Dear Sellers, this website page is meant to provide you with some information to assist you in considering your obligations regarding registration for VAT and the related VAT rates that should be charged on the invoices sent to your customers.

Please note that the information listed below does not consist in tax advice and we kindly remind you that it is the responsibility of each seller to ensure its VAT-compliance in any EU country. We advise you to seek for professional or applicable tax authority advice should you have any doubt or question on your obligations.

If you sell goods or store inventory in any EU country (eg. ManoFulfilment/MF), it is likely that you have additional VAT registration, VAT accounting and VAT invoicing obligations in EU countries outside the country in which you have established your business.

Please find below some useful information about VAT across Europe, that we gathered from the relevant VAT authorities in each country.

How do I know if I need to register for VAT in the EU?

For EU-based companies, obligation to register for VAT depends on the following key criteria: 

the country of establishment of your business 

the country of storage of your inventory

and your business volume (thresholds vary from one country to another) – see dedicated section 

Non EU companies which do not store inventory in an EU country are not required to register for VAT in the EU. In that case, sales made to EU customers will be considered as import of goods in the hands of the customers who will be required to pay import VAT (and possibly import duties) to the customs authority where the goods are imported. 

 

However, non EU companies will be required to register for VAT if goods are stored in a EU country.

In which case is VAT registration required in France?

In which case is VAT registration required in the UK?

In which case is VAT registration required in Germany?

In which case is VAT registration required in Italy?

In which case is VAT registration required in Spain?

VAT registration in Spain is required if:

Your business is established in Spain and if you store goods in Spain and you sell them to consumers based in Spain.

 

Your business is established in a different EU Country and:

  • You store your goods in Spain
  • Or you sell to Spanish based consumers (non-business) and your sales business volume excluding VAT exceed the Spain distance selling VAT threshold of €35,000.

Your business is established outside of EU and you sell goods that you store in Spain to customers based in Spain.

Please note that if you sell goods that you store in Spain for delivery in other EU countries (i.e distance sales) and if you exceed the distance selling threshold in these other ship-to-EU countries you will be required to register for VAT in those countries also and charge VAT of the country of arrival.

What is the VAT registration process to register locally in Spain?

To register for VAT in Spain, submit an application form to Spanish tax authorities. 

(Further information can be found at the Spanish Tax Administration official web page).

At the end of the VAT registration process you will be provided with a local VAT number.

Once registered, do I have to declare VAT locally in Spain?

Once you are VAT registered in Spain and sell goods in Spain, Spanish VAT will have to be charged on the invoices sent to your customers. 

You will be required to submit a VAT return to the local tax office declaring the VAT charged and collected on your sales (standardly submitted on a monthly, quarterly or an annual basis)

 

VAT registration in Germany is required if:

Your business is established in Germany and:

    • You store goods in Germany that are sold to consumers based in Germany
    • And your sales business volume excluding VAT exceeds the German domestic VAT threshold of €17,500.

Your business is established in a different EU Country and:

    • You store your goods in Germany
    • Or you sell to German based consumers (non-business) and your sales business volume excluding VAT exceeds Germany distance selling VAT threshold of €100,000.

Your business is established outside of EU and you sell goods that you store in Germany to customers based in Germany.

Please note that if you sell goods that you store in Germany for delivery in other EU countries (i.e distance sales) and if you exceed the distance selling threshold in these other ship-to-EU countries you will be required to register for VAT in those countries also and charge VAT of the country of arrival.

What is the VAT registration process to register locally in Germany?

 

To register for VAT in Germany: submit an application form to the German tax authorities.

(Further information can be found at the BZSt, the German Federal Central Tax Office).

At the end of the VAT registration process you will be provided with a local VAT number.

Once registered, do I have to declare VAT in Germany?

Once you are VAT registered in Germany and sell goods in Germany, German VAT will have to be charged on the invoices sent to your customers. 

 

You will be required to submit a VAT return to the local tax office declaring the VAT charged and collected on your sales (standardly submitted on a monthly and, quarterly or an annual basis).

 

VAT registration in Italy is required if:

Your business is established in Italy and if you store goods in Italy that are sold to consumers based in Italy.

Your business is established in a different EU Country and:

    • You store your goods in Italy
    • Or you sell to Italian based consumers (non-business) and your sales business excluding VAT volumes exceeds Italy distance selling VAT threshold of €35,000.

Your business is established outside of EU and you sell goods that you store in Italy to customers based in Italy.

