If you plan to sell physical goods through a Print on Demand (PoD) service provider, standard rules for selling physical goods apply. The key difference is that the PoD partner manages the shipping process on your behalf.
Here’s an example scenario when using a PoD provider’s assistance:
- You operate an online store selling custom mugs.
- A customer orders and pays to your company’s bank account (or via a payment gateway).
- Subsequently, you order the PoD provider to create and ship the customized mug directly to the customer.
- The PoD provider will then issue an invoice to you, covering the cost of the product, printing, shipping, and any associated fees.
With PoD, it’s crucial to identify the country from which the PoD partner is shipping the products to the end customer. To meet all legal and tax obligations, it's also essential to determine whether the end customer is a business (B2B) or consumer (B2C) and their location (within or outside the EU).
In Spain, the following regulations apply:
- VAT Registration: If your PoD partner is based in Spain, you will need to register for VAT and charge it on your sales. If they are located in another EU country, VAT may need to be accounted for based on the distance selling thresholds of that country.
- Packaging and EPR Compliance: As a seller of physical goods, you may also have responsibilities under the Extended Producer Responsibility (EPR) regulations, including registering for and reporting packaging materials.
To effectively evaluate your business activities and determine whether you need to register for VAT in other EU countries, please provide a comprehensive description of your planned operations. This will help us identify any external service provider assistance you may need or potential obligations in non-EU countries.
Please include the following details:
- The nature of the goods or services you plan to sell.
- Whether you will be selling to businesses (B2B), consumers (B2C), or both.
- The countries where your customers are located (in the EU, outside the EU, or both).
- The logistics of how you will fulfill orders (e.g., only PoD services, also through a warehouse, or direct shipping from suppliers).
- An estimation of your sales volumes and any expected cross-border transactions.
This information will help us determine if VAT registration is required and outline any additional compliance steps that may be necessary.