As a Spanish autónomo or business, you may be required to register for VAT in other EU countries in several situations, particularly when dealing with the sale and distribution of physical goods. Although each EU country has specific rules, the following are common circumstances that generally trigger the need for VAT registration in another EU member state:
B2B Sales (Business to Business)
If you are selling goods to a legal entity (B2B) within another EU member state, and you store or distribute goods from a warehouse in that country, you must register for VAT there. This is because your sale is considered a domestic transaction in the country where the goods are stored, requiring local VAT compliance.
Goods Stored in Another EU Country (B2C Sales)
When your goods are stored in a warehouse located in another EU country and sold to end consumers (B2C) from that warehouse, you are required to register for VAT in that country. The VAT must be charged at the local rate, and you will need to submit VAT declarations to the tax authorities of the country where the warehouse is located.
Selling Goods via EU Amazon FBA (Fulfilled by Amazon)
If you use Amazon’s FBA service to store and distribute goods in different EU countries, you may need to register for VAT in each country where Amazon stores your goods. For example, participating in Amazon’s Pan-EU FBA program requires VAT registration in every EU country where Amazon holds your inventory. Alternatively, if you opt for Amazon’s Multi-Country Inventory (MCI) service, you only need to register for VAT in the countries where your goods are stored.
Use of the One-Stop Shop (OSS) Scheme
If your B2C sales from Spain to other EU countries exceed the EU-wide distance selling threshold of €10,000 per year, you are required to either register for VAT in each country where your customers are located or use the One-Stop Shop (OSS) Scheme. This scheme simplifies VAT reporting by allowing you to declare and pay VAT for all EU distance sales through a single VAT return filed in Spain, while applying the VAT rates of the respective EU countries.
Exporting Goods Outside the EU
While VAT registration in other EU countries is not needed for exports outside the EU, such transactions are zero-rated for VAT. However, customs declarations must still be submitted, and you must keep proper documentation, such as shipping invoices and customs export documents, as proof of export for VAT compliance purposes.
Please note that Xolo cannot submit VAT declarations to foreign tax authorities on your behalf. We recommend working with specialized service providers for VAT registration and compliance in other EU countries. Companies such as Global VAT Compliance, Avalara, TaxJar, and Hellotax are known for handling VAT reporting across multiple EU countries.
You need to register for VAT in other EU countries if you store or sell goods in those countries or if you exceed the EU-wide distance selling threshold for B2C transactions. When selling physical goods via platforms like Amazon FBA, VAT obligations may apply in multiple jurisdictions, and seeking assistance from a local tax expert is highly recommended.