VAT registration abroad is an obligation that arises with certain forms of sale to another country. For ordinary sales of goods to end customers within the European Union, the obligation can be simplified through the One Stop Shop scheme, under which a company pays tax for all member states at once through its domestic tax administration. This scheme does not, however, cover all situations – if a company stores goods in another country, for example in a marketplace's warehouse, or provides certain services with the place of supply abroad, it must register there directly and file local returns. In some states, a tax representative is also required. Underestimating this obligation is among the most costly mistakes made during expansion, since additional payments are recovered retroactively together with interest.
See also: OSS and VAT for sales into the EU, Marketplace as a market entry channel, Logistics and customs.
