E-commerce sales have boomed recently, as we spent more of our time indoors and online. This year’s Black Friday sale is an opportunity for e-commerce sellers to capitalise on the increase in online sales. However, cross-border sales means cross-border VAT, which is complex at the best of times. Do you have an effective VAT strategy for the November sale season?
The VAT implications of selling online
We’ve previously considered the VAT implications of Black Friday e-commerce sales
However, a lot can change in a year. Especially when it comes to VAT. If you sell goods online to customers in Europe, there are a number of new regulations you need to consider. There are also effective new options for managing your VAT on e-commerce sales in Europe.
A simpler way to manage VAT on e-commerce
Previously, online sellers who supplied goods to customers in multiple EU countries had to pay close attention to the distance sales threshold in each market. Exceed the sales threshold in a given country, and you have to register locally for VAT.
The e-commerce One Stop Shop (OSS) simplifies the process. Online retailers that elect to use the OSS can manage their VAT obligations on sales throughout the EU with a single OSS VAT registration.
If you sell goods to customers in Europe and would like to take advantage of the OSS, get in touch with Vatglobal for a complete OSS solution for your business.
Drop shipping to EU customers
Just as the OSS simplifies VAT compliance for the sale of goods across the EU, the Import One Stop Shop (IOSS) simplifies drop shipping to EU customers.
If you import goods from outside of the EU and ship them directly to customers in EU Member States, the IOSS enables you to manage all your VAT obligations with a single electronic VAT return. Notably, the IOSS also simplifies the customs clearance process. That’s invaluable if you want to get your Black Friday goods to your customers on time.
Vatglobal offers a simple IOSS solution that overcomes the obstacles of dropshipping to the EU.
E-commerce VAT solutions for Black Friday and beyond
What’s the best Black Friday e-commerce VAT solution for your business? That depends on a number of factors, including your product lines, fulfillment processes and strategic objectives.
Vatglobal’s e-commerce VAT specialists will carefully assess your entire supply chain and tailor a VAT solution that ensures you are always 100% VAT compliant and helps you meet your strategic goals. Get in touch with Vatglobal for a technology-driven e-commerce VAT solution.