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When should I register for VAT on sales on Amazon?
- Published: 17.03.2020
- Updated: 20.10.2022
- Read in: 3 min
When should I register for VAT in another country? Do I have to register for VAT abroad? I have exceeded my mail order limit and what now? Can I voluntarily register for VAT in another country?
When you sell your goods abroad, questions start to arise about where to pay VAT and when I need to register for VAT in another country.
To answer these questions you need to verify:
a) the value of sales of goods shipped to a given country
b) if there is a warehouse in the territory of that country where the goods are stored.
Limit of mail-order sales
Each country in the European Union has a distance selling threshold. The obligation to register for VAT arises when the value of sales (within the distance selling) on the territory of a given country exceeds the specified limit.
This limit results from the local regulations of a given country – data concerning the above limits are available on the website of the European Commission. After exceeding the limit, the obligation to register and settle VAT in a given country arises and to apply the tax rate appropriate for that country.
|Must read about new rules with VAT in European Union since the 1st of July 2021:|
Storage of goods in another country
The obligation to register for VAT in another EU country also arises when you move your own goods to a warehouse located in that country – e.g. Amazon warehouse in Germany. This is due to the obligation to settle shipments of goods between different EU countries in VAT returns.
At the same time, every sale from a warehouse located e.g. in Germany will, as a rule, be subject to taxation in Germany regardless of the value of the sale. The obligation to register as a VAT payer of the countries where you have warehouses arises even before you start sending your goods from them.