Whether you are a small independent retailer selling to a niche market, for example in Denmark, or have a big international online presence like ASOS, you need to be aware that you have VAT obligations when selling online abroad.
There are rules and regulations which cannot be ignored – worst case scenario – your goods can be seized by customs, you won’t get paid by your disgruntled customers AND you may well have to pay a penalty to the tax authority!
SIMPLYVAT.com outlines what you need to know..
1. Know How Much You Are Selling & To Where…
Every country applies set thresholds. If your sales exceed those thresholds in any country, you will have to VAT register there. You may have to register in more than one country.
2. VAT Registration Process
Registering for VAT is a legal process which will require you to provide official documents. We help you compile the documents you need to present in each country where you need to register.
Once your VAT registration is approved you will get issued with a VAT number.
3. Do Your Invoices Contain The Correct Information?
Each country has different criteria for what information should be presented on an invoice – are you applying the right VAT rate and is the correct information on the invoice? We will give you the right country information to ensure your invoices are compliant.
4. VAT Returns
Once registered, you will have to submit periodic VAT returns to the tax authority.
Intrastat declarations are a way for European governments to collect statistical information about the movement of goods between the EU countries. Failure to provide the information once you are liable ie. when intrastat thresholds are reached is a criminal offence and can lead to fines.
We will help you compile the right information you need to present for the VAT returns, and when necessary, the intrastat declarations and make sure you don’t miss a deadline.
6. Selling Through Marketplaces?
You may think you are exempt from VAT regulations if you are selling through the marketplaces such as Amazon or eBay – you are not! If your sales exceed the VAT registration thresholds in the country or countries you are trading, you have the same obligations as any registered business selling to consumers. The tax authorities are known to trawl through such marketplaces looking for potential violators.
How We Can Help You
If you think you may need to register, don’t hesitate to contact us. We will take away the fear of the unknown.
It’s simple at SIMPLYVAT.com . . .