VAT Registration

Accounting & Taxes
1
  • Hey! I am going to start dropshipping in Netherlands but my company is registered in UK. Is it necessary to register VAT number?
    If it is necessary than should I register UK VAT number or Netherlands VAT number?
2

Hi @Ahmer491

VAT registration depends on where your goods are shipped from and your revenue.

If you’re shipping directly from suppliers (no NL warehouse), start with UK VAT & OSS. If you scale past €10K in EU sales, get Netherlands VAT

3

Hi Promer.

10 K rules is not applicable to non EU established companies. A UK based company that has no permanent establishment in the EU cannot apply this rule.

4

HI Ahmer,

If you intend to keep stock of items (technically drop shipping means exactly that - you purchase items B2B in the Netherlands from the Dropshipper and you ship B2C from there ) in the Netherlands and fulfil from there to all other EU countries, you need to have a Dutch VAT registration and Union OSS scheme registration ( it allows you to supply to the rest 26 countries from the Netherlands). If you are going to import goods into the Netherlands and keep them there in a warehouse for further fulfillment you may need to have a fiscal representative there , that will allow you to employ Article 23 rule, i.e. you would not have to pay VAT to the customs but account for it on your internal VAT report (like postpone VAT accounting (PVA) in the UK).

All above does not have any bearing onto your UK VAT status , you still may be or may not be registered for UK VAT and use NL VAT /Union OSS.

We can provide both NL VAT and Union OSS services to you. Do get in touch www.easproject.com

5

Hi @Rostislav

Thank you for sharing me this valuable information.

I will note it, I really appreciate it!

6

10000EUR threshold is not applicable to micro companies not based in the EU . UK based company that holds no permanent establishment in the EU cannot use this rule. Further , if one wants to dropship from the Netherlands to all the EU countries, one needs both Dutch VAT and Union OSS registration. And the final one, one cannot “charge VAT based on the UK rules”| below 10000 EUR threshold due to the above mentioned reason and due to the fact that UK is not member of EU and as such EU rules for microbusinesses cannot be applied to the UK companies. Please, do not leave misleading comments , you may put other people in illegal and potentially risky situations