VAT Compliance Service for Online Sellers (Amazon, Ebay, AliExpress)
Online retailing is growing rapidly around the world. Companies of all sizes are benefiting from the potential of the internet to enter new markets and expand their sales territory beyond the country in which they are established.
This is good news for businesses; but it is extremely important to make sure that VAT obligations, which are met as part of the sales process, are done properly, where managing VAT correctly is essential for international trade.
Currently, online businesses selling to consumers in other EU member states only needed to charge the VAT rate of the destination country if sales in that country exceeded a certain threshold, set by each national authority.
The new reform, which is estimated to come into force on July 1, 2021, represses the thresholds and each company bills more than 10. 000 for such sales, they must enter the value added rate of the State where the consumer is located.
This means that many of these online businesses will need to be aware of the different VAT rates that apply to their products in the other states.
Platforms such as Amazon, or Ebay will be forced to increase their VAT liabilities if the business owners, who sell their products, are outside the Union.
In the case of selling to other countries of the European Union you must register in the register of intra-community operators where you can find yourself in different situations:
- The seller and the recipient are in Spain, where VAT at 21% must be charged.
- The seller is in Spain and the recipient is in a member state of the European Union, other than Spain, where VAT is not charged.
- The seller is in Spain and the recipient is outside the European Union.
- The seller is in Spain and the recipient is established in the Canary Islands, Ceuta or Melilla.
- The seller is in Spain and the recipient is a private individual established in Spain or in any state of the European Union.
- The seller is in Spain and the recipient is a private individual outside an EU member state.
By using platform sales or directly you can create a VAT registration obligation – we are able to assist you in this process.
VAT registration /
Lowering of VAT
VAT filing and compliance
Presentation and compliance of Intrastat
Threshold monitoring
Full range of VAT / Tax consultancy
Support and
IT services
Are you an online retailer in Spain and looking for European VAT compliance support?