As the e-commerce industry continues to evolve, new opportunities for optimizing various aspects of business emerge. One such opportunity is the e-commerce fulfillment method, which involves outsourcing some or all logistics processes to an external entity. Opting for e-commerce fulfillment not only allows businesses to operate in e-commerce without the need for their own warehouse, thereby shortening delivery times, but also relieves entrepreneurs of responsibilities related to returns, shipments, and storage.
However, when a company decides to use e-commerce fulfillment, they gambling data philippine often choose to store their goods abroad. In such cases, the company must adhere to certain VAT-related conditions to comply with EU laws.
Our long-time partners at Taxology helped us create a definitive guide of VAT-related problems and solutions. They are a consulting company specializing in VAT compliance and taxation across UE and UK. We help e-commerce companies make settlements for cross-border sales efficiently and by applicable regulations. We advise on any doubts and solve tax problems. With Taxology the company gets full VAT support, expertise and tools to develop e-commerce abroad.
We have also held a webinar that you can watch at the end of the article to gain even more in-depth knowledge!
VAT-related conditions when storing goods abroad
The first step: Local VAT registration
The first step is to obtain the status of a domestic VAT taxpayer. To do this, one must register for VAT in their country of residence. It's crucial to note that while VAT matters are harmonized at the EU level, national authorities still have room to enact their own laws and procedures regarding aspects such as VAT rates, VAT return deadlines, or VAT registration processes, as long as they comply with the EU guidelines.