EU VAT Registrations For Ecommerce Sellers

November 15, 2017 in Amazon, Ecommerce, European VAT, Fulfilment By Amazon, International VAT, VAT, VAT and Fulfilment

Selling Goods Online Internationally?

Want to know if you should be VAT registered in an EU country?

At – We Stop You Drowning Under Your VAT Compliance Obligations


  1. The EU VAT Distance Selling Rules


Did you know any sales you make online to local and other EU private consumers are governed by what’s known as the EU VAT distance selling rules.  The term ‘distance selling’ in the VAT world don’t relate to any sales going cross-border, they are actually a set of EU VAT rules that affect anyone selling goods online throughout the European Union.

The rules state that you charge local VAT until you exceed set thresholds.   Once a distance selling threshold is exceeded in any one calendar year, you will need a VAT registration in that EU country.  The current set thresholds are:

  • Euros 35,000 (or local currency equivalent) in every EU country, except:
  • Euros 100,000 (or equivalent) in Germany, Netherlands and Luxembourg;
  • GBP 70,000 in the UK.


  1. The Distance Selling Thresholds and Using Fulfilment Centres in the EU


If you put your stock in a warehouse or fulfilment centre e.g. Amazon Fulfilment, in another EU country, this triggers an immediate need to VAT register – there are no thresholds to exceed.

Once you are selling from a fulfilment centre to private customers in other EU countries, you must monitor your distance sales from each location where your stock is stored.

This can happen to you!

To put this into perspective, an online seller named Tom came to us in June of this year. He had been holding his stock within the UK and selling to customers in Germany and France through online marketplaces. Tom didn’t know about the rules surrounding distance selling and was approached by the French tax authorities. Once he came to us, we uncovered that he had exceeded the €35,000 threshold in France over two years ago! Tom had to back date his registration in France, pay €25,000 worth of VAT to the French Tax Authorities, and pay a further 10% penalty of the VAT owed.

Unfortunately, ignorance was no defence. It is important to understand all of your obligations when selling internationally to ensure you provide longevity and sustainability for your business.

SimplyVAT’com’s Market-Leading Software to Help You Avoid Tax Authority Penalties and Interest Charges

Our new market-leading software can collate and monitor all your sales data from multiple sales channels you may be selling on such as Amazon, eBay and Shopify.

  • We can work out where and when you will need to VAT register in an EU country.
  • Our customer-focused, friendly and efficient service means we can fast-track your VAT registrations to ensure you continue to trade compliantly and sustainably.
  • We give you a dedicated client manager so you know someone is always there to answer your queries

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We are here to help you concentrate on your international expansion plans!

Any questions – Don’t hesitate to ask at 

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