How to handle VAT in Europe when running an independent website? How to pay VAT?

There are still many merchants doing independent cross-border e-commerce in Europe, but doing e-commerce in Europe needs to face the VAT tax problem, because this is a more troublesome thing. Merchants need to register a VAT tax number themselves to pay smoothly. So how to deal with this problem?

How to handle European VAT on an independent website ?

VAT is usually filled in the tax information. We just need to fill it in as required and add the VAT number!

How to pay VAT?

According to UK and EU laws, independent site sellers need to register for a VAT number and pay taxes if the following conditions are met.

1. Annual sales exceed the distance sales threshold of the UK or EU (after July 1, 2021, the distance sales threshold of the EU will be adjusted to the general threshold of 10,000 euros);

2. Using European local warehouses to store and sell goods in Europe;

3. The company is established in a European country.

The process of paying VAT:

1. Registration tax number

Sellers need to register the corresponding VAT number according to the company entity and the main sales country. For example, if you use one company to open an independent website and mainly sell to the UK and Germany, the seller needs to register UK VAT and German VAT. The registration information in European countries is slightly different, mainly requiring a business license, legal person ID card, store link, authorization letter (signed and stamped), corporate credit report, etc.

2. Declare and pay

Sellers need to declare the VAT for the previous month or quarter to the tax authorities according to the country's reporting cycle and pay the tax within the deadline.

If you run an independent website, you must pay VAT on time, otherwise it will affect the operation of the store. In addition, when applying for VAT for an independent website, you can provide a link to register a tax number for the independent website. You need to provide the store information of the independent website, as well as business plans, sales data and other information. This way, the application for a tax number will be faster.

To set up an independent website in Europe, you must first register for VAT, and then pay it according to relevant regulations. The current European regulations on VAT are that as long as the annual sales exceed 10,000 euros, you must register. In addition, if you use a local European warehouse or the company is located in Europe, you must pay VAT.

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