Multi channel e-commerce opens up fantastic sales opportunities, but you have to be aware of your tax obligations. Seller Dynamics helps you manage and handle your VAT obligations, though we do recommend you seek out specialist VAT consultants to help with the admin and registration.
You will need to be registered in at least one EU country if you are selling into the EU. And you'll need an EORI number for customs reporting - you can get this from the member state where you are registed for VAT (or talk to a specialist).
And watch out - marketplaces collect VAT in certain circumstances for EU member states. They do this using their IOSS number - and that number should be included on your customs note.
Marketplaces require you to declare what the VAT rate is for the item when you upload the gross price for an item. They will recalculate the VAT depending on the country the item is being sold in.
Reports from the marketplace will show what orders have had the IOSS process applied to them, this ensures you know when VAT has already been accounted for. You need to declare the VAT for the items sold not showing the IOSS number in the marketplace sales report.