VAT number as USA resident? (9)
Hi gang,
I live in the US and am in the process of working on developing some E-commerce stores. As I'm starting to research where else I may want to target I've come across VAT numbers a couple times. Namely, when looking at this website that Pekadis linked to in another thread: https://b2b.vidaxl.com/pages/1-sign-up
I haven't asked their customer service about it yet but it appears the number is required to even entertain using their service.
I didn't even know what a VAT number was before I started Googling (hooray for ignorant Americans). The problem is, Google appears pretty useless for my actual question of whether I should have one and/or how to get one from the US. It also looks like I either need one or should have one if marketing to any EU country. I also can't find much at all on STM about the topic. At least not by searching just thread titles.
Has anyone in the US dealt with getting one or have any insight at all that they can offer to dealing with this? Any and all input in regards to this topic would be very appreciated.
Thanks in advance,
Evan
Could you explain what you want to do? Do you want to drop ship products from China to an EU country? Will you hold stock in EU territory and deliver from there? Depending on what exactly you want to do, the answer is different.
For example, a US company can sell to the EU and in some cases the customer will have to pay customs and VAT when the product arrive, but the US company does not have to charge or register for VAT. It's a different story if you bring your products in a EU based warehouse or so.
Sorry for not being clear.
At this point I'm simply researching dropshipping to EU countries.
As mentioned the whole thing started with this site (https://b2b.vidaxl.com/pages/1-sign-up) being presented as an alternative to Aliexpress and the fact that they seem to require one. I have no idea if I'd even use them but after beating my head against Google for a while, the VAT number seemed worth discussing.
OK - if you drop ship from outside of the EU, from what I talked to my tax consultant, you don't have to add VAT to your invoices and VAT is irrelevant for you. That said, if the item that arrives in the EU country is in a certain category and of a certain price, it can get held up for extra processing, meaning customs tax and VAT, which the customer then has to pay in order to receive the package.
This is a good site to read on for details: http://europa.eu/youreurope/business...l/index_en.htm There are many ifs and buts to the whole law so realistically, if you want to be certain, the only way is to talk to an expert consultant on this topic.
LE: The site above is however in the EU so it's a different situation - I'm not sure how that is treated.
Awesome info. Thanks!
Yea, the site being in the EU is what I'm having the worst time figuring out. It's either unprecedented or I'm terrible at searching. Either way, seemed like something others also may be dealing with or have run into.
VAT law is probably some of the most complicated that you have to deal with even when you have a small business. Sorry I couldn't help more 
No worries. Still, a lot of great info!
This is a tricky one, as it depends on what you do.
If you are exporting from the US and the products go from the US to Europe, your European customer is the importer and has to pay VAT and import duties. No need for you to have a VAT number.
Now, if you sell, but have the item dropshipped from one European country to the other, it becomes a different story. Best to check with an expert on this.
One thing to keep in mind though, is that the VAT number they request, is part of a standard procedure where they just filter out consumers. Supplying your VAT in part of the application process.
So it doesn't mean you'd need a VAT number for tax purposes.
Like @manu mentioned as well, speak to an expert about this.
First of all, VAT is a European thing - it doesnt exist in the US so since you are legally based there it shouldnt be applicable for you(r company).. Secondly, normally there is no VAT when you dropship from China into Europe. There are multiple EU guidelines on this that confirm this. E.g. in spanish: http://asesoriaonlineajc.com/luz-verde-al-dropshipping/ So if you would be based in Spain and dropship from China to any EU country - there would be no VAT applicable.
Anyway this is a very complex topic so the best thing would be to doublecheck this and confirm it with your tax lawyer or account.
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