HelloTax

Our software takes your departure country (country goods or services are sold from) as a default taxation place. But once your sales in a destination country reach a certain amount per year you need to pay VAT in the destination country. In order to pay VAT in the destination country, you need to register a VAT number there. You need to always keep an open eye on your distance sale thresholds in order to know when it's the right time to register a VAT number in the destination country.  Luckily our software monitors your sales thresholds automatically once you synchronized your Amazon Seller Account with it. Read more on how to set up your VATjar account.

NOTE: aside from sales thresholds in a destination country, the other criteria for registering a VAT number in a country is if you store goods there.  Read more about storing goods in a country here.

Distance selling affects only EU member countries and only B2C transactions and is calculated based on the net amounts. A distance sale occurs once goods are dispatched or transported from one EU member country to another. 

In the following table you can see the distance sales limits in all the countries in the EU:

NOTE: once you reached the limit in a specific country you are bound to register a VAT number there, and must therefore from that point on, use that country's specific VAT rate and pay VAT in that country.