Is opening a VAT number always required to sell online? Here’s the reference legislation and how to proceed depending on the sales channel and the different methods.
Occasional Sales vs. Regular Sales
One of the core principles regarding VAT is the distinction between occasional sales and regular sales. The difference does not depend on the income generated, but on how the activity is carried out.
If an occasional sale happens sporadically and without organization, continuity, or generating business income, regular sales occur when the activity is characterized by consistency and continuity.
In all cases where a taxpayer engages in commercial activity regularly and continuously, opening a VAT number is mandatory.
Online Sales with a VAT Number: Full Case Analysis
Online sales can take place through a wide range of channels, from a full-fledged e-commerce to second-hand sales, and more innovative models such as dropshipping and reselling. Reviewing each case is essential to identify the fiscal obligations related to each type.
E-commerce
E-commerce should be considered equivalent to a physical store, operated by a single business, and aimed at selling various types of goods.
It is a structured and organized virtual store that requires opening a VAT number along with other tax obligations for electronic commerce.
Marketplace
Unlike e-commerce, a marketplace (such as Amazon or eBay, to name a few) is an online platform that hosts numerous sellers. If these sellers operate systematically, regularly, and not just occasionally, they are certainly required to open a VAT number.
Dropshipping
Dropshipping is also considered a continuous and professional commercial activity, thus making the VAT number mandatory.
Its peculiarity lies in selling retail products in partnership with one or more external suppliers, who ship the purchased goods directly to the buyer, allowing the seller to avoid managing shipping and storage.
Reselling
Reselling consists of selling a highly sought-after or discontinued product at a higher price. If this activity is carried out regularly and in an organized manner, opening a VAT number is required.
Second-hand
In the case of second-hand sales, it is always necessary to evaluate the sales method to determine whether specific tax obligations apply.
There are no requirements if the sale is occasional and sporadic. However, if it is carried out regularly and continuously, even in this case, it requires formalization through opening a VAT number.
