If you want to purchase a product from a Wholesale Supplier in any of the below listed 27 European Union Countries but you are wondering if the Wholesale Supplier is legitimate, we’ll be discussing how to verify your Wholesale Supplier with the European Union Countries.
- Republic of Cyprus
- Czech Republic
Check if your European Wholesaler price affordable than Retails price rates
To verify your Wholesale Supplier, the first thing to look at is the price of the product. Wholesalers generally have lower product prices compared to Retailers because they purchase products directly from the Manufacturer.
Check if your European Wholesaler is following the appropriate EU VAT rules
Another key factor to look at is if the Wholesaler is charging you the correct VAT following the EU VAT regulations.
There are certain instances when a Wholesaler ought not to charge you any VAT.
For example if you are a VAT registered Business in the European Union purchasing product from a Wholesaler within the European Union.The European Union Supplier ought not to charge you any VAT, however you have the obligation to declare and pay VAT on the transaction as if you had sold the goods yourself, at the applicable rate in your country.
To illustrate this further, if you are a VAT registered Business in Germany and you bought some products from a Wholesaler in France. Assuming the VAT on the products is 1,000 Euros according to France VAT rate, the France Wholesale supplier is not required to charge you that 1,000 Euros VAT.
However, you will calculate the VAT due to the product based on Germany’s VAT. For example if the German VAT rate sums up to 700 Euros, you’ll declare and pay that 700 Euros VAT to the German Government.
If the products you purchased from the France supplier were used in the course of your Business (and not for your personal use), You can usually deduct 700 Euros later on when you make your VAT declaration.
In this case the 700 Euros will be your Input VAT because it was spent while purchasing products for your Business. Your output VAT, is the VAT which is charged on products you sell to Consumers.
So Assuming you sold some products to consumers who paid 1000 Euros VAT. When making your VAT declaration you can sunstract the 700 Euros input VAT from the 1000 Euros output VAT and pay the 300 Euros VAT to the German Government.
To verify your Wholesaler in the EU, you need to pay attention that they are charging you the appropriate VAT or not charging you VAT where required.
To know the different instances in which a Wholesaler Supplier in the EU ought to charge or not charge you VAT, go to the direct link in the Europa webpage you will see a quick form where you can select your trading situation i.e VAT within the EU, VAT outside the EU, buying, selling etc
Once you fill the quick form it would return yoh with the answer of what VAT rules applies to your trading situation.
Check if your European Wholesaler is VAT-register
A legitimate Wholesaler within the European Union would normally be VAT registered.
You can check if your European Union Wholesale is VAT registered by going this Europa VAT verification webpage and Entering the VAT number of your Supplier to verify the details.
These steps can guide you in confirming the authenticity of a wholesale supplier operating within the European Union.