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How do I pay VAT on orders in the EU?


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VAT (Value-added tax) will be applied to your orders based on where the brand is shipping the products from, and to, at the point of sale. The VAT number that you enter on Faire should be validated for intra-community trade by the VAT Information Exchange System (VIES).

Use this tool to check if your VAT number is VIES validated.

There are 3 different types of orders you may place on Faire:

  1. Domestic orders
    When a brand in one EU member state ships goods to a retailer in the same EU member state. Ex: A brand ships goods from the Netherlands to a retailer in the Netherlands.
  2. Intra-community orders
    When a brand in one EU member state ships goods to a retailer in another EU member state. For a full list of EU member states, check this article on the European Union’s official website. Ex: A brand ships goods from Italy to a retailer in the Netherlands.
  3. International orders
    When a brand outside of the EU ships goods to a retailer in an EU member state.
    • Ex: A brand ships goods from the U.S. to a retailer in the Netherlands.
    • Ex: A brand ships goods from India to a retailer in the Netherlands.
    • Ex: A brand ships goods from the U.K. to a retailer in the Netherlands (the U.K. is no longer an EU member state due to Brexit).

Domestic orders

For any products shipped domestically, we will collect VAT from you at checkout as long as the brand is VAT registered, and then we will remit this VAT to the brand as part of their order payout. In the event that you are purchasing from a non VAT-registered brand, we will not charge any VAT on the transaction.

If the brand is located in another EU country, but is shipping the products within the same country as you, then we will check to see if your country allows for a domestic reverse charge. If so, then we will not collect any VAT on the order and indicate on your invoice that no VAT was collected due to the reverse charge.

If not, then we will collect VAT at checkout and remit this VAT to the brand as part of the brand’s order payout.


Intra-community orders

For intra-community supplies, the 0% rate for VAT will apply where the retailer is VAT registered, and VIES validated. We’ll note on the invoice that the order is considered an intra-community supply for your records. You are responsible for accounting for this transaction in your VAT returns.

If you are not VAT registered, then we will charge VAT in the destination country.


International orders

For any products that a brand ships from outside the EU, VAT will not be charged at checkout. Any applicable VAT will be charged at the border when importing your products.

If you’re a VAT-registered retailer, you should be entitled to reclaim import VAT.

For more information on VAT implications for your business, visit Importing to Europe and consult your tax advisor.

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