Getting VAT right is very important and essential for increasing your sales. Amazon sellers which are operating within the European Union might have to apply for a VAT number (EU-companies) or a tax number (non-EU-companies) for their business in other European countries. A VAT number is a consumption tax which applies to goods and services that are bought and sold in the EU. The requirements for the application are based on the VAT directives of the European Union but may vary from country to country.
But who actually needs a VAT number?
- Foreign companies which are buying and selling goods in other countries
- Companies which are holding goods in Amazon warehouses in other countries
- Companies which are importing goods into EU countries. This can also include companies which are moving goods across national EU boarders.
And how do I apply for a VAT number?
In most countries companies can apply online for a VAT number on the countries tax authority’s website. To apply for a VAT or tax number the companies have to complete a VAT registration form either online or a PDF document in the country where they would like to operate. They also have to submit some important documents, such as:
- Proof of VAT or tax registration of their home country
- Article if Association of the company
- Original copy of the Certificate of incorporation
- Statement for the national company registrar to proof the existence of the company
- Proof of the planned trade
Besides these documents some countries will require a few additional documents that should be supplied. After the application process it will take approximately 2 – 8 weeks to receive a VAT or tax number. Some countries might have translated tax registration forms, other countries won’t have translated documents so it could be helpful to organize a translator to avoid misunderstandings and to safe some time.