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January 30, 2025

The Complete Guide to VAT Registration in the EU for Non-EU Businesses Maja Bernat Piletic | usagoldmines.com

🤔

Does your business operate outside the European Union and you’re aiming to sell in the European market?
 That’s a fantastic opportunity! However, before you proceed, there’s a critical step you need to understand: VAT registration in the EU (VAT, Value Added Tax).

This guide will clearly and simply explain everything you need to know, based on the real questions of our clients.

1. Do I Need to Register My Business for European VAT?

The first thing is to know if you are required to register. Here’s a summary:

✅

YES, you need to register if:

  • 📦 You store products in the EU: If your business, even if it’s not European, stores goods in any EU country, you need a VAT number in that country.
  • 💼 You sell remotely (B2C) and exceed €10,000 in annual sales: If your business sells products directly to end consumers in the EU and your total annual sales exceed €10,000, you need to register for VAT, either through direct registration in each country or through the One-Stop Shop (OSS) scheme.
  • 🚚 You dropship from outside the EU:
    • Orders over €150: You need to register for VAT in the destination country of the goods.
    • Orders under €150: You can use the IOSS (Import One-Stop Shop) scheme, but it’s not mandatory. If you don’t use IOSS, you need to register for VAT in each country where you sell.

❌

NO, you do NOT need to register if:

  • 💼 You only sell to other businesses (B2B): And your customer is registered with a valid VAT number in the EU.
  • 💰 Your B2C sales to the EU are less than €10,000 per year: And you do not store products in the EU.

2. How and Where Do I Register for VAT in the EU?

The registration process and location depend on where your business is established and how you make your sales:

🌐

Business NOT established in the EU:

  • Sales through marketplaces (Amazon, eBay, etc.):
    • If the marketplace acts as a “Deemed Supplier”, they usually take care of collecting and declaring VAT.
    • If you store products in the EU using a marketplace like Amazon FBA, you need to register for VAT in each country where your products are stored.
  • Direct sales to consumers (B2C) from outside the EU (value over €150):
    • You need to register for VAT in each country where you sell.
  • Direct sales to consumers (B2C) from outside the EU (value under €150):
    • You can use the IOSS scheme (Import One Stop Shop) to simplify the process, but Hellotax does not offer this service.
  • Direct sales to consumers (B2C) from within the EU:
    • You can register in one EU country and use the OSS scheme (One-Stop Shop) to declare VAT for all EU countries.

🏢

Business established in the EU:

  • If your business is established in an EU country, you must register in that country.
  • If you exceed €10,000 in B2C sales to other EU countries, you can use the OSS scheme to simplify VAT management.

3. What Do I Need to Register?

Requirements vary by country, but in general, you will need:

  • 📄 Certificate of incorporation of the company (issued within the last 6 months).
  • 📄 VAT certificate from your country (if applicable).
  • 📄 Proof of tax ID that the company is registered for year-end tax
  • 📄 Company Articles of Association.
  • 📄 Company bank statement.
  • 🆔 Identification of the directors (passport or ID card).
  • 📸 Selfie of the director with their passport or ID card (for identity verification).
  • 📝 Proof of business activity in the EU (sales invoices).
  • 🌐 Proof of online commercial activity (screenshots of your online store).
  • 📝 Power of attorney (if using a fiscal representative).

⚠

Attention!
 All documents must be translated into the official language of the country where you are registering. Some countries, such as Spain, require sworn and apostilled translations.

4. How Long Does the Registration Process Take?

The registration process usually takes between 8-12 weeks, but it can vary depending on the country.

5. Do I Need a Fiscal Representative?

❗

 Important: Some countries, such as France, Italy, Spain, and Poland, require non-EU companies to appoint a fiscal representative. This implies additional costs.

6. What if I Sell Through Amazon FBA?

📦

If you use Amazon FBA and store your products in their logistics centers, you need to register for VAT in each country where your products are stored.

7. What if I Sell From My Own Website?

  • 🛒 Shipments under €150: You can use the IOSS scheme (Import One-Stop Shop) to simplify the process, but Hellotax does not offer this service.
  • 🛒 Shipments over €150: You need to register for VAT in each country where you sell, unless you are using the OSS scheme.

8. How Can Hellotax Help Me?

At hellotax, we offer:

  • ✅ VAT Registration: We manage the entire registration process in the countries you need.
  • ✅ VAT Returns: We prepare and file your VAT returns monthly or quarterly.
  • ✅ OSS: We help you register and manage the OSS to simplify your B2C sales in the EU.
  • ✅ Intuitive Software: Access all your tax information in one place.
  • ✅ Personalized Advice: A VAT expert will guide you through the entire process.
  • ✅ Support in English, Spanish, German and other languages.
  • ✅ Translation of documents
  • ✅ Receiving, translating and sorting of all official correspondence

➡
Ready to Simplify Your VAT Management in the EU?

Contact us and we will advise you without obligation.

The post The Complete Guide to VAT Registration in the EU for Non-EU Businesses appeared first on hellotax Blog.

 

This articles is written by : Nermeen Nabil Khear Abdelmalak

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