Small business VAT registration

Sophie is a seller established in Belgium. She is VAT registered in Belgium.

She sells online fashion that she designs and manufactures in her attic. In order to supply faster, she ships her products to a fulfilment centre in Germany and France. When customers in the EU order products online, the products will be shipped from the fulfilment centre nearest to the customer.

VAT impact

Sophie should be VAT registered also in Germany and France. She has to submit VAT returns in Belgium, Germany and France. The transfer of products to the fulfilment centres needs to be reported in the Belgian VAT return and European Sales listing as an Intracommunity supply and in the German and French VAT returns as an Intracommunity acquisition. As long as Sophie does not exceed the distance selling thresholds in other EU countries, sales to EU customers, depending on the location where the goods are sent from, need to be sold with German or French VAT.  This VAT is reported in the respective VAT returns and should be paid to the German or French tax authorities.