If you sell through a Spanish sole-trader business or a Spanish company (SL) and you store goods in another European country, for example with Pan-EU FBA, you will usually need to register for VAT there. The common question is whether anything changes depending on whether you are a sole trader or a company. In short: the procedure is the same and the paperwork is what changes.
Are being self-employed and VAT the same thing?
No. Being self-employed is your work status: social security contributions and income tax. VAT is a consumption tax that you charge on sales and file returns for. Both a sole trader and a company charge and declare VAT, and in each EU country where you must register you will have your own VAT number and your own returns.
When you need a VAT number in another country
- You store stock in another country (for example with Pan-EU FBA): you normally need a local VAT registration there. See VAT numbers in Europe by country.
- You sell from your country to consumers in other EU countries: the One-Stop Shop (OSS) and the €10,000 threshold come into play. We explain it in the guide to EU ecommerce VAT and OSS.
- You move your own goods from one country to another: this can create registration duties in the destination country.
What changes if you are a sole trader or a company
In both cases the process starts from your existing tax ID. A sole trader is identified as an individual and proves the business activity. A company is identified as a legal entity and proves who represents it. Each country may ask for different documents, such as certificates, translations or legalisation, and requirements and deadlines vary and change. Check what is current with each country’s tax office before you file anything.
General step by step
- Confirm in which countries you need a VAT number, based on where you store stock and where you sell.
- Gather the identification and activity documents for your sole-trader business or your company.
- Apply for registration with each country’s tax office, in its format and language.
- Receive the number and check it is valid in VIES.
- File periodic returns following each country’s calendar.
Common mistakes
- Storing stock in a country without being registered there.
- Ignoring transfers of goods between countries.
- Not filing returns for periods without sales, which many countries still require.
- Assuming one country’s VAT number works in another.
For the names and formats by country see VAT numbers in Europe by country and Spanish and Italian VAT numbers for Amazon sellers.
How we help
We register your VAT in each country and file your returns, with the official proof of every filing. Registration is a one-off fee per country (from €280 for Germany, France, Italy and Spain, the same price for sole traders, SL or OÜ) and return management starts at €60 per month per country. If you already have a VAT number, the transfer is free. We confirm scope and price in writing before we start. Tell us your case.
Official sources: European Commission, Taxation and Customs · VIES · Spanish Tax Agency.
Related: Pan-EU FBA or EFN · VAT in another EU country and your income or corporate tax