The European Union is one of the largest and most profitable markets in the world, offering massive opportunities for startups. However, if you plan to sell products or digital services in Europe, one of the most important legal steps you must take is to register for VAT (Value Added Tax).
The European Union is one of the largest and most profitable markets in the world, offering massive opportunities for startups. However, if you plan to sell products or digital services in Europe, one of the most important legal steps you must take is to register for VAT (Value Added Tax).
Whether you are selling physical goods through Amazon or offering digital subscriptions from a SaaS platform, understanding and registering for VAT is essential for legal compliance and professional business operations.
In this guide, we’ll explain what VAT is, when you must register, and how startups can complete the process efficiently.
VAT (Value Added Tax) is a consumption tax applied to goods and services sold within Europe. It is collected at each stage of the supply chain and is ultimately paid by the end consumer.
If you're a startup selling to customers in the EU, you may be legally required to register for VAT, charge VAT on your invoices, and file tax reports to the relevant European tax authorities.
Legal compliance: Exceeding specific thresholds in sales requires VAT registration in certain EU countries.
Customer trust: A VAT number is a sign of legitimacy, especially for B2B transactions.
Marketplace requirements: Platforms like Amazon, eBay, or Etsy may require VAT registration.
Avoid penalties: Selling without registering for VAT can lead to significant fines and legal consequences.
If you use a fulfillment center in Europe (e.g., Amazon FBA in Germany), you must register for VAT in the country where your inventory is stored.
If your annual total sales to multiple EU countries exceed €10,000, you are required to register and collect VAT based on the buyer’s country.
If you offer digital products or services such as software, apps, e-books, or online courses to individuals in the EU, you must collect and report VAT based on the customer’s location, even if your company is based outside the EU.
Ask yourself:
Where is your inventory stored (if applicable)?
Which countries are your customers from?
Where are your biggest sales volumes?
The answers will help identify the countries where VAT registration is required.
Each EU country has different tax rules, forms, and reporting procedures. Startups often partner with specialized VAT service providers to streamline the process.
Recommended platforms:
SimplyVAT
hellotax
Avalara
Taxually
These services offer:
Country-specific registration
Tax return filing
Representation services
Automation and compliance tools
Although requirements vary by country, most tax authorities will ask for:
Business registration documents
Proof of company address
Director’s ID and contact details
Estimated sales and business activity description
Fulfillment or warehouse address (if applicable)
Once your registration is complete, you’ll be issued a VAT ID number. You must:
Include it on your invoices
Report VAT collected in tax returns
Submit periodic filings (monthly or quarterly) depending on the country
If you sell to multiple EU countries, you can simplify VAT compliance using the OSS (One-Stop Shop) system.
Benefits of OSS:
Register for VAT in just one EU country
File a single tax return for all cross-border B2C sales within the EU
Avoid multiple VAT registrations in every destination country
Submit quarterly filings instead of multiple local reports
Example: If you register in Estonia through OSS, you can report all sales to Germany, France, Italy, etc., in one quarterly VAT return.
Let’s say:
You have a startup based in Turkey
You sell physical products on Amazon
Your inventory is stored in Germany (FBA warehouse)
You sell to customers across the EU
Here’s what you must do:
Register for VAT in Germany (where inventory is stored)
Use OSS to report sales to other EU countries
Submit VAT returns quarterly or monthly
Add your VAT number to your Amazon Seller Central account
Each country has different VAT thresholds and processing times
Filing deadlines must not be missed
VAT registration should be completed before making EU sales
Some countries offer VAT refunds under certain conditions
VAT service providers charge a fee, but simplify the process significantly
in MarcaBien?
Free lawyer check within 24 hours
Registration, litigation support and trademark monitoring
Simple online and online 3-step process
Global branding services and support
Registration, litigation support and trademark monitoring
Your brand is safe with us with 95% success rate
Process Work
In order for a trademark to be registered, it must meet the distinctiveness criterion. Results and advice within 24 hours.
After completing the order, we will draft an application. Once approved, we will file it on your behalf, providing legal representation.
The application is evaluated by the relevant Intellectual Property Office (IPO), published and approved for possible objections.
After a successful registration, your trademark is valid from the date of application and retains the right of priority throughout the process.
Contact Us
Secure and register your brand!
