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.
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.