- VAT Registration Necessity: E-commerce sellers must register for VAT in specific scenarios, such as storing goods in another country, fulfilling orders from an EU warehouse, or exceeding distance selling thresholds when shipping across EU borders.
- Consequences of Non-Compliance: Failing to register for VAT can lead to legal issues, suspension from online marketplaces, and penalties from tax authorities, significantly impacting sales and business operations.
- Simplification Schemes and Compliance: The EU offers simplification schemes like the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) to facilitate VAT compliance for e-commerce businesses, particularly for cross-border transactions, while online marketplaces share certain VAT responsibilities.
Source VATit Compliance
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