VAT is a type of tax levied on consumer expenses. VAT is levied on business transactions, imported goods, and goods transported between European countries.

Here are the VAT registration thresholds for remote sales and domestic sales of businesses established in the country.
VAT threshold
The starting point for remote sales
A nationally established business is the starting point in the country

To collect VAT, you must first register for VAT and obtain a VAT number (see section below on VAT registration requirements)
Once you have registered for VAT, you must comply with VAT regulations applicable to the country in which you are registering, but this usually means that you must charge VAT on the products you sell (if applicable) and show this VAT on your VAT invoice (please consult your tax advisor for specific advice on invoice requirements).
The amount of VAT paid to the local tax authority, that is, VAT levied on buyers, can be deducted from VAT on the purchases/costs of your business (consult your tax advisor to find out which costs are recoverable). For example, if you pay UK VAT on purchases, such as import VAT, you can use this VAT on your UK VAT return to deduct VAT from sales in the UK.
The amount of VAT payable to the tax authority is the net of your UK export tax less the amount of recoverable UK input tax.
Note that you should be aware of the VAT filing and invoicing requirements for each country where you are registered. Although these requirements are similar, there are significant differences: see the section on VAT invoices below.

According to European law, the minimum standard VAT rate is 15%, and the minimum tax reduction rate is 5%, but the actual tax rate will vary from European country to country and product type. Additionally, some European countries/regions have retained independent regulatory requirements in certain areas.
The most reliable source of information on current VAT rates for specified products within a specific European country is that country's VAT collection agency. You may need a tax advisor to help you determine the applicable VAT rate.

If you store, ship, or sell products in more than one country in Europe, you may need to register for VAT in more than one country. If this is the case, you'll need to file VAT returns in multiple countries/regions.
VAT registration requirements in multiple countries are complicated, and we recommend consulting a tax advisor, especially if you are storing products or selling remotely in multiple European countries (see section below).

In many European countries, customers expect a VAT invoice. VAT regulations in the country where you ship and the country where the buyer is located may require you to provide VAT invoices, and buyer expectations often exceed what is required by law. For example, in Germany and Italy, buyers generally expect an invoice from the seller for high-value products.

When you sell in Europe, you may be required to collect VAT. If so, you'll need to apply for a VAT registration number, file VAT, and pay the VAT you collected from the buyer to the tax authority.
In many European countries/regions, you can register the country/region you want to register online through the tax agency's website. Most websites provide VAT information in English. Usually, the website will provide an online registration form, or a PDF form that you can download, which you can fill out and mail back. If online registration is not available, you can find 5 places to register your VAT number. Once you have submitted your VAT ID, you may also receive a form sent to you by regular mail to sign and return.
A VAT claim may be subject to a range of related compliance requirements, including the need to file a declaration and issue a VAT invoice.

Distance selling is when you sell from one European country and physically ship your products to an individual (B2C) located in another European country. According to European VAT regulations in general, sales of such products are subject to the VAT rate of the shipping country. This is inconsistent with the basic concept of VAT, which is that the final VAT should be collected in the country where the consumer is located. VAT regulations for cross-border distance sales ensure that after B2C sales from one European country to another exceed a certain value, VAT is collected in the consumer's country.
This value, also known as the remote selling threshold, is set in euros for each European country/region. If your remote sales exceed the country/region threshold, you must register for VAT in that country and collect local VAT. Depending on distance selling regulations, you can choose to collect VAT in the receiving country from the beginning of your sales activity. For example: If you store your products in the UK and sell them to French B2C consumers, you'll need to consider France's remote selling threshold, regardless of whether your business address is outside of Europe. The difference in business address only affects the requirement to register VAT in the UK, that is, if you store your products in the UK, you must comply with VAT reporting requirements just like a business established in the UK.
To determine whether you should register for VAT by selling remotely, we recommend consulting a tax advisor.

Business addresses include:

We recommend consulting a tax advisor with UK VAT experience to find out if you have a business address in the UK or another European country.

In response to these frequently asked questions, we consider B2C consumers to be individuals who are unregistered or not required to register for VAT. This includes unregistered individuals, public institutions, charities, and businesses because their own transactions are below the VAT registration threshold or their activities are completely exempt from VAT (such as the Health Authority).

For these frequently asked questions, a business buyer is a legal or natural person who purchases goods and services based on their VAT business activities. VAT business activities include:

In response to these frequently asked questions, we think B2B buyers can provide you with their VAT registration number.

