Selling via E-commerce is the dream of many people. So they build a little webshop and after a few years they got customers al over Europe. People start to make money. The problem with many cross border selling webshops is that they forget to aks for a local VAT-number. And that is where the problem appears. Ofcours you are allowed to sell in other countries, but every country has its VAT treshold. So this is pretty tricky, because in Germany for example you are allowed to sell for € 100.000, but in Belgium it is less then € 40.000,-. And you are only interested in selling, not into a lot administrative work. So you have to look in Google for ‘Fiscal Representation’. You need in every country where you want to sell in Europe a Fiscal Representative. This person or organisation can handle all the paperwork for you to get a local VAT-number. On a regular base you have to report how much you earned and pay you duties to the local administration.
Is this expensive? The penalty you will get by not paying VAT will be much higher then the yearly charge. The charge is not so much that you can’t afford it. If you can’t afford, the you better choose another kind of business. But you reached the treshold it might be clear that means that you have a certain turnover. Befor you enter a new market be aware that you are well informed.
Where to search for a fiscal representative? There are several organisations that can handel this for you, but in the UK you can work the best with RM Boulanger. This organisation handles more then 30 years al kind of TAX and VAT issues. Because of the experience you avoid extra work, because the know exactly what you need in each country. In the heart of Europe RM Boulanger has a VAT Compliance hub on the Belgian and French border. Here are al the specialists concentrated. In every European country RM Boulanger has a local number so you can dial on the local charges. The 1th of January is a remarkable date that many webshops will feel in their pockets. The treshold espessialy in France is seriously decreased. So be aware to contact RM Boulanger (RMB) in time to avoid serious trouble. Call the local number and you can speak with a specialist. You can concentrate on your business and RMB does al the work.
More information: www.rmboulanger.co.uk (**)