Doing E-commerce in Europe and being compliant with European VAT regulations is not as easy as it may seem. VAT regulations for E-commerce are easy to understand but are also very restrictive for companies.
How to be compliant with B2C VAT regulations?
VAT rules for E-commerce impose on companies carrying out B to C operations the obligation to register for VAT in the EU countries where goods are being shipped as soon as the volumes of sales exceed a certain sales threshold. This threshold varies from country to country.
Therefore if your company is doing E-commerce in Europe and selling to private consumers, we strongly recommend you keep track of your sales amounts in each EU country you are doing business in and compare these sales amounts to the local thresholds.
As long as these thresholds have not yet been exceeded, you must charge your clients the VAT of the country of departure, so where your warehouse is located. E-commerce operations are closely monitored both by the Tax Administrations of the countries of origin as well as destination. It is crucial that your company is fully compliant with VAT for E-commerce.
RMB provides full assistance with VAT for E-commerce and can be your unique contact in each of the 28 EU Member States + Switzerland and Norway. Our dedicated team will take care of your VAT registrations and VAT compliance. Let RMB take care of this mission for your company. It will save time and energy!
Is your company seeking clear and practical answers regarding VAT when doing E-commerce in Europe? As an independent company, RMB doesn’t just provide theoretical advice but guides businesses through all the steps of the VAT process. We ensure that companies clearly know what their VAT obligations are, how to issue their invoices, and what compulsory mentions need to be added to their documents.
RM Boulanger has assisted many companies in the B to C Industry. Our clients have remarked that they appreciate the flexibility of a fully independent company, who is able to offer a dedicated package of services and tailor-made processes. They have appointed RM Boulanger for its ability to register them for VAT in any EU Member State + Switzerland and Norway. Being independent from any big law or accounting firms enables RM Boulanger quickly respond to any specific queries you may have regarding VAT.
We can offer you advise for cross border VAT, fiscal representation, EU VAT registration, EORI number and VAT registration in France as well as all other EU Member States.
As explained above, you will have to register for VAT in the country of destination of your goods if your e-commerce operations exceed the thresholds listed hereafter in one calendar year. Meaning these e-commerce thresholds have to be analysed on a yearly basis.
This list is provided for your information only and will be regularly updated.
Registering for VAT when doing e-commerce in different EU countries is not easy to manage, as the documents and information requested by EU Member States may differ a lot. Some Tax Administrations even require apostilled documents that have been translated by a certified translator.
Once all the documents are provided, you may have to wait from a couple of days to a couple of months before you receive the official VAT registration approval. It is therefore important that you anticipate your VAT registrations so that you do not expose your company to a VAT reassessment in the country of destination of your goods.
Your sales invoices
Once your VAT registration numbers have been granted by the Local Tax Authorities, you will have to make sure that your e-commerce sales invoices are issued with the right local VAT rate and are compliant with the invoicing regulations in the countries of destination. Again, local regulations differ a lot as far as invoicing rules are concerned. Specific statements on invoices are indeed requested by some countries.