VAT Compliance for Beauty and Cosmetic Brands

We handle VAT registrations and returns so you can sell in new countries without the hassle

Selling beauty, skincare or cosmetic products internationally can create VAT obligations in the UK, EU and other markets. If you sell through your own website, marketplaces or fulfilment partners, you may need to check VAT registration, IOSS, OSS, VAT rates, customs requirements and local VAT return rules.

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More than ever, consumers are looking to buy beauty and cosmetics products from international brands. There are lots of opportunities to expand your business, but doing so comes with tax obligations.

SimplyVAT specialises in cross-border VAT. Our experts make compliance simple, so you can focus on growing your brand.

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When Do Beauty Brands Need VAT Registration?

Beauty brands may need VAT registration when they sell cosmetics, skincare or beauty products into another country, store stock overseas, use fulfilment centres, or sell through marketplaces. If you are expanding into the UK, EU or Canada, your VAT obligations can depend on where your customers are based, where your products are shipped from, and how your sales are made.

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VAT Rules For Cosmetics Sold Online

Cosmetics sold online are usually treated as taxable goods, but VAT rates and reporting rules can vary by country. Beauty and skincare brands should check the correct VAT rate for each product, especially when selling bundles, samples, dermatological products or items with different ingredients and uses.

Want to Sell to Europe?

The UK and the EU have slightly different rules around the sale of cosmetics and beauty products, so we’ve covered both. Whether you’re a skincare startup or an established cosmetics brand, you know where to start.

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How to Sell Cosmetics in the EU

You don't need a licence to sell cosmetics to the EU but your products will need to meet regulatory requirements.

Find Out More

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How to Sell Cosmetics to the UK

This guide covers the basics of everything you need to do to start selling your products in the UK.

Read the Guide

IOSS And OSS For Beauty And Skincare Brands

IOSS can help beauty brands sell low-value goods to EU customers by collecting VAT at checkout for eligible imported orders. OSS can help brands report VAT on cross-border EU sales through one return, instead of managing separate VAT returns in every EU country. Choosing the right scheme can make EU VAT compliance simpler and improve the customer delivery experience.

VAT Risks For Cosmetic Brands Expanding Internationally

Cosmetic brands can run into VAT issues when they sell into new countries without checking registration rules, use fulfilment centres overseas, apply the wrong VAT rate, or miss local VAT return deadlines. These mistakes can lead to delayed shipments, unexpected VAT bills, penalties, or reduced profit margins.

How SimplyVAT Helps Beauty Brands Stay Compliant

SimplyVAT helps beauty and cosmetic brands manage international VAT compliance with expert support for VAT registration, VAT returns, IOSS, OSS, VAT rate reviews and cross-border selling. Whether you sell through Shopify, WooCommerce, Amazon, Zalando or your own website, we help you understand your obligations and stay focused on growing your brand.

Why So Many Beauty Brands Choose SimplyVAT

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Get registered for IOSS (Import One Stop Shop) in as little as 3 working days. You could start the process on Monday and be shipping your products on Thursday.

For 11 years, we’ve been helping ecommerce businesses with cross-border VAT. We’ve supported our clients through Brexit, ViDA and a sea of small regulatory changes.

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Our team is known for being responsive and reliable. We’ve been shortlisted for service awards, and we’re rated 4.7/5 on Trustpilot and 4.4/5 on Google.

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We can help you maximise your margins and get the edge in a competitive industry by reclaiming VAT that you’d paid on things like product testing, marketing and importing.

Get Started Today

How to Grow Your Beauty and Fashion Brand through IOSS

IOSS makes getting your products in the hands of EU consumers simple. Check out our webinar to learn:

Why IOSS is so impactful for beauty brands
How IOSS works and what you need to do to take advantage of it
How businesses are already using it to access the EU

How We Can Help

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Getting Started

We’re here to help you get started selling to Europe and Canada. We can help you with registrations and returns in 16 countries; from single country registrations to the One Stop Shop Schemes. Get expert advice at every step, no matter if you’re B2C, B2B, or where in the world you’re based.

Ongoing Compliance

Once you’re registered for VAT you have to file periodic returns. Don’t worry though, we’ll handle it for you. Just send us your sales data and we’ll prepare your return. All you have to do is approve them before we send them to the Tax Authorities. Tribexa, our compliance platform, makes it easy to connect with us – whether that’s sending us data or getting in touch with an expert.

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Industry Expertise

We’ve worked with beauty and cosmetics brands of all sizes. Whether you’re selling on Amazon or Zalando, Shopify or WooCommerce, we’ve seen it all. We can help you reclaim VAT you’ve spent in the EU getting your products ready for market.

Cosmetic Brands VAT FAQs

Can I reclaim VAT incurred on packaging or ingredients for beauty products if I’m registered for VAT in the EU?