If you need to issue a UK VAT invoice, the invoice must legally include the most basic information. This information, as shown on the UK Revenue and Customs (HMRC) website, is as follows:

If you have registered for VAT and sell in the UK, you will need to charge your buyers UK VAT (see section below for VAT rates you may be required to collect). This is also known as your output tax.
If you sell to UK B2B buyers, you will need to issue VAT invoices (see section above for details on VAT invoices). If you sell to B2C consumers, you are not required to issue VAT invoices to suppliers within the UK, but it is common practice to provide invoices when requested. If selling remotely to UK B2C consumers (inventory from other European countries), a VAT invoice is usually required.
The VAT you collect on your sales is reported to HMRC in the form of a VAT return, which is generally submitted on a quarterly basis. The amount of VAT paid to HMRC is a VAT credit on your purchases/costs (that is, UK VAT charged to you, including import VAT). This is also known as your input tax. The amount of VAT paid to HMRC is the net of your output tax minus the amount of recoverable input tax.
This overview is very general, and we recommend that you consult your tax advisor for information on preparing and submitting VAT returns

If you sell remotely from inventory stored in the UK to B2C consumers in other European countries (for example, from the UK to another European country) and have not registered VAT in the receiving country, you are required to charge UK VAT. In such cases, you must collect and settle VAT in the same way as domestic sales (see section above). Note that you must always issue a UK VAT invoice for remote sales that are shipped from the UK and are subject to UK VAT.
However, if you exceed the remote selling threshold in another European country, you will need to register for VAT in that country. This means you should no longer be charged UK VAT on such sales to this country; instead, you should charge VAT in the country of receipt. For example, if you store your products in the UK and start selling them to French B2C consumers, you must charge UK VAT. Once you have determined that you will exceed the French remote sales threshold, you must submit a French VAT registration application to the French tax authority, and you will be required to collect French VAT on B2C sales to France (that is, issue a French VAT invoice and submit a French VAT return).
In remote selling, you also have the option to collect taxes on your sales in the receiving country/region (if the remote selling threshold is not exceeded). Once such an option is made, VAT will be charged in the destination country (not UK VAT) and will be subject to that country/region's invoicing requirements.
If your products were stored in the European country where the consumer is located prior to sale, this is not considered a remote sale. For example, if you sell products to French consumers, and you provide these consumers with products that have already been stored in France, you are selling within France, and your place of VAT registration should be considered to be in France.

If you sell to B2B buyers in other European countries, you don't need to charge VAT if you meet all the conditions. In the UK, the conditions, as shown on the HMRC website, are as follows:

Other conditions must also be met, such as other specific invoice requirements, so we recommend that you consult a tax advisor before selling to B2B buyers in other European countries
Additional supporting documentation is also required, such as the EC Sales List (a regular report to HMRC listing all European cross-border sales from the UK to VAT-registered buyers in other European countries).

Once you have registered for VAT, if you incur UK VAT in connection with your business, you can recover this VAT in the form of a VAT refund, that is, VAT on your purchases/costs can be deducted from VAT generated by your sales. The value-added tax on costs is called input tax. If you don't have a business address in the UK and don't need to register in the UK, you can recover input tax without going through the UK VAT refund process. If this applies to you, we recommend that you consult your tax advisor for more details on the fulfillment process.

If you sell in the UK, the applicable VAT rate varies depending on the type of product you sell. At present, the VAT rates applicable are either 20%, 5% or 0%. It's important to note that most products sold in the UK are subject to a 20% tax rate; if you're unsure which VAT rate applies to your products, please consult your tax advisor.

If you export goods to Europe for sale, you will generally be required to pay import VAT (and possibly import duties) to the importing country's tax authority. Note that if you store your products in a European country, you will need to register for VAT. There are various import VAT structures and payment methods; if you need more detailed advice, we recommend consulting a tax advisor with UK VAT experience.
Tip: If you sell in multiple Amazon European marketplaces, be aware that you may be required to pay VAT in different European countries, so you may need to apply for VAT numbers in different European countries. Please consult your tax advisor to help you understand your VAT obligations within Europe.

If you store products in the UK and sell and ship these products to UK buyers, you need to register for VAT in the UK immediately (from the moment the product enters the UK). Note that overseas (non-European) businesses may also need to appoint a UK tax representative. Similarly, if you store your products in any other European country, you will need to register for VAT in that country.

