VAT

VAT & Compliance

Value Added Tax. Charged on most goods sold in the EU. Standard rates in 2026: DE 19%, FR 20%, IT 22%, ES 21%, UK 20%. EU sellers must register for VAT in any country where they hold inventory or exceed distance-selling thresholds.

Value Added Tax (VAT) is a consumption tax levied on most goods and services sold within the EU, with standard rates set to be 19% in Germany (DE), 20% in France (FR), 22% in Italy (IT), 21% in Spain (ES), and 20% in the UK. EU sellers must register for VAT in any country where they hold inventory or exceed distance-selling thresholds, which vary by country; for instance, the threshold is €35,000 for sales to France and €100,000 for sales to Germany. Compliance involves submitting periodic VAT returns, typically quarterly or annually, detailing sales and VAT collected. The trade-off for sellers is that while VAT registration allows for reclaiming input VAT on business expenses, it also necessitates meticulous record-keeping and adherence to local regulations. Failure to comply can result in penalties, including fines or restrictions on selling in those markets. Amazon's Marketplace Tax Collection program automates VAT collection for sellers, but sellers remain responsible for ensuring their compliance with local VAT laws. Additionally, using tools like the VAT Calculation Service can help streamline VAT management across multiple EU marketplaces.

Powiązane: OSS, EORI Number, Pan-EU