When should I register for VAT on sales on Amazon?

Kamil Kempisty
Updated: 24 March 2021

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.

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. If you do not know whether you are obliged to register for VAT in the UK, Germany, or another EU country, please contact us for assistance >>

0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

See also

22 January 2021

What VAT applies in Spain?

IVA, short for “Impuesto sobre el Valor Añadido,” is the equivalent of VAT in Poland. VAT has been in force in Spain since 1986, when Spain joined the European Union. The basic VAT rate in Spain is 21% and covers all products and services that are not covered by the reduced rates of 10% and 4% and the zero rate.
Podstawowa stawka VAT w Hiszpanii wynosi 21% i obejmuje wszystkie produkty i usługi, których nie obejmuje stawki zmniejszone równe 10% i 4% oraz stawka zerowa.

11 December 2020

VAT after Brexit

From January 1st, 2021 Great Britain will no longer be part of the European Union VAT regime. As a consequence, the rules of taxation and documentation of deliveries of goods transported from the territory of the European Union will change. The United Kingdom will also introduce new rules for VAT settlements of sales through marketplaces […]

12 November 2020

VAT in Poland

The Value Added Tax was introduced in Poland in 1993 but since then regulations were amended many times. Currently, VAT in Poland is a part of the European common system of Value Added Tax. The standard VAT rate in Poland is 23% since 2011. There are reduced rates of 8% and 5% on certain food, books, newspapers and some other services.

23 October 2020

Distance selling thresholds in EU

In recent years, e-commerce sales have been growing very dynamically, which can be seen on the example of the Amazon platform. If selling online, there are also tax issues related to VAT reporting in different countries.

20 March 2020

Brexit and Amazon – What does the British exit from the European Union mean for retailers?

On Friday January 31, 2020 at 11:00 p.m. British time (i.e. at midnight in Poland), after 47 years, the United Kingdom ceased to be a member of the European Union. From the very beginning Brexit in the British Isles was associated with a single word – “chaos.” Sellers of their goods on Amazon should know the possible consequences of the British exit from the European Union.

2 March 2020

Amazon.pl? Amazon in Poland in 2020

Amazon will launch its service in Poland by the end of 2020, according to “Gazeta Wyborcza.” Amazon.pl can change a lot on the Polish e-commerce market. It is said that the Polish Post Office has undergone qualitative tests and it is this institution that will deal with the delivery of Amazon products

facebook-icon twitter-icon linkedin-icon comments-icon facebook