Accountable supports e-commerce for self-employed individuals in Belgium, covering local sales and EU sales under €10,000 per year where you collect VAT yourself. This article explains how VAT applies to different e-commerce situations and what Accountable can handle for you.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
In this article, you will also find a breakdown of how e-commerce platforms handle VAT and a full overview of what Accountable covers.
What is e-commerce?
E-commerce refers to the buying and selling of goods and services over the internet. Different forms of selling in this digital landscape include business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B) transactions.
VAT applies differently depending on the type of client (B2B or B2C), the location of your clients (locally, within the EU, or outside the EU), and the total amount of income you generate.
E-commerce platforms typically facilitate these transactions, giving sellers a space to showcase their products and connect with potential buyers.
Example e-commerce platforms
Amazon FBA: A global marketplace covering a wide range of product categories.
Etsy: Focused on handmade, vintage, and unique items.
Bol.com: Dutch online marketplace dedicated to goods in the Netherlands and Belgium.
Shopify: An e-commerce platform that lets users create their own online stores.
How much VAT applies when selling via e-commerce?
VAT rates by situation
As a self-employed person in Belgium, the VAT you charge depends on your specific situation:
Local sales: If you sell only locally, you apply 21% VAT and are required to collect and remit Belgian VAT yourself.
Sales within the EU (under €10,000/year): You can either charge and remit local VAT for each sale, or, for simplicity, apply 21% Belgian VAT and then declare and pay the VAT to the FOD in Belgium.
Sales within the EU (above €10,000/year): Once you reach €10,000 of sales per year, you are required to charge VAT locally (e.g. 20% in France, 19% in Germany). You can declare and pay VAT in each country, or through the One-Stop-Shop platform.
Note for franchisees: As long as you sell under €10,000 annually within the EU, you do not charge VAT. Make sure to set up your e-commerce platform correctly (register as a private seller if there is no franchisee option). Once you reach the €10,000 threshold of EU sales, you must register as subject to VAT, collect VAT locally, and declare and pay via the OSS platform (see below).
Handling VAT in the EU: OSS and IOSS
OSS (One-Stop Shop)
The OSS is a simplification measure that allows businesses to declare and pay VAT on their B2C sales of goods and certain services within the EU through a single online portal. This is particularly useful for sellers operating across multiple EU member states.
If your e-commerce business involves selling within the EU and your annual sales exceed €10,000, you can declare VAT in each country, or choose the OSS to reduce the administrative burden.
IOSS (Import One-Stop Shop)
For businesses importing goods into the EU with a value not exceeding €150 per sale, the IOSS system applies. This is particularly relevant for sellers engaged in cross-border e-commerce transactions (also known as dropshipping).
With the IOSS, VAT on imported goods can be declared and paid through a single EU member state, simplifying the process for sellers and giving customers a smoother experience.
What does Accountable cover for e-commerce?
Accountable covers your e-commerce business if you sell within the EU with annual sales under €10,000 and you collect VAT yourself. If you use the OSS or IOSS for your EU sales, you will need a specialist to handle those declarations outside Accountable.
How do e-commerce platforms handle VAT?
If you sell goods on Etsy or Shopify, the platform usually remits VAT on your behalf and excludes that amount from your payouts. This means you do not need to declare and pay VAT to the tax office yourself.
Amazon usually suggests their dedicated partners to manage your accounting and taxes.
Other platforms (Eversport, Bol.com for example) let you decide how much VAT is collected, and you are responsible for declaring VAT to the FOD.
When does Accountable cover your e-commerce business?
You sell only locally and collect VAT yourself.
You sell within the EU, with annual sales under €10,000, and you collect VAT independently.
You are a franchisee and sell under €10,000 per year outside your country.
When should you consult a Tax Coach?
You are subject to VAT and sell via platforms like Etsy, where VAT is remitted for you.
You need to charge foreign VAT rates.
You are involved in dropshipping or IOSS.
You declare VAT abroad or under the OSS regime.
You sell outside your country for significant amounts.
You cannot trace the location of each transaction.
Scan expenses | Record revenue | Prepare and file VAT | Prepare and file income tax | |
Local e-commerce | ✅ | ✅ | ✅ | ✅ |
Franchisee with e-commerce sales in the EU below €10,000/year | ✅ | ✅ | ✅ | ✅ |
EU sales under €10,000/year, local VAT collected and declared by you | ✅ | ✅ | ✅ | ✅ |
Charging foreign VAT rates | ✅ | ❌ | ❌ | ❌ |
Selling through Etsy or equivalent, where VAT is remitted for you | ✅ | ❌ | ❌ | ❌ |
Dropshipping / IOSS regime | ✅ | ❌ | ❌ | ❌ |
OSS or e-commerce income in the EU above €10,000/year | ✅ | ❌ | ❌ | ❌ |
Key takeaways
Accountable covers local e-commerce and EU sales under €10,000/year where you collect and declare VAT yourself.
Above €10,000 in EU sales, you must charge local VAT rates and can use the OSS platform to simplify declarations. Accountable does not cover OSS or IOSS filings.
Platforms like Etsy and Shopify remit VAT on your behalf. Accountable cannot record revenue or file VAT for these situations.
For dropshipping, foreign VAT rates, or OSS filings, consult your Tax Coach in Accountable.
Need help? Chat with us or email support@accountable.eu, we're happy to help.