and IOSS.
Registering For VAT In Germany
Since Brexit, Germany certainly seems to be the most popular destination for UK sellers to register for VAT in Europe and it’s easy to see why. Germany currently has the second biggest ecommerce economy in Europe, estimated to be worth roughly €80 billion – a figure which is expected to rise to around €140 billion by 2024.
if you are a seller from the UK or anywhere else outside of the EU, you will have to register for German VAT if you want to make any sales to consumers located in Germany or if you want to hold stock in the country. For you Amazon sellers, please note this also includes holding stock in an FBA warehouse. It is vital to employ the help of experienced tax experts when applying for German VAT Registration, such as ourselves here at J&P, as the registration process is renowned for being scrupulous. Find more information in our how-to guide for registering for VAT in Germany.
Registering For VAT In France
With an ecommerce market worth over €150 billion and 70% of the population having access to the internet, France is definitely an enticing place for ecommerce sellers. The market is only getting more and lucrative, as evidenced by the fact that the average spending of online customers in France rose from €1500 in 2015 to €2600 in 2019.
The rules regarding when you have to register for VAT in France are very similar to the rules adopted by most of the European countries. If you are based outside of France, you will have to register for VAT if you hold stock in the country, provide services related to a property in France (accommodation, office space etc.), ship goods from France and, as of the 1st of July, if you are based outside of the EU and make any sales to French consumers.
You will be required to provide certain information typical of any tax registration, such as your full name and address, the address of your business and all your business’ relevant information. All applications and correspondence must be conducted in French. These applications must be submitted to the Service des Impôts des Entreprises. To find out more, read our how-to guide for VAT registration in France.
VAT Registration In Spain
Like the previous two EU countries, you need to register for VAT in Spain if you make any taxable sales or supply any services in the country. However, what is unusual about Spain is that you cannot register for VAT voluntarily. You have to already have made taxable sales of goods or services and then retrospectively pay VAT on those sales.
You must also register for VAT if you hold any stock in Spain. It’s also very important to note that you will need to appoint a fiscal representative in Spain. Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients. If you use J&P to facilitate your Spanish VAT registration we can act as your fiscal representative. Find out more in our guide relating to how to register for VAT in Spain.
How To Register For VAT In Italy
Italy has always presented a strange proposition for ecommerce sellers. On the one hand, it is no secret that the country lags behind some of the bigger ecommerce markets in Europe such as the UK and France. However, it is one of the fastest growing ecommerce markets in the world, with an average growth of 10-20% year-on-year for the last 5 years. With ecommerce in Italy now comfortably worth more than €30 billion, it might be time for you to expand your business to the southern European country.
There is no Italian VAT registration threshold for non-resident traders. So If you wish to sell in Italy you will have to register for VAT. Just as with Spain, you will be required to have a fiscal representative in order to register for VAT in Italy if you are a resident of a non-EU state. This is recommended in Italy anyway, as returns can sometime be complicated if not submitted in Italy. If you require this service, please be aware that we at J&P can act as a fiscal representative in Italy and we are very experienced in dealing with the Italian tax authorities. For more information, check out our guide on registering for VAT in Italy.
The OSS & IOSS
From the 1st July 2021, rather than registering for VAT in every individual EU country in which you make sales, you will be able to register for the OSS which will allow you to submit a single VAT return quarterly, listing all pan-EU sales.
To use the OSS though you will need to be VAT registered in at least one EU state. You will also have to remain registered in every EU state in which you store goods. Thus, it makes sense for you to store goods in the same country in which you have registered for VAT. Of course, if you are an EU seller this will likely be your country of residence.
The IOSS works similarly, but for import VAT and for sales up to €150. The IOSS also requires monthly returns, and you may need an EU-based intermediary depending on which country you register with. These are both complication systems, so please read our guide on the OSS and IOSS.
Conclusion – We Are Experts In EU VAT Registration
Evidently, VAT registration is an unavoidable step when it comes to expanding your business. This is especially true with the introduction of the OSS and IOSS service. Whilst it can be a stressful process, we are here to complete the process for you.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today. In addition, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
