In this article we review how VAT works on Marketplace sales, how the applicable rate is determined and in which cases the customer’s country or the country from which the goods are shipped is relevant. At the end you will find practical examples, a specific section on our Fulfillment service and a FAQ section.
VAT (Value Added Tax) is an indirect tax applied to consumption. In our case, for a product sale through the Marketplace:
- The seller issues the invoice to the customer including the corresponding VAT.
- The customer pays the VAT together with the product price.
- The seller pays that VAT to the relevant Tax Authority in their periodic tax returns.
How much VAT is applied?
- It depends on:
- The type of product (standard, reduced, super-reduced, exempt).
- The country whose VAT rules apply to that sale.
- In Spain, the standard rate is 21 %, but this may differ in other EU countries.
Why it is important to charge the correct VAT:
- Because it is a legal requirement and there may be penalties if the wrong rate is applied.
- Because it affects the final price and the competitiveness of your offers.
- Because it affects the accounting and tax returns of your business.
In the European Union there are two key ideas for B2C (consumer) sales of goods:
- The place where the goods are located at the start of the shipment (the warehouse country).
- The customer’s country of destination (when certain thresholds are exceeded or when the One Stop Shop – OSS – scheme is used).
– If you sell from an EU country to customers in the same country, you apply that country’s VAT.
– If you sell to customers in other EU countries and exceed the annual threshold (€10,000 EU-wide) or opt into OSS, you normally apply the VAT of the customer’s country.
When do you invoice VAT according to the warehouse country?
- If you have a warehouse in another EU country (for example, France) and you ship from there to French customers:
- The sale is treated as a domestic transaction in France.
- You must be VAT-registered in France and invoice with French VAT.
- The same applies if you use a third-party warehouse in another country (your own or Fulfillment) and the goods leave that country to customers in that same country.
In other words:
- Domestic sales (customer in the same country as the warehouse) ⟶ VAT of the warehouse country.
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Intra-EU B2C sales to other EU countries:
- If you do not exceed the threshold and do not use OSS: normally the VAT of the warehouse country.
- If you exceed the threshold or use OSS: VAT of the customer’s country.
Example 1 – Spanish seller with warehouse in Spain (sales to Spain)
- Spanish company, warehouse in Murcia.
- Consumer customer in Madrid.
- The goods leave Spain and are delivered in Spain.
Result: Spanish VAT is applied (for example, 21 %).
Example 2 – Spanish seller with warehouse in Spain (sales to EU customers, low turnover)
- Spanish company, warehouse in Valencia.
- B2C sales to customers in Portugal, France and Italy.
- Total intra-EU B2C turnover < €10,000 per year.
Result (usual case): the seller may continue applying Spanish VAT to those sales, unless they voluntarily opt into OSS to apply VAT of the customer’s country.
Example 3 – Spanish seller with warehouse in Spain (sales to EU customers, high turnover)
- Same scenario as above, but intra-EU B2C turnover is now > €10,000 per year.
- The seller is registered under the OSS (One Stop Shop) scheme.
Result: the seller must apply the VAT of the customer’s country (for example, French VAT for customers in France, Italian VAT for customers in Italy, etc.).
Example 4 – German seller with warehouse in Germany (sales to Spain, above the Spanish threshold)
- German company, warehouse in Berlin.
- The company is not VAT-registered in Spain.
- It sells to many consumer customers in Spain and exceeds the threshold.
Result: in practice, the seller will have to account for Spanish VAT on those sales to Spanish customers (via OSS, depending on its situation).
If you use a Fulfillment service and your stock is stored in a specific country, this country is normally considered the place from which the shipment to the customer begins.
Example 5 – Foreign seller using Fulfillment in Spain (sales to Spanish customers)
- Company established outside Spain.
- Its stock is stored in a Fulfillment warehouse in Spain.
- It sells to consumer customers in Spain.
Result: the sale is considered to take place in Spain and, in general, Spanish VAT applies. It is common for the seller to need a Spanish VAT ID or for the operation to be structured through the Marketplace itself, depending on the applicable legal/tax model.
Example 6 – Seller using Fulfillment in Spain (sales to other EU countries)
- Stock stored in Spain.
- Consumer customer in France, Italy or Portugal.
Result (summary):
- If the seller does not exceed the threshold and is not in OSS, they may apply Spanish VAT (according to applicable regulations).
- If they exceed the threshold or opt into OSS, they must apply the VAT of the customer’s country (French, Italian, etc.).
When is VAT NOT applied to a sale?
For example, on certain exports to non-EU countries or on intra-EU B2B sales to companies with a valid VAT number (exempt in the country of origin), or the sale of some second-hand goods depending on the scheme used. These are more technical situations and must be checked with a tax advisor.
Is VAT always applied according to the customer’s country?
Not always. For B2C sales within the EU, VAT of the customer’s country is normally applied when you exceed the €10,000 intra-EU B2C sales threshold or when you opt into OSS. Otherwise, in certain cases the VAT of the country from which the goods are shipped may still apply.
What happens if I have several warehouses in different countries?
Each warehouse may generate VAT obligations in that country. It is common to need one or more local VAT registrations or to use OSS. It is essential to have a clear control of:
- Where your stock is located at any given time.
- From which country each order is shipped.
- Your sales volume by destination country.
If I use Fulfillment, does PcComponentes handle VAT for me?
No. Even if the stock is in our warehouse, you remain fully responsible for complying with your tax obligations (registration, VAT returns, OSS, etc.), unless the law or a different type of agreement explicitly provides otherwise. For this reason, it is essential that you review this with your tax advisor.
Does PcComponentes calculate and pay the VAT on sales made through its Marketplace?
Our Marketplace does not operate under the “deemed supplier” regime under EU VAT rules. This means that, for all your sales, the shop remains the seller for VAT purposes (the taxable person) and the only party responsible for charging, reporting and paying the corresponding VAT, as well as complying with all related tax obligations (including OSS registration or applying for local VAT numbers). It is essential that you discuss these aspects with your tax advisor.
To make sure you apply VAT correctly according to your specific situation, we recommend:
- Consulting your usual tax advisor or accountancy firm.
- Reviewing the official information from your national Tax Authority.
- If you sell to several EU countries, informing yourselves about the OSS (One Stop Shop) scheme.
From here, you can adapt your operations in our Marketplace so that your prices, invoices and stock flows are consistent with the VAT rules applicable in each case.