VAT is a very complicated tax and if you are obligated to register for VAT in one or multiple countries, it can have a material impact on your business.
AT VATGlobal, we offer a dedicated account manager who will provide professional support and guidance along the way, but it is very important that you understand why you need to register for VAT and what it means for your online business.
If you sell to customers in foreign countries, it is very likely you need to register for VAT in that country. VAT registration is a very complicated process, requiring language skills, knowledge of local legislation and the application process.
Once you register for VAT in a foreign country, online sellers are required to file periodic VAT returns in the countries where they have VAT registrations.
There are several VAT compliance differences between selling your goods directly from your own website compared to using an online platform.
If you are based in the EU and sell your products directly to customers in other EU countries, or use fulfilment centres in other EU countries, you will probably face an obligation to charge and collect local VAT.
As part of the implementation of the Single Market in the EU, the Member States agreed to various simplifying measures. Most crucially, all duties and taxes on goods imported / exported between EU states were removed.
The USA does not have a Value Added Tax (“VAT”) regime. Although there is no concept of paying or charging VAT on your sales, there is a consumption tax known as Sales Tax that might be applicable to your sales.
If your customers request a refund and return their goods, this has a VAT impact for 2 reasons...
As a VAT technology company, we want to ensure that the VAT compliance process is as automated as possible.
The VAT landscape in Europe and across the world is very daunting. The legislation differs between countries (even within the EU) and so do the compliance requirements.