You want to sell bycicles to every consumer in the European Union. You start selling and you are happy that your product is realy hot. In each country you sell a lot of these devices and then you find out that you have to pay VAT in the countries you are selling. Hopefully you have enough margin, because you will receive penalties for not paying VAT. Each country has its treshold and you must be aware not exceed this. If you see for example in the second week of December that you reach the VAT amount of € 34500 it is probable cheeper not to sell in the month of December. Just tell customers that they will receive there product in the First week of January. When they agree you don’t have a problem. Otherwise you have to pay back the money the consumer spend because of the consumer protection laws on distance selling… Or are you willing to grow in the next year, then you should contact a fiscal representative. In Europe you can talk with RM Boulanger about your ‘fiscal Representation‘.
RMB or RM Boulanger is of the oldest companies in Europe giving VAT services. This is a special field of expertise. Most companies doing B2B business inside Europe don’t have to claim back VAT. But when your business is in the B2C, then it is different. In each country you have a so called ‘VAT treshold’ that means as long as you don’t exceed this number, that you can pay VAT in the country that you are registered. Most of the countries in Europe are lowering the treshold, because they loos money. But what do you have to do when you exceed the treshold? You have to go after registering in the specific country to get a VAT-number. So you have to spend a lot of time to do all paperwork in terms the appliance. And everytime you have send in documents, you have to be sure that it is all correct, so you don’t have to pay penalties or fines. To make it easier for yourself you just have to look for a fiscal represenative like RMB or RM Boulanger. This company has a network in all the 28 European Member states, Norway and Switzerland. Even when your business is expanding you just have to call your contactperson or send an email to put the registration in proces. So don’t make things complex for yourself and save a lot of time and money. And what to think of a EORI-number? This can also be arranged by RM Boulanger in the UK…