Advice Needed: Managing EU Online Sales from Spain for a China-Registered Business

[Purulence666]

Hello Shopify Community,

I'm seeking guidance related to operating my online business, which is registered in China. I'm based and will be managing the business from Spain, and my target market is the European Union, with a focus on Spain and the UK.

Key Points I Need Advice On:

1. Tax Compliance: Considering my business is registered in China but operated from Spain, what specific tax obligations should I be aware of for EU online sales?

2. VAT Requirements: For a business like mine, what are the VAT considerations when selling in the EU from a China-registered, Spain-operated business?

3. Regulatory Compliance: What regulations and compliance issues should I be particularly mindful of when conducting cross-border e-commerce in these regions?

I am committed to ensuring full compliance with all relevant tax, VAT, and regulatory requirements in these jurisdictions. Any insights, experiences, or resources you could provide would be immensely helpful.

Thank you for your support and guidance!

[TeemuEAS]

Dear Purulence666, 

Where you has no effect on compliance, only where the business is registered and where you are shipping from, i.e., warehousing the goods. There are no compliance demands for simply operating a business from a different country from establishment. Ok, a notable exception: working in the same country where you are warehousing goods wakes up the tax officials and they will simply slap you with something called Fixed Establishment. Avoid at all cost 🙂 And if you cannot avoid, talk to us at EAS Project! 

I am assuming you are shipping directly from China then. If the products sold are below 150€ (0% tax, without shipping), they are applicable for IOSS. IOSS facilitates simplified customs procedure and collection and payment of VATs by the seller. You will need an intermediary for IOSS + automation, again just get in touch with us at EAS. 

The best is to just book a meeting with us via our website, we will have your mind at ease in 15min and business cross-border ready in just a few days!

https://apps.shopify.com/eas-eu-compliance