On-line selling

We are receiving a large number of calls on our helpline from businesses and their advisors who sell products on on-line platforms. If a business sells goods to private individuals in other EU countries and exceed the distance selling threshold of that country, the business is required to register for VAT in that country and charge VAT at the appropriate local rate. Also, if an on-line platform sells the businesses goods from a warehouse located in another EU country, the sale is regarded as being made from where the goods are held and therefore the business will be required to register for VAT in that EU country and account for VAT at the appropriate rate.  This is likely to be the case no matter how small the value of the goods held in stock as most EU countries have a ‘nil’ VAT registration threshold!


Therefore, on-line sellers must monitor their sales to private individuals to other EU countries and also be aware of where their stock is held. Please feel free to contact our helpline to discuss the VAT obligations for businesses that sell online.


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