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The comprehensive guide to VAT in Europe for ecommerce sellers

  • Ecommerce Strategies
  • Ecommerce Tools
  • Tax and compliance

What you will learn

  • Understand the fundamental difference between the European Union’s Value Added Tax (VAT), which is collected at each supply chain stage, and US sales tax.
  • Navigate the varying VAT rates across EU member states, including standard rates of at least 15% and specific reduced or zero rates.
  • Monitor specific annual revenue thresholds for distance selling to determine when you must register for a local VAT number in a buyer’s country.
  • Comply with mandatory European tax regulations seamlessly when importing goods or storing inventory in local warehouses through programs like Amazon FBA.
  • Simplify your B2C digital services tax compliance across all EU countries by utilizing the Mini-One-Stop-Shop (MOSS) quarterly reporting portal.

This article will give you some solid background about VAT in Europe. Read more about basic terms, VAT rates, VAT registration, exemptions and much more.

Ecommerce in Europe is expected to be worth 717 billion euros at the end of 2020 (12.7% increase compared to last year). Western Europe is still the most developed ecommerce market in Europe and has the highest share of online shoppers.

However, a big ecommerce sales growth can be observed in different parts of the continent.

Learn more about VAT in Europe to make your international expansion into Europe easier.