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Case

Your company based in Italy sells goods (clothes) via online shop platform (e-shop) and manages the shipment of the goods (via an express delivery company) to private individuals located in Belgium.

VAT registration is required and VAT must be paid immediately …

Your company should normally charge Italian VAT on your sales unless the turnover relative to Belgian customers exceeds the threshold of € 35,000. In that case, your company must be VAT registered in Belgium and charge Belgian VAT.

Voluntary VAT registration in Belgium can be also envisaged by your company even if the threshold is not exceeded. This option is interesting in order to apply the Belgium VAT rate (21%) lower than the Italian VAT rate (22%) on your sales.

Pay attention To

Companies selling goods across Europe via online shop platform (e-commerce) to individuals need to deal with VAT.

Managing VAT obligations correctly can help your company to optimize its revenues (VAT shouldn’t be a loss for your organization). By contrary, non-compliant organizations face risks involving payment of VAT (from 17 to 27%), possible double taxation [in your country and in the country of your clients], penalties and late payment interests.

Companies selling goods via internet to private individuals (B2C) must pay attention to the following issues:

  • Monitoring their sales and verify when the threshold is exceeded in one country ;

 

  • In case the threshold is exceeded, proceed to the local VAT registration and charge local VAT.

 

  • Check whether the local VAT is lower than the VAT rate applicable in their country and if affirmative, proceed to a voluntary local VAT registration.