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Learn more
about distance
selling

 

In this day and age, one of the most promising ways of developing business is a foreign market expansion.


This can be achieved by expanding a scope of services through cross-border distance selling, currently being one of the most popular ways of selling goods – popular, yet subject to a number of tax regulations. It should not however deter anyone who is willing to take advantage of trading across Europe – ensuring a proper procedural compliance is sufficient to avoid criminal liability for breaching the law.


Sales threshold


Sellers who want to take advantage of intra-EU distance selling through e-commerce must be VAT payers. They declare to deliver goods within European Union to private persons or companies not registered for VAT. What is essential to be aware of is that the place of VAT settlement (your residence country or residence of counterparty) and the tax-allowance is determined i.a. by sales threshold, which is formed individually by all EU member countries.


Sales threshold across Europe are set as follows:

 
Austria
35.000 EUR
Belgium
35.000 EUR
Czech Republic
1.140.000 CZK
Denmark
280.000 DKK
Estonia
35.000 EUR
Finland
35.000 EUR
France
35.000 EUR
Spain
35.000 EUR
Netherlands
100.000 EUR
Ireland
35.000 EUR
Lithuania
35.000 EUR
Latvia
35.000 EUR
Germany
100.000 EUR
Norway
35.000 EUR
Portugal
35.000 EUR
Poland
160.000
Slovakia
35.000 EUR
Sweden
320.0000 SEK
Great Britain
70.000 GBP
Italy
35.000 EUR
Hungary
8800000 HUF
 

A company that exceeds sales threshold in the recipient country must apply for a VAT number in that country. Therefore the company is also lawfully obliged to meet all requirements of a VAT payer, such as filing VAT declarations.

Selling on Amazon


Sales threshold is not the only variable that needs to be taken into account. A sales model your company adopts might also impose a requirement of VAT registration.


A seller who is selling goods through Amazon - which proves to be a popular method among companies focused on cross-border selling - can opt for direct selling from a warehouse in Poland or for using FBA (Fulfillment by Amazon) service, which enables sending goods to one of Amazon warehouses abroad where they are further dispatched directly to the recipients.


Each of these operating methods is govern by different regulations regarding VAT settlement. For instance, you can place your inventory in Amazon warehouses in seven different countries across Europe, which then calls for registering for VAT in all of them.

 

Why us?


There is a variety of complex reporting obligations that have to be taken into consideration when you are preparing to sell abroad. Deadlines and filing periods for VAT return differ from country to country. Polish VAT regulations not necessarily translate into VAT regulations in other countries. Monitoring all of international sales in order to calculate whether or not you have exceeded the sales threshold in a given country requires additional time and means allotted to it.


When preparing for cross-country trade, it is a good idea to reach out to specialists with many years of experience on international market under their belt. Our team of experts ensures meeting all necessary formalities and compliance with international VAT requirements.


Our experts handle these types of complex issues every working day. We pride ourselves on having many satisfied customers we built a comprehensive, trustworthy partnership with.


Should you have any doubts whether your company could benefit from above mentioned solutions or not, please do not hesitate to reach out to one of our experts to schedule a free of charge and non-binding phone consultation.

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Do you sell your products online?


Are you planning a foreign market expansion of your business? Are you starting selling on Amazon or eBay? Did your company exceed sales thresholds in cross-border selling and you are obliged to register for VAT in the recipient countries?


Aleksandra Ogińska-Nowak
VAT Compliance Coordinator

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