Are you an online retailer with customers in the EU?
If you have a non-EU based business that regularly sells goods to customers in the EU, you should know that VAT must be applied to all purchases as of July 2021. The most straightforward way to do that is to charge your buyers VAT at purchase, the administration of which has been simplified via the introduction of the IOSS (Import One Stop Shop) system. However, you still need to choose an EU country to register in as a VAT payer and submit VAT reports. Sellers who do not have a company in the EU need a local intermediary who is also financially liable for their tax obligations. Such intermediaries are hard to find and costly.
As a cost-effective and sustainable solution, we suggest you set up an EU company that can handle VAT registration and payment for you through the IOSS. Save on your costs and offer better prices as well as better experience to your customers.
Why should I choose Hungary as my EU base?
- Company setup within 4-5 business days
- Immediate EU VAT number at company registration
- Easy access to the IOSS
- Competent, English-speaking accountant handling reporting
- Remote setup and management available
While in most EU countries you can only get a VAT number after a serious inspection and application process, which takes months, in Hungary we can register your company in a few days and your EU VAT number will be issued immediately, so you can start trading.
Hungary is a member of the European Union, and its central location and advanced infrastructure make it an ideal place to establish your EU headquarters. Incorporation is available to owners of any nationality, without any restrictions: you can be the sole owner, without local associates. You can set up your company in just a few days, and you immediately get an EU VAT number, a prerequisite for registration for the IOSS. You can also take advantage of our dedicated accounting team who will handle VAT declaration on your company’s behalf, as well as our network of logistics partners (as needed).
Selling your products to EU customers
When you sell goods to end-customers in the European Union from your non-EU based business, VAT must be paid and declared in the country where your customer receives your merchandise. The IOSS system makes it possible for you to register for VAT in just one EU country (of your choice) and declare all your VAT obligations (incurred in any EU country) in one place. Packages with an IOSS ID are easily processed through customs and can reach your buyers sooner. If you are using the IOSS, you are also required to add VAT to your prices at the time of sale, making them more transparent, while also relieving buyers from declaring and paying VAT separately. It’s a win-win for everyone involved.
In order to take advantage of the IOSS platform, you need to be registered for VAT in the EU. This can be done via getting a tax number and doing your business through an intermediary, or setting up your own EU company and saving on both costs and time. Having your own base in the EU puts you in control of your costs, shipping and administrative processes.
How does IOSS benefit your business?
You can make the most of IOSS if this applies to you:
- The value of packages sent to your EU customer is typically under EUR 150 (without shipping and taxes)
- The products you sell are not subject to excise duty (such as tobacco or alcohol)
When you are registered in the IOSS, you can enjoy the following advantages:
- No customs duty applies to your shipments, so delivery is quick and easy
- You can pay VAT in one bulk payment and file only a single report
Let the Helpers Team help your business grow
Helpers Hungary offers assistance both in company formation and accounting. With almost 20 years of experience, our main focus is providing business services to foreigners living, working, and doing business in Hungary. If you decide to take advantage of the IOSS, you can count on our expertise, our ongoing support, and access to our network.
Want to learn more about the IOSS? Click here.
Want to proceed with Hungarian company setup? Fill in the form below.
Found this article useful? Share it with your followers, and like us on Facebook to never miss an update to our blog.
The post Are you an online retailer with customers in the EU? appeared first on HELPERS.
