Problems with VAT registration in the EU? Crossborderit helps you!
December 16, 2022
Are you in the process of expanding to the EU, but have VAT complications? This is the main reason why online retailers lose interest in the European market.
However, understanding how VAT works in the EU can help you reach new markets. Not only are there now tools and platforms to support international sales, but consumers are more willing and able to shop across borders.
Limiting sales to domestic markets can be a distinct disadvantage, even for small retailers.
How does VAT work in the EU?
From the first of July last year the new e-VAT rules came into force. This affected the following businesses:
Sell or supply goods to customers in the EU who are not registered for VAT.
Make landed supplies of goods from the EU to customers who are not registered for VAT.
Sellers in the rest of the world must charge VAT on all goods they sell to EU customers. VAT rates vary by EU member state. Therefore, you must determine the VAT rates of the product for all EU countries to which you ship.
In addition, you must customs declare all goods entering the EU regardless of their value. Consequently, when you sell to customers in any of the 27 EU member states, you must file a customs declaration.
Automate VAT compliance in the EU with the help of Crossborderit
Crossborderit's enhanced VAT compliance solutions provide global businesses with features that help navigate new laws for deemed suppliers OSS, IOSS and marketplace across the EU, as well as optimize overall VAT compliance through automation. Crossborderit helps businesses of all sizes become tax compliant.
Crossborderit easily integrates with Shopify and WooCommerce (soon Magento) based stores, allowing retailers to calculate taxes at checkout, report shipments using their IOSS CBIT number, and enter EU countries under the new "Import One Stop Shop" rules.
For more information, please visit the following link