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Old 08-11-2017, 08:59 AM
Vikram Hans's Avatar
Vikram Hans Vikram Hans is offline
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Join Date: Aug 2017
Posts: 2
Default VAT - Selling into the EU?

Hello Ecwid community, have recently partnered with Ecwid, providing VAT support and advice to you guys, the community.

As you are all probably aware, VAT is a highly complex issue here in the EU. All 28 European Countries have VAT at differing rates. VAT has different names in different countries e.g. In France it is TVA, Spain – IVA, Germany – Mwst etc. Each country also applies its own VAT rate. VAT is a key source of revenue for any government.

So why does this affect you? If you sell goods from any country into the EU, you are subject to VAT.

VAT is a tax that is applied to goods and services at the point of consumption – the final consumer. You then must consider allowances for the provision of VAT whenever you export goods or services into the EU. Please note that although guidelines for VAT policy are set by the EU, each member state enforces the rules. Each member state also sets their own VAT rates which range from 17-27%. In the USA companies are used to quoting prices without Sales Tax. In the EU, all goods should always show a price including VAT. This means you will need to consider your pricing – will you have to change prices depending on which country you’re customers are buying from? Please be aware that how you price goods in different EU member states could affect your margins.

VAT is applied at the place of supply of the goods – the location where you sell to the end-user. However, the “place of supply” principle doesn’t always determine whether it’s you or the customer who is liable for VAT. Your VAT registration and collection responsibilities depend on lots of factors. Here are some of the most important:

• Where you are based (as the supplier)
• Where your customers are based
• Whether your customer is a private consumer or a business
• Whether you’re providing goods or service
• Physical goods or digital goods

A blog will be going up on Ecwid in the near future which will go into more depth on VAT in the EU. It will cover all aspects of VAT including:

• Distance Selling Thresholds
• Importer of record
• Holding Stock
• Fiscal Representation

If I could pose a few questions to help start you guys thinking about your VAT obligations:

1) Where do you sell to?
2) Are you using 3rd party logistics?
3) Do you sell cross borders?
4) Are you close to any distance selling thresholds?

In the meantime should you require any information or would like some advice then please do not hesitate to contact me here or directly at