VAT Recommendations for EU Sellers
This article tries to help you understand Value Added Tax in Europe and is not legally binding. It is understood that we are not tax professionals nor your counsel. If you are subject to VAT, you should seek professional help.
Most (if not all) European countries have a business status for sole proprietors, according to which they are not subject to VAT up to a specific billing amount per year.
Our advice is to research the name of this status in your country and register your business using it. You should hire an accountant who will help you every month (accountants for such business status usually offer a relatively cheap monthly fee).
Under this status, you will not be subject to VAT, meaning that :
You will not have to collect VAT on your sales with us
You will not be able to get back the VAT we charge you on our fees
Because, comparatively, you charge your customers a lot, and we charge you very little, this setup will be much more profitable for you than being liable for VAT.
When you reach a certain revenue threshold, your accountant will inform you of the next steps.
Most (if not all) European countries have a business status for sole proprietors, according to which they are not subject to VAT up to a specific billing amount per year.
Our advice is to research the name of this status in your country and register your business using it. You should hire an accountant who will help you every month (accountants for such business status usually offer a relatively cheap monthly fee).
Under this status, you will not be subject to VAT, meaning that :
You will not have to collect VAT on your sales with us
You will not be able to get back the VAT we charge you on our fees
Because, comparatively, you charge your customers a lot, and we charge you very little, this setup will be much more profitable for you than being liable for VAT.
When you reach a certain revenue threshold, your accountant will inform you of the next steps.
Updated on: 02/02/2023
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