If you store products in the UK and sell and ship these products to UK customers, you need to register for VAT immediately. This is because the UK's domestic VAT registration threshold only applies to individuals with a business address in the UK. Note that overseas (non-European) businesses may also need to appoint a UK tax representative. Additionally, if you store products in the UK and sell and ship these products to individuals in other European countries (usually remote sales), you may also need to register for VAT in the European country where you received the goods. If you would like more information on VAT thresholds for remote sales in European countries/regions, please refer to FAQ 1.1.

If you import goods into the EU for resale, you usually need to pay import VAT (and possibly import duties) to the tax authority where the goods are imported. There are many ways to pay import VAT, and if you need more detailed advice, we recommend consulting a tax advisor with UK VAT experience.

When selling products from one European country to another, you need to be aware that different countries apply different tax rates. If you store your products in a European country, you will need to register for VAT (if any) in that country when your sales exceed the VAT registration threshold. Additionally, if you move your products from one European country to another, or use Amazon Logistics to move your products from one fulfillment center to another country where you will be storing your products, such transfers may also be considered a transaction subject to VAT. You must comply with all applicable VAT obligations, including VAT obligations where the Amazon Marketplace site is located, VAT obligations in the country to which you are delivering or shipping products, and VAT obligations in any other country (for example, the country of import if you are importing products from outside of Europe).
Tip: If you sell in multiple Amazon European marketplaces, be aware that you may be required to pay VAT in different European countries, so you may need to apply for VAT numbers in different European countries. Please consult your tax advisor to help you understand your VAT obligations within Europe.

If you store your products in the UK and only sell to UK customers, you need to register for VAT when your sales exceed the UK VAT registration threshold.
If you also sell and ship these products to consumers in other European countries (usually remote sales), you may also need to register for VAT in the European country where you received the goods. If you would like more information on VAT thresholds for remote sales in European countries/regions, please refer to FAQ 1.1.

If you store products in the UK and personally sell and ship these products to the UK, you will need to register for VAT in the UK when you exceed the UK remote selling threshold. Additionally, if you store your products in other European countries and ship your products to storage locations in the UK (whether by your own means or by Amazon), you may be required to register for VAT in the UK.

If you need to issue a German VAT invoice, the invoice must legally include the most basic information. It is as follows:

If you have registered for VAT and sell in Germany, you will need to charge German VAT from your buyers (see the section below for VAT rates you may be required to collect). This is also known as your output tax.
If you sell to German B2B buyers, you will need to issue VAT invoices (see section above for details on VAT invoices). If you sell to B2C consumers, you are not required to issue VAT invoices to suppliers within Germany, but it is common practice to provide invoices when requested. If selling remotely to German B2C consumers (inventory from other European countries), a VAT invoice is usually required.
The VAT you collect on your sales is reported to your local tax authority in the form of a VAT return, which is generally submitted on a quarterly basis. The amount of VAT paid to the local tax authority can be deducted from VAT on your purchases/costs (that is, German VAT charged to you, including import VAT). This is also known as your input tax. The amount of VAT paid to your local tax authority is the net of your output tax minus the amount of recoverable input tax.
This overview is very general, and we recommend consulting a tax advisor for information on preparing and submitting VAT returns.

If you sell remotely from inventory stored in Germany to B2C consumers in other European countries (for example, from Germany to another European country) and have not registered VAT in the receiving country, you are required to collect German VAT. In such cases, you must collect and settle VAT in the same way as sales in your home country (see section above). Note that you must always issue a compliant German VAT invoice for remote sales that are shipped from Germany and are subject to German VAT.
However, if you exceed the remote selling threshold in another European country, you will need to register for VAT in that country. This means you should no longer be charged German VAT on such sales to this country; instead, you should collect VAT in the country of receipt. For example, if you store products in Germany and start selling these products to French B2C consumers, you must collect German VAT. Once you have determined that you will exceed the French remote sales threshold, you must submit a French VAT registration application to the French tax authority, and you will be required to collect French VAT on B2C sales to France (that is, issue a French VAT invoice and submit a French VAT return).
In remote selling, you also have the option to collect taxes on your sales in the receiving country/region (if the remote selling threshold is not exceeded). Once such an option is made, VAT will be charged in the destination country (not German VAT) and will be subject to that country/region's invoicing requirements.
If your products were stored in the European country where the consumer is located prior to sale, this is not considered a remote sale. For example, if you sell products to French consumers, and you provide these consumers with products that have already been stored in France, you are selling within France, and your place of VAT registration should be considered to be in France.

