The Seller is exclusively responsible for:
- Registering for VAT in their member state of residence where required by national law
- Charging and remitting VAT on sales where applicable
- Issuing invoices that comply with EU VAT Directive (2006/112/EC) requirements
- Applying the reverse charge mechanism for eligible cross-border B2B sales within the EU
- Declaring income in accordance with the tax laws of their country of residence
2. Platform Responsibilities
The Platform:
- Provides annual sales summary to sellers
- Reports gross sales to authorities (when required by applicable EU or member state law)
- Is NOT responsible for seller's tax compliance
- Does NOT withhold taxes at source
3. VAT Registration Notice
IMPORTANT: If your annual turnover exceeds the VAT registration threshold in your member state of residence (e.g., EUR 15,000 in many EU member states, though thresholds vary), you are required to register for VAT and charge VAT on your sales. Non-compliance may result in penalties from your national tax authority.
Estonian e-Residency holders operating through Estonian companies (such as ITTO OÜ) should note that Estonian companies are required to register for VAT when taxable turnover exceeds EUR 40,000 in a calendar year. Consult a tax advisor or contact the Estonian Tax and Customs Board (Maksu- ja Tolliamet) for specific guidance.