American businesses that sell online to customers in Europe may be subject to VAT.
Value Added Tax (VAT) is usually necessary for a business that stores or sells goods in the European Union as well as other European countries like the UK.
American-based businesses that sell online through eBay and Amazon in Europe are required to be VAT registered in order to sell on those platforms. Businesses that sell through their own website using Shopify, WooCommerce or a proprietary store must be VAT registered if they exceed the relevant sales threshold in each country. Click here to learn about individual VAT thresholds for European countries.
Once a business is legally required to be registered for VAT, that business must meet compliance requirements, filings, reporting and where necessary have fiscal representation.
VAT compliance is an ongoing obligation and errors or missing filings can result in fines or penalties from the relevant tax authority.
If you still aren’t sure if your US-based business should be VAT registered, or if you need VAT services, contact our VAT specialists on +44 (0) 208-004-1160 in the UK, ++1 (714) 782-7000 in the USA or simply email us at query@MyVATdirect.com.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.