Eurpean VAT numbers- help!

[Tabitha]

I have never been asked to use a VAT number when shipping to European countries, untill now. What do I do with it? This will be a sizeable wholesale order, I guess that is why they want it used.

http://en.wikipedia.org/wiki/Value_added_tax

 

[Lindy]

Tabitha it would seem to me that since you are not physically located in that country you aren't required to have a VAT #, just like if you were selling into Canada you are not required to have a GST # since that tax is collected as it clears customs.

I would contact customs for the country you are shipping into to see what, if anything you are required to do with regards to their VAT. The only thing I can think of for selling into the EU is their labelling and testing requirements.......

 

[madpiano]

I am in the uk and don't have a vat number as my turnover is too small. I would contact them and explain that you don't have one as you are not based in their country or your turnover doesn't require you to have one. If you are not based in the EU they will also have to get all of your products assessed by a European cosmetic chemist. Otherwise these cannot be sold legally here

 

[Lindy]

Madpiano I was wondering about that. In Europe you have so many more restrictions than we have in North America..... thank you for letting us know about that requirement.

A friend of mine just had a big group buy out of Spain and because they wanted it all in 2 boxes to save on shipping rather than having them sent out individually it turned into a customs nightmare.....

 

[madpiano]

to be honest, it would be much cheaper for them to order within the EU. Less or no customs and no worries about the certification. If you are using US FOs, then they can't be certified at all. (well they can, but it would be major headache and would require the US FO manufacturer to reveal their formula). Not wanting to knock it, I hope the sale goes well for you (customs, shipping and the certification isn't really your problem)

 

[dagmar88]

Couldn't answer this before, but had a business class today...
The VAT number is only important for Europeans ordering form other Europeans; in that case you won't have to pay sales tax; because you're already paying that in your own country.

For example, my future business is based in the Netherlands and I order fragrance oils from Gracefruit; then I won't have to pay English sales taxes.

This is only within European borders; so it isn't worth anything when your USA based and exporting to Europe, or when your European and ordering from the USA.

 

[Tabitha]

Right. I did not use a VAT. I just got mixed messages when I googled so I wanted to know if anyone had 1st hand experience with it.

It would have been cheaper for her to order local but I can asure you my product is unique and not available anywhere else :wink: . She could have easily hired somone to copy-cat it but chose not too and I appreciate that.

 

[madpiano]

I am glad you made that sale, sounds very good and hopefully you will get more orders.