Managing VAT and Tax

Designed to help you manage your VAT and Tax responsibilities wherever you sell.

Don't let VAT reporting get in the way of selling more

  • Monitor your EU VAT position
  • Make sure you don't break distance selling thresholds
  • Don't let VAT reporting stop you growing your business

Multi channel e-commerce opens up fantastic sales opportunities, but you have to be aware of  your tax obligations. Seller Dynamics helps you manage and handle your VAT obligations, though we do recommend you seek out specialist VAT consultants to help with the admin and registration.

You will need to be registered in at least one EU country if you are selling into the EU. And you'll need an EORI number for customs reporting - you can get this from the member state where you are registed for VAT (or talk to a specialist).

And watch out - marketplaces collect VAT in certain circumstances for EU member states. They do this using their IOSS number - and that number should be included on your customs note.

Marketplaces require you to declare what the VAT rate is for the item when you upload the gross price for an item. They will recalculate the VAT depending on the country the item is being sold in.

Reports from the marketplace will show what orders have had the IOSS process applied to them, this ensures you know when VAT has already been accounted for. You need to declare the VAT for the items sold not showing the IOSS number in the marketplace sales report.

VAT classification for products

Across the EU each product classification group can have it's own VAT level and each country can set that level as they see fit.

Thankfully Seller Dynamics lets you set up those levels to make sure you don't breach the rules when selling.

The use of IOSS marketplace VAT collection has simplified the need to specify VAT rates to some extent. Though teething problems across Europe in 2021 are very common.

Multiple VAT levels and VAT change management

Seller Dynamics lets you set multiple VAT rates for each marketplace you list on.

And you can ensure that the right VAT rate is used when a new VAT level is introduced for a future date.