A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally based on the increase in value of a product or service at each stage of production or distribution.
Distance sales (mainly for online sellers) are intra-community sales between an e-commerce and a final consumer (B2C) Once the sales threshold in a member country is exceeded, the online seller is obliged to request a VAT number and pay VAT in that country.
Distance selling threshold:
|EU member state||Threshold||Currency|
Each member country has its own schedule. The registration process for a VAT number varies from 6 to 8 weeks.
The amazon pan-European FBA is a program that includes the following countries: Germany, United Kingdom, France, Spain, Italy, Poland and Czech Republic. If you join this program, the products are automatically moved from Amazon to the 7 countries mentioned above. Before activating pan-European you need to be aware that to use a warehouse in another member country you need to be in possession of a VAT number, so if you adhere to this program the VAT number is mandatory.
|Country||Country Code||Super Reduced Rate (%)||Reduced Rate (%)||Standard Rate (%)|
|Austria||AT||-||10 / 13||20|
|Belgium||BE||-||6 / 12||21|
|Croatia||HR||-||5 / 13||25|
|Cyprus||CY||-||5 / 9||19|
|Czech Republic||CZ||-||10 / 15||21|
|Finland||FI||-||10 / 14||24|
|France||FR||2,1||5,5 / 10||20|
|Greece||GR||-||6 / 13||24|
|Hungary||HU||-||5 / 18||27|
|Ireland||IE||4,8||9 / 13,5||23|
|Italy||IT||4||5 / 10||22|
|Lithuania||LT||-||5 / 9||21|
|Malta||MT||-||5 / 7||18|
|Poland||PL||-||5 / 8||23|
|Portugal||PT||-||6 / 13||23|
|Romania||RO||-||5 / 9||19|
|Sweden||SE||-||6 / 12||25|
* Zero rates are not included above.