Registering for VAT in another EU country is not the same as changing where you pay tax on your profits. This guide separates the two for sole traders and SL companies.
VAT and tax on your profits: two different things
VAT is a consumption tax: you charge it to customers and declare it in each country where you are required to. Personal income tax (if you are a sole trader) and corporate tax (if you have an SL) tax your profits. Having a VAT number in Germany or Italy does not, by itself, change the fact that your sole-trader business or SL pays tax on its profits in Spain.
What stays the same
- Your sole-trader business keeps paying social security and filing income tax in Spain.
- Your SL keeps filing its corporate tax return in Spain.
- Your bookkeeping stays one set of books: sales from each country feed into it.
What does change
- You file VAT in each country where you are registered, on its calendar.
- You need to keep invoices and sales separated by country.
- Each country may ask for different documents and details at registration.
More complex situations exist, such as having a permanent establishment in another country, which can change where profits are taxed. If you think that is your case, get advice before acting. For the Spanish side, see sole trader or company to sell on Amazon.
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) and returns start at €60 per month per country. 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.