We love hearing about new businesses that are ready to grow into the European marketplace. Whether you are thinking about selling in a new EU territory or are already operational and looking to check your compliance in a particular country, a VAT consulting firm can make sure you are VAT registered and compliant.
If you are an international distance seller who is already selling — or plans to sell — in the UK, France, Italy, Spain, Germany, Poland or the Czech Republic, you’ll benefit from specialist international VAT support. Tax laws across the EU vary from country to country and they will affect your business and its bottom line. In this post, we outline just a few of the many ways a VAT consulting firm can help you break into the European marketplace effectively and without unwanted risks.
VAT registration must be done for each country
Unfortunately, you can’t use a single VAT number to cover every country in which you sell your products, as each country has its own rules and regulations. It’s important to ensure that your VAT registration is filed carefully and VAT administration and tax returns are maintained efficiently. Understanding the tax laws of each EU member state can be daunting and some require paperwork to be completed in that country’s language. Having a VAT consultancy firm on your side guarantees that no mistakes are made during the application process.
Amazon has a programme that allows your products to be stored and orders fulfilled in various European countries, depending on where you sell. Its Pan-European FBA allows you to sell products faster and cheaper in Europe but requires you to be VAT registered in each country you stock your products in and countries where you have breached the threshold. You’ll also need to make sure you calculate the correct amount of VAT to add onto your final selling price. Some companies might be discouraged from opting for Amazon’s FBA programme because of the complex process of registering for VAT, however, a professional tax consulting firm can complete all of your forms and returns on your behalf, giving you more time to invest in your business.
Some countries require the assistance of a fiscal representative
If you reside outside of the EU, many countries will require an international fiscal representative to register and file VAT returns on your behalf. The registration process can be complicated, and compliance requires considerable language skills and knowledge of taxation in various countries. Using a consulting firm guarantees your VAT registration is done correctly and as quickly as possible. This will get your products into more countries and, crucially, allow you to start selling.
Save time on monthly VAT tax returns
Our knowledge and experience ensure that your VAT returns are filed correctly and that VAT is paid on time. VAT returns are usually done on a monthly basis, though this may be quarterly in cases of low annual revenue. You’ll need to be diligent in keeping track of all sales in each country you sell to. VAT tax returns must be filed in a timely manner, to avoid penalties — if you have stock in five EU countries, you’ll have to register for VAT in each of those countries and file separate returns. ATG Tax Global can do all of the number crunching for you and make sure your returns are filed on time.
VAT compliance should be a top priority
It’s essential that your business is VAT compliant, as penalties can be hefty and your Amazon or Alibaba account could be suspended in the event of non-compliance.
You don’t have to figure out VAT registration and regulations on your own. Selling products in the EU can be challenging, but we make it easy. We specialise in helping Amazon and Alibaba e-sellers become VAT compliant all across the EU. Is it time for you to break into the European marketplace?
Request your free, 30-minute initial consultation, to find out more about our services and how we can help. Our expert tax consultants will discuss your requirements with you and advise on the best course of action to ensure your tax compliance abroad.