Web-shop Sales vs. Platform sales

There are several VAT compliance differences between selling your goods directly from your own website compared to using an online platform. Below are some of the important considerations:

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Web Sales

All sales are to private individuals (“B2C”) and therefore the registration obligations of B2C transactions apply

If you fulfil orders by directly exporting your goods to individual customers, you may avoid registration obligations

You can control the movement of inventory and import/export and thereby have a control over your VAT obligations

Platform Sales

If you sell your goods to the platform (who subsequently sells the goods B2C in their own name), then you may avoid registration obligations altogether

If you use the platform or third-party for fulfilment from EU distribution centres, you will need to register in all countries where goods are delivered from

Certain third party delivery options (Amazon FBA for example) force you to deliver goods from certain countries and move your stock between countries – exposing you to multiple registration obligations