Thinking about EU VAT?

Joseph Cox
August 21, 2020
12 min read
March 7, 2024

Thinking about EU VAT?


Thinking about PAN EU VAT?

As Amazon make it easier and easier to trade across Europe, plus with Brexit fast approaching, more and more of our clients are starting to think about registering for VAT in the EU. This post aims to cover the most common questions that we get asked about PAN EU VAT.


Do you have clients who operate on PAN EU?

Yes, many of our clients are registered for VAT in various EU jurisdictions.

I want to register for PAN EU VAT can you do this for me?

No, unfortunately we only handle UK VAT.

Do you handle EU VAT Registration or compliance?

No, same as above, we do not do this.

How can I register for EU VAT - Who do you recommend?

We recommend that you use SimplyVAT for EU VAT registration.

Please note that the above is a referral link and any income generated goes towards our annual staff party. Although we receive a referral commission, we do genuinely recommend Simply VAT as the service our clients report is excellent.

What happens to my UK VAT when I register for PAN EU?

You still need to complete your UK VAT returns as normal each quarter.

However, when calculating your UK VAT care should be taken to ensure that you are not duplicating or missing any orders on your UK or EU VAT returns. More on this and how we handle it below.

If I register for EU VAT will you still handle my UK VAT returns?

Yes. If you are a UK business we will still be your UK accountant and will be responsible for your UK VAT returns. Your EU VAT provider will be responsible for your EU VAT returns.

How do you know that I am not paying VAT twice for the same order on my UK VAT/EU VAT return(s)?

VAT on physical product sales can be calculated in two different ways.

One is based on the location that the goods are shipped from and the other is based on where they arrive/where the customer is based.

Because of this, there is a risk that if your UK accountant and EU accountant use different approaches, that transactions will accidentally be duplicated or omitted on various VAT returns.

At Ecommerce Accountants we avoid this problem by ensuring that you confirm the approach that your EU accountant is taking  with us. So long as we are using the same approach (and you update us if there is a change), this will not happen. More on this in points below.

What report do you use from Amazon to calculate my VAT?

We use the Amazon VAT Calculation Report. This can be found in the following location:

Reports > Fulfilment by Amazon > Amazon VAT Transactions Report

Amazon offers “one year free” PAN EU Registration - Is this genuinely free?

Yes, many of our clients have taken Amazon up on this offer and we can confirm that it is a genuine offer.

What have you heard about Amazon’s free PAN EU registration service? Do you recommend it?

We have had a lot of anecdotal evidence to suggest that the service level and the experience with the Amazon VAT service is very poor. Therefore we cannot recommend it on that basis.

However, due to the large cost saving, if you are a smaller business and are willing to put up with a substandard service then it will definitely be better for your cashflow.

What happens after “one year free”

After the free year, many people ask us to refer them to another provider.

When this happens we refer our clients to SimplyVAT.

We always hear that our clients have received a great service from them.

For Businesses Registered for EU VAT

This section relates to questions that people ask when they have begun the process of EU VAT registration.

What information do I need to give you when my business registers for EU VAT?

When you register for VAT in any EU jurisdiction, you must tell us the effective date of registration in that country.

This is important because it is from this date that you will be preparing EU VAT returns and, if we do not have the correct date, there is a risk that we will duplicate or miss VAT on your UK VAT return.

Do I need to give you any other information when my business registered for EU VAT?

When you register for EU VAT, you must confirm with your EU VAT accountant how they will be calculating your EU VAT.

The reason for this is that there are two approaches:

  1. The VAT liability is calculated based on the country the goods are shipped from
  2. The VAT liability is calculated based on the country that the goods arrive (when distance selling threshold "DST" breached)

We are flexible and can work with either method. However, it is imperative that we know which approach the EU VAT accountant is using so that there is no risk that your records contain errors.

Any other questions?

If you have any other questions please email us or, if you aren't yet a client, please click the Instant Quote button above.

Need an accountant? Get in touch today. See how we can take your business to the next level, together.