Preparation and set-up of opting-out applications regarding VAT

The rationale behind opting-out can be for some a little complicated, this is why amavat^® are here to help and assist you.

VAT taxpayers selling online to buyers within the EU Member States have to be aware of standard VAT rate for each country. For example, the standard VAT rate in Poland is 23%*, but in neighbouring Germany it is only 19%*. Thus, if you live in Poland and are paying your VAT in Poland, potentially you are losing out on 4% of profit. It would then make sense for you to pay your VAT in Germany (if you are already VAT Registered there), rather than Poland (where you would also be VAT Registered). Of course this applies if you have not yet reached the relevant threshold, and be aware that in Poland there is a one month period after you have opted-out. So you would apply to Poland to opt-out of paying your VAT there.

This example clearly shows there is room for manoeuvring with the right set of circumstances for your online business.

Our local tax and eCommerce experts in each EU country are uniquely positioned to assist you in however many countries you are selling into, why not contact us?

*as of June 2019