If your purchase was made in the same country that you’re registered in, you should be able to reclaim the VAT on your VAT return. Make sure you’re keeping all your invoices in order if you want to do this!

My brand is using a third-party fulfilment service in several EU countries. How do I handle the VAT for that?

You have to be registered for VAT in every country where your goods are stored. You’ll also need to register for One Stop Shop (OSS) if you’re fulfilling from one EU country to another where you don’t have a VAT registration.

Are cosmetics and skincare products treated differently for VAT than other ecommerce goods?

Generally speaking, no. However, different product categories are rated differently by individual countries. Most cosmetics are standard-rated, but dermatological or medical-use items might be reduced.

If I sell a kit or bundle to the EU, which item’s VAT rate do I use?

The general EU VAT rules give us two ways to calculate the VAT on bundles. If there’s one main item in the kit, the whole bundle uses that’s products VAT rate. For example, your bundle is a serum, an applicator and a carrying case. The main product is the serum, so the whole kit uses the serum’s VAT rate. When there’s no clear main product in the bundle, you divide the price by its components and apply their individual rates to their individual values.

The Most Trusted VAT Support for Beauty Brands

ELElena

“SimpleVAT.eu’s user-friendly system simplified my Bulgarian store’s VAT.”

I recently started working with SimpleVAT.eu, and they helped me set up an online store for my Bulgarian company. I must say, they did an amazing job!

I recently started working with SimpleVAT.eu, and they helped me set up an online store for my Bulgarian company. I must say, they did an amazing job! The team was extremely attentive to detail and made additional customizations to meet the specific needs of my store. Their system is incredibly user-friendly, generating all the necessary reports seamlessly. You can issue invoices and receipts automatically or manually, and it’s compatible with various platforms. What I appreciate the most is that their solution allows my online store to function in Bulgaria without the need for a physical cash register, which was my primary goal. Additionally, my company plans to sell products in other EU countries, and SimpleVAT.eu guided me through the procedures and requirements, making the process much easier to understand. I highly recommend SimpleVAT.eu to anyone looking for a reliable and efficient solution for their e-commerce business in Bulgaria or the EU.

Mattia

“The onboarding process was smooth and clearly explained.”

I've just started my collaboration with SimplyVAT, and I must say the onboarding process has been excellent. Every step was smooth and clearly explained

I've just started my collaboration with SimplyVAT, and I must say the onboarding process has been excellent. Every step was smooth and clearly explained, making it easy to get everything set up. The customer team has been incredibly supportive, always available to answer my questions, and they are very attentive to detail. So far, it's been a great experience, and I feel confident moving forward with their support!

Wes

“SimplyVAT’s professional team made VAT compliance effortless.”

SimpyVat has been a crucial partner for our international business needs. Polite, punctual and professional, you really can't ask for more.

SimpyVat has been a crucial partner for our international business needs. Polite, punctual and professional, you really can't ask for more.

SimplyVAT customer

“SimplyVAT simplified VAT registrations in two EU countries.”

Great team at SimpleVAT who have helped us get sales tax registrations in two EU countries, and our EORI number application. A very tricky process,

Great team at SimpleVAT who have helped us get sales tax registrations in two EU countries, and our EORI number application. A very tricky process, but SimplyVAT have held our hands to make it as smooth as possible.

SimplyVAT customer

“SimplyVAT guided us seamlessly through German VAT registrations.”

Simply VAT have been great! They helped us obtain our German local and OSS VAT registrations and were incredibly helpful in guiding us through the entire process.

Simply VAT have been great! They helped us obtain our German local and OSS VAT registrations and were incredibly helpful in guiding us through the entire process. They are always efficient with our VAT Returns and very responsive to any questions we have. Thank you!

ELElena

“SimplyVAT.eu’s user-friendly system simplified my Bulgarian store’s VAT.”

I recently started working with SimpleVAT.eu, and they helped me set up an online store for my Bulgarian company. I must say, they did an amazing job!

I recently started working with SimpleVAT.eu, and they helped me set up an online store for my Bulgarian company. I must say, they did an amazing job! The team was extremely attentive to detail and made additional customizations to meet the specific needs of my store. Their system is incredibly user-friendly, generating all the necessary reports seamlessly. You can issue invoices and receipts automatically or manually, and it’s compatible with various platforms. What I appreciate the most is that their solution allows my online store to function in Bulgaria without the need for a physical cash register, which was my primary goal. Additionally, my company plans to sell products in other EU countries, and SimpleVAT.eu guided me through the procedures and requirements, making the process much easier to understand. I highly recommend SimpleVAT.eu to anyone looking for a reliable and efficient solution for their e-commerce business in Bulgaria or the EU.