Why VAT free your listing when you’re an international online seller?
Launching online businesses in new markets is perceived as a desirable undertaking. This is mainly due to the fact that global eCommerce is constantly developing, and the chance to access an entirely new customer base is more realistic than ever before.
Apart from the growth that trading abroad can bring, there are a myriad of legal and financial regulations that online sellers must comply with, no matter which country the business is based in and which location it intends to ship to. Tax and VAT regulations seem to be the greatest and the most complex ones. While nothing can replace advice from local legal authorities, this post will try to outline the main benefits stemming from adjusting VAT for all European online traders, something Webinterpret easily offers to its international sellers with the inclusion of a Deduct VAT feature in the user interface.
European retailers usually assume that listing in the USA and Australia is risky mainly because they are too far away or because they differ too much from Europe. However, listing on eBay in the USA and Australia is actually even more profitable for European retailers who are registered for VAT than for their counterparts who are actually located in the USA or Australia. The reason? They simply do not have to pay VAT when selling into these countries if they are registered for VAT. This means that their products can be more competitive in terms of price which can be up to 20% lower. Data analyzed on 300 professional sellers showed that sellers who removed their VAT in Australia and the USA have increased their sales by 100% in those countries.
Below you can find an infographic that shows a summary of the main benefits deriving from the removal of VAT. If you are already convinced, feel free to alter your settings in our brand new Deduct VAT feature.