VAT Compliance
services for e-commerce
across the EU

An online seller is obligated to register for VAT in a European country other than the one where their company is based when meeting one of the following conditions:

• Exceeding a limit, that is, if the online seller makes sales above a certain sales limit and is not registered for the VAT-OSS procedure, they must register for VAT in the countries where to which distance sales occurred after exceeding the said limit. Effective as of July 2021, the limit for mail order sales to individuals is €10,000 per year.
• Warehousing goods in a country outside the company's country of residence: When a seller begins storing their goods abroad, they should already have an active VAT number in the country where they use the warehouse. This applies even if it is a rented warehouse or a warehouse provided by a platform such as Amazon under the FBA Amazon model.

It is worth noting that VAT regulations in Europe may vary from country to country, both within and outside the European Union. Therefore, it is always advisable to consult with a tax advisor or tax authority in the respective country to get accurate information and understand all tax obligations.

The VAT OSS or "One Stop Shop" procedure is a voluntary VAT settlement in distance sales for EU businesses selling to B2C customers. It came into effect on July 1, 2021.

The main principle of this system is that declarations and the corresponding tax are submitted to the tax office in one EU country, and that tax office is responsible for transferring the amount to local tax offices in other EU countries. Settlement for transactions is possible in a single quarterly declaration in EUR.

Registration is not mandatory. Entrepreneurs have the option, but are not obligated, to register for VAT-OSS immediately after commencing online sales in EU countries or after exceeding the 10,000 EUR (net) threshold. Importantly, the limit is calculated cumulatively for all EU countries and on an annual basis.

For additional information, please visit: https://amavat.eu/information-about-one-stop-shop-oss/

Of course. Registration for the VAT-OSS procedure does not preclude you from having an active local VAT number in European countries and vice versa.

An e-commerce company based in Poland may find itself in a situation where it ships goods from both its domestic warehouse and Germany. The scale of cross-border sales is significant, and it anticipates that it will quickly exceed the 10,000 EUR net limit or does not want to risk exceeding it without an active VAT-OSS registration. In such a situation, the company is obliged to register for VAT locally in Germany and at the same time, due to cross-border distance sales to individuals, it can register for the VAT-OSS procedure.

No. At amavat^®, we have a transparent pricing system that does not depend on the number of online sellers' sales transactions.

While we encourage each of our clients to see their sales grow and businesses thrive, the scale of these sales does not affect the subscription fee.

It stands for the European VAT number, which is required for every commercial transaction within the European Union. To obtain it, one must register as a VAT payer with the tax authorities office. In Poland, a document called VAT-R must be completed for this purpose.

Once the VEU VAT number is obtained, it allows to verify if a particular foreign company is an active taxpayer.

This number also helps to avoid taxation of a transaction according to the tariff from the counterparty's country.

It should also be remembered that companies that were exempt from VAT are obliged to update the previously mentioned VAT-R form.

If you want to check whether a counterparty is an EU VAT payer, you can use the European Commission's search engine in the form of the VIES online tool.

Intrastat is essentially a list of all intra-community transactions involving the exchange of goods between a company and other businesses. Entrepreneurs are obligated to provide information on the imports and exports of goods to European Union countries. It can be said that this is the main purpose for which Intrastat was created.

If your company operates in the European Union markets, one of your obligations is to submit the Intrastat declaration, but only if the value of goods turnover with EU countries exceeds specific thresholds established in individual states during the calendar year (reporting year) or, importantly, in the year preceding the reporting year.

If you need support in this area, we will be happy to help. Feel free to contact us.

EORI (Economic Operator’s Registration and Identification) is the Community System for Registration and Identification of economic entities. This number must be possessed by all EU-registered entities sending goods to third countries, as well as entities registered outside the Union planning to import goods into the EU. All entities registered in the EU sending goods to third countries, and entities registered outside the EU planning to import goods into the EU, must have this number.

It is crucial to apply for an EORI number before you start exporting sales or importing goods between the European Union and non-Union countries. Why? Because the EORI number will be required at the very first customs operation.

The EORI number is unique, assigned only once, and valid throughout the EU. All assigned EORI numbers can be verified on the website https://ec.europa.eu/taxation_customs/dds2/eos/eori_validation.jsp?Lang=en.

It is worth noting that due to Brexit, trading between the European Union and the UK also requires businesses to have an EORI number. In fact, two EORI numbers are needed:

• European – for goods to leave the EU
• British - for goods to enter the UK.

For more information on this matter, feel free to reach out to one of our experts during a non-binding consultation.

The VAT registration process in European countries can vary from a few weeks to several months, depending on the country of registration and the timing of the process.

In Poland, the VAT registration process is relatively efficient. However, in other European countries, one should expect at least a few weeks of waiting for the VAT number after submitting the registration application. In countries such as Spain and Italy, to you should expect up to several months of waiting.

It is essential to note that during holiday seasons, this process is often slowed down due to vacation periods in government offices. It may be similar in the fourth quarter of the year, when e-commerce experiences its highest turnovers and there is an increased interest in international expansion, the demand for foreign VAT registration is higher.

The VAT-OSS registration process takes a few business days from the time the application is submitted.

Unlike domestic VAT, VAT-OSS does not involve the issuance of an additional identification number. The taxpayer receives a confirmation of registration for the VAT-OSS procedure.

Amazon FBA (Fulfillment by Amazon) is a service offered by Amazon to its sellers, allowing them to sell products worldwide with from Amazon’s logistics support.

In the FBA model, Amazon takes care of both packaging and shipping, as well as the subsequent handling of shipments. The advantage of this solution is access to the world's largest markets, thereby resulting in increased sales. Sellers do not need to worry about organizing their warehouse space or the timeliness of delivering goods.

However, the most significant advantage of Amazon FBA seems to be the transfer of responsibility for shipping and product preparation from the seller to Amazon. This not only changes the way online stores operate but also impacts financial aspects. It is important to consider that the nature of accounting practices may also undergo changes.

On the other hand, Amazon FBM, or Fulfillment by Merchants, is a collaboration model offered by Amazon for sellers who prefer to ship goods from their own warehouses. In essence, by choosing Amazon FBM, the seller is responsible for storing, packaging, shipping, and delivering products to customers.

This is the so-called "reverse charge mechanism". It may take place at the time of sale.

Reverse charge on purchase:
If a Polish business receives an invoice marked as "reverse charge," it is obliged to pay and settle the VAT. Therefore, this obligation rests with the purchaser of the service or goods. on the basis of the so-called "self-calculation".

Reverse charge on sales:
It is important to note that the reverse charge mechanism applies only to sales made to companies registered as active VAT taxpayers. In Poland, the obligation for "reverse charge" is referred to in Article 106e, paragraph 1, point 18 of the VAT Act. This occurs when a company invoices the supply of goods or the provision of services, for which the purchaser of the goods or services is obliged to settle VAT.

To apply the reverse charge mechanism, the following conditions must be met:

• A. The supply of goods or provision of services is subject to VAT taxation in a country other than Poland.
• B. The regulations of that latter country state that the obligation to settle VAT for the supply of goods or services documented with a given invoice should be imposed on the purchaser of the goods or services.

It is also crucial to remember that if a Polish business provides services to a taxpayer subject to VAT from another EU country or engages in intra-Community acquisitions of goods, it is obliged to submit a monthly summary VAT-UE information to the tax office where the tax obligation arises.