Non-EU company selling via a marketplace from EU to EU
Based on the nature of the transactions, the responsibilities are the following
The seller based outside the EU is selling goods through the marketplace. The goods are shipped from one EU country to another EU country.For VAT purposes the marketplace qualifies as a “deemed supplier” for this transaction, regarded as if he is purchasing the goods from the seller and then selling them to consumers. The marketplace should register for VAT in the country of customer and charge local VAT at the checkout.If the goods are sold to multiple EU countries, he has to register in each country or can use One Stop Shop (OSS) scheme. Under the OSS he registers only in the EU country where he is established (if the marketplace is based in the EU) and reports and pays VAT via its OSS return covering all EU countries. The OSS returns can be used only for sales of goods from one EU country to another, local sales facilitated by the marketplace and B2C services, any other transactions should be included in standard VAT returns. Also, the marketplace still needs a standard VAT registration in the country of establishment.
* While our tutorial brings clarity to complex rules, it is not tax advice. There are many exceptions to these rules and the legislation is constantly changing therefore always speak with your trusted tax expert. If you need practical assistance with your VAT obligations we will be happy to help you.
