If you sell to customers in the EU, it’s important to understand your VAT obligations to make sure you comply with local tax regulations. Your responsibilities depend on where your business is based and your sales activity in the EU.
If you’re looking for help with VAT compliance, you can also explore services like SimplyVAT or Avalara.
Steps to comply with VAT regulations
If your business is based in the EU:
1. You’ve reached your country’s sales threshold
You may need to register as a VAT payer in your country. Each country sets its own threshold (for example, Germany’s is EUR 12,500). After you’ve registered as a VAT payer, submit your VAT ID to Printful. Once approved, VAT will be charged based on where the order is fulfilled and shipped.
2. You haven’t reached your country’s sales threshold
You’re not required to register as a VAT payer, but you can do so voluntarily. If you don’t register, Printful will charge VAT on orders shipped to EU countries when fulfilled in any of our locations. You won’t need to charge VAT to your customers, but you might want to adjust your retail prices to account for our VAT charges.
If your business is not based in the EU:
You may still need to register as a VAT payer if you sell to EU customers. You can choose which EU country to register in, but this depends on your business strategy.
If you submit a valid VAT ID from an EU country where you’re registered, we’ll apply 0% VAT on orders fulfilled in that same EU country and shipped to customers in other EU destinations. However, if orders are fulfilled and delivered within the same EU country (for example, fulfilled and shipped within Spain), VAT will be charged at that country’s local rate under the OSS scheme.
If you don’t register and don’t submit a VAT ID, we’ll charge VAT on orders going to EU countries when fulfilled from any of our locations. Learn more about this here.
Once you’re VAT-registered
When you’re registered for VAT, you’ll need to:
- Collect VAT on orders going to EU member states.
- Check invoicing and reporting rules in the country where you’re registered.
- File VAT returns and pay VAT to your local tax authorities (deducting any VAT you’ve paid on your supply chain).
- Show VAT charges clearly at checkout for your customers.
What is the EU “distance selling” threshold?
Since July 1, 2021, the EU-wide distance selling threshold is EUR 10,000. If your total cross-border EU sales exceed this:
- You’ll need to register for VAT under the Union scheme (OSS) or in the specific EU country where you sell.
- Learn more about the One Stop Shop (OSS) here.
Helpful resources
Still need help? Our Support Team is here for you—reach out anytime through our contact form or start a chat with us.