If you sell to B2B buyers in other European countries, you don't need to charge VAT if you meet all the conditions. In Germany, the conditions are as shown on the local tax authority's website, as follows:

Other conditions must also be met, such as other specific invoice requirements, so we recommend that you consult a tax advisor before selling to B2B buyers in other European countries
Additional supporting documentation is also required, such as the EC Sales List (a regular report to the local tax authority listing all European cross-border sales from Germany to VAT-registered buyers in other European countries).

Once you have registered for VAT, if you incur German VAT associated with your business, you can recover this VAT in the form of a VAT refund, that is, VAT on your purchases/costs can be deducted from VAT generated by your sales. The value-added tax on costs is called input tax. If you don't have a business address in Germany and you don't need to register in Germany, you can recover input tax without going through the German VAT refund process. If this applies to you, we recommend that you consult your tax advisor for more details on the fulfillment process.

If you sell in Germany, the applicable VAT rate varies depending on the type of product you sell. Currently, the applicable VAT rate is 19%, 7%, or 0%. It's important to note that most products sold in Germany are subject to a 19% tax rate; if you're unsure which VAT rate applies to your products, please consult your tax advisor.

If you export goods to Europe for sale, you will generally be required to pay import VAT (and possibly import duties) to the importing country's tax authority. Note that if you store your products in a European country, you will need to register for VAT. There are various import VAT structures and payment methods; if you need more detailed advice, we recommend consulting a tax advisor with German VAT experience.
Tip: If you sell in multiple Amazon European marketplaces, be aware that you may be required to pay VAT in different European countries, so you may need to apply for VAT numbers in different European countries. Please consult your tax advisor to help you understand your VAT obligations within Europe.

If you store products in Germany and sell and ship these products to German buyers, you need to register VAT in Germany immediately (from the moment the product enters Germany). Note that overseas (non-European) businesses may also need to appoint a German tax representative. Similarly, if you store your products in any other European country, you will need to register for VAT in that country.

If you store products in Germany and sell and ship these products to German customers, you need to register for VAT immediately. This is because Germany's domestic VAT registration threshold only applies to individuals with a business address in Germany. Note that overseas (non-European) businesses may also need to appoint a German tax representative. Additionally, if you store products in Germany and sell and ship these products to individuals in other European countries (usually remote sales), you may also need to register for VAT in the European country of receipt. If you would like more information on VAT thresholds for remote sales in European countries/regions, please visit VAT FAQ 1.1.

If you export goods to Europe for sale, you will generally be required to pay import VAT (and possibly import duties) to the importing country's tax authority. There are various import VAT structures and payment methods; if you need more detailed advice, we recommend consulting a tax advisor with German VAT experience.

When selling products from one European country to another, you need to be aware that different countries apply different tax rates. If you store your products in a European country, you will need to register for VAT (if any) in that country when your sales exceed the VAT registration threshold. Additionally, if you move your products from one European country to another, or use Amazon Logistics to move your products from one fulfillment center to another country where you will be storing your products, such transfers may also be considered a transaction subject to VAT. You must comply with all applicable VAT obligations, including VAT obligations where the Amazon Marketplace site is located, VAT obligations in the country to which you are delivering or shipping products, and VAT obligations in any other country (for example, the country of import if you are importing products from outside of Europe).
Tip: If you sell in multiple Amazon European marketplaces, be aware that you may be required to pay VAT in different European countries, so you may need to apply for VAT numbers in different European countries. Please consult your tax advisor to help you understand your VAT obligations within Europe.

If you store your products in Germany and only sell to German customers, you need to register for VAT when your sales exceed the German VAT registration threshold.
If you also sell and ship these products to consumers in other European countries (usually remote sales), you may also need to register for VAT in the European country where you received the goods. If you would like more information on VAT thresholds for remote sales in European countries/regions, please visit VAT FAQ 1.1.

If you store your products in Germany and sell and ship them personally to Germany, you will need to register for VAT in Germany when you exceed the German remote sales threshold. Additionally, if you store your products in other European countries and ship your products to a storage location in Germany (whether by your own means or by Amazon), you may be required to register VAT in Germany.