Please note that if you sell goods that you store in the Italy for delivery in other EU countries (i.e distance sales) and if you exceed the distance selling threshold in these other ship-to-EU countries you will be required to register for VAT in those countries also and charge VAT of the country of arrival.

What is the VAT registration process in Italy ?

 

To register for VAT in Italy, submit an application form to Italian tax authorities. 

(Further information can be found at the Italian Tax Administration official web page)

At the end of the VAT registration process you will be provided with a local VAT number.

Once registered, do I have to declare VAT locally in Italy?

Once you are VAT registered in Italy and sell goods in Italy, Italian VAT will have to be charged on the invoices sent to your customers. 

You will be required to submit a VAT return to the local tax office declaring the VAT charged and collected on your sales (standardly submitted on a monthly, quarterly or an annual basis)

 

VAT registration in France is required if:

Your business is established in France and:

    • You store goods in France that are sold to consumers based in France
    • And your sales business volume excluding VAT exceeds France domestic VAT threshold of €82,200.

Your business is established in a different EU Country and:

    • You store your goods in France
    • Or you sell to French based consumers (non-business) and your sales business volume excluding VAT exceeds the French distance selling VAT threshold of €35,000.

Your business is established outside of the EU and you sell goods that you store in France to customers based in France.

Please note that if you sell goods that you store in France for delivery in other EU countries (i.e distance sales) and if you exceed the distance selling threshold in these other ship-to-EU countries you will be required to register for VAT in those countries also and charge VAT of the country of arrival.

What is the VAT registration process to register locally in France?

 

To register for VAT in France, submit an application form to the to French tax authorities.

(Further information can be found at the French Tax Administration official web page)

At the end of the VAT registration process you will be provided with a local VAT number.

Once registered, do I have to declare VAT locally in France?

If you are VAT registered and sell goods in France, French VAT will have to be charged on the invoices sent to your customers.

You will be required to submit a VAT return to the local tax office declaring the VAT charged and collected on your sales (standardly submitted on a monthly basis).

VAT registration in the UK is required if:

Your business is established in the UK and:

    • You store goods in the UK that are sold to consumers based in the UK
    • And your sales business volume excluding VAT exceeds the UK domestic VAT threshold of £85,000.

Your business is established in a different EU Country and:

    • You store your goods in the UK
    • Or you sell to UK-based consumers (non-business) and your sales business volume excluding VAT exceeds the UK distance selling VAT threshold of £70,000.

Your business is established outside of EU and you sell goods that you store in the UK to customers based in the UK.

Please note that if you sell goods that you store in the UK for delivery in other EU countries (i.e distance sales) and if you exceed the distance selling threshold in these other ship-to-EU countries you will be required to register for VAT in those countries also and charge VAT of the country of arrival.

What is the VAT registration process to register locally in the UK?

To register for VAT in the UK, submit an application form to UK tax authorities. 

(Further information can be found at the HMRC, the UK tax authority website).

At the end of the VAT registration process you will be provided with a local VAT number.

Once registered, do I have to declare VAT locally in the UK?

Once you are VAT registered in the UK and sell goods in the UK, UK VAT will have to be charged on the invoices sent to your customers. 

 

You will be required to submit a VAT return to the local tax office (HMRC) declaring the VAT charged and collected on your sales (standardly submitted on a quarterly basis).

 

What if I sell to business customers established in another EU country? 

If your products are stored in an EU Country and if you sell these goods to business customers established in another ship-to-EU country (i.e intra-EU deliveries), VAT should not be applied on your sales invoices if the following conditions are met:

 

you obtain and show on your VAT sales invoice your customers’ EU VAT registration number in the country of arrival (including the 2-letter country prefix code),

the goods are sent to a destination in another EU country different from your storage country,

you obtain and keep valid commercial evidence that the goods have been removed from your storage country and shipped to another EU country.

 

The invoices sent to your B2B customers will have to make reference to the following mention: Exempt Intra-EU delivery – Article 138 Directive 2006/112

What if I’m not compliant with VAT registration requirements? 

 

 

If you fail to ensure your VAT registration requirements and VAT compliance within the EU, you might be facing the following consequences:

 

 

VAT you should have paid to the appropriate (EU) tax authorities will have to be paid with additional interest. This will be calculated starting from the date VAT should have originally been paid. 

 

 

 

 

 

Payment of a financial penalty is also likely depending on the amount of VAT due and the length of time you were non compliant.

 

 

 

 

 

In case ManoMano finds out that you failed to comply with your obligations to register for VAT, Manomano will take necessary actions (prior notice, business suspension, delisting from our platforms…) until you prove you are compliant.