E-commerce or distance selling? Don’t forget the VAT tresholds…

E-commerce or distance selling

Many distance selling or e-commerce companies in the EU member states or from abroud must be VAT Compliant in al the 28 EU Member States, Norway and Switzerland. This means also instrastat reporting. The term Intrastat means the you are selling cross border as a European based company. When the level of VAT exceeds the local treshold you have pay VAT local (this is in the country where you are selling). This is only in the B2C business (via E-commerce), because companies with a VAT-number can sell most of the time without charging VAT. To arrange all the paperwork for applying you also need a fiscal representative for your reporting. Each country has different forms and obligations. When a webshop exceed the VAT treshold you obligied to apply for a ‘local’ VAT number. For big organisation with many people working in the accounting department there are more abilities to organize it yourself. But SME’s only thing about selling instead of doing a lot administrational work. This is some kind of ‘blank spot’ but can very costly. The fines are extremly high so be prepared and look for a VAT representative like RMB that can provide you with all kinds of service in al the EU member states, Switzerland and Norway. The fact that you found this article means that you are aware of the fact that you need look for fiscal representation. You can ask RMB (short for RM Boulanger in the UK), because the have a network of experts throughout Europe with a VAT compliance hub in the heart of Europe. Companies selling via Amazon-like platforms (also Alibaba) are in state of panic, because they where mostly selling via the low Luxembourg VAT rate. In fact this was a big VAT leakage for the other EU members. So they solved the problem and closed this gap in the EU VAT law. In the law is arranged the treshold, how, where and how much VAT which says that you have to pay VAT in the country that you are selling in. Amazon or Alibaba are able to resolve this problem for you. You as a selling company are responsable to be VAT compliant. The maximum Alibaba or Amazon can do is to tell you where to get the service. Mostly they forget to mention one of the best companies in Europe to help and thats RM Boulanger (RMB). And what about an EORI-number? The registration is also a lot of paperwork like the VAT appliance. You can hire RM Boulanger to handle this for you.

It is not in the interest of Amazon and Alibaba to help you solving the problem. They online provide a sales platform, but it would be fair that advice you to talk with RM Boulanger. They have a Intrastat hub in the heart of Europe where al the experts are concentrated. That makes it is easy for you because you have a single point of contact for the whole EU. Beside that RMB provides a local Phone number in your country. So there is no treshold to contact this service oriented company. And of course even you are not selling via Amazon you can also contact RMB directly.

You can find more inforrmation on the RM Boulanger website in the UK: www.rmboulanger.uk