Challenge accepted: Distance seller and VAT registration in EU

But what to do when your business grows so much that clients from outside your country border are interested in the goods you provide?

Establishing international presence

If you can sell online, why limit yourself to the country of your residency? Most of you, business owners, will dismiss this idea because of the international tax legislation, that can be a hassle, right? Not anymore! Most of business owners have at least one consultant, or consultancy firm for helping with domestic legislation. The online expansion of your business, from a tax perspective can very well be handled by a consultancy firm. So just let them know you want to establish international presence as an online seller (distance seller).

Requirements for registration and compliance

The first thing to understand is that each country that you sell in has different approaches when it comes to registration and compliance. The registration is required only for VAT purposes, and only after exceeding a certain ceiling for your sales. Even though the numbers may differ, the general rule is the same: You sell below a certain amount (EUR 35000 in Romania, for example), you are not obliged to report and pay the VAT related to that sales in the country of dispatch, nor apply the local tax provisions on these sales.

Ongoing assistance

No matter how prepared you are or how much experience you have in local tax, if you have never faced the practice experience of a country’s tax administration, the process of registration and ongoing compliance may be a hassle. However, there are many consultancy firms all over the world that can provide all the needed support. All you have to do is to provide some documentation and wait for your VAT ID. In what concerns the recurrent VAT compliance, your international advisor can take care of the VAT computation and reporting obligations, if you provide the needed data for the respective reporting period.

Need help? We can provide it!  

No matter you are a Romanian company looking for international expansion or a foreign seller reaching to the Romanian customers, you will certainly need help in establishing your international presence and comply with the tax requirements of each country you are looking into expanding your business. Bring added value to your business plans with the help of your local tax adviser. Even if not specialized in international compliance, the local adviser will always find ways to assist you and prepare you for a challenge that could change the way you are doing business. Do you feel ready for this challenge? We do feel ready to help.

Contact an Advisor

If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or:

Raluca Tutu

  • Tax
  • Bucharest
  • +40 (31) 228 2075