Expanding in Europe and entering new markets is what most online sellers using FBA want to achieve. Of course, there are tax obligations that come along with the business growth. Being VAT registered in one country could not be enough if you reach the annual threshold limit in a country you are selling to. What is meant by that and which treshold limits can found in Spain, read more to find out.
VAT Threshold Limit: Spain
As mentioned in the first paragraph, there a different reasons that make a VAT registration necessary. As we focus on the threshold limit, let’s start with a brief explanation. If you are selling abroad from Germany, the country you are storing (and VAT registrered) in, to Spain for example, the German VAT number is sufficient as long as you don’t reach the Annual VAT Threshold limit in Spain.
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What does that mean?
You need to get a VAT number when you are selling goods to a country via distance selling and reach the annual threshold limit of this country. So being registered in the country where your goods are stored is not enough anymore.
For example: You are an FBA seller who is based and VAT registrered exclusively in Germany and you are selling goods to several European countries. The annual threshold limit for Spain is 35 000 €. So if your turnover of goods sold from Germany to Spain exceeds this number, your German VAT number is not enough anymore and you will need to get a Spanish VAT number.
Further registrations will be required for each and every additional country in which you threshold limit for distance selling within one calendar year.
|VAT Threshold Limit Spain||35 000 €||~38 000 USD|