VAT, OSS and DAC7: the taxation of selling independent fashion online in Europe

1. The price you set already includes VAT

On Werop, the price of each garment is a retail price with VAT included, and is valid for all delivery countries: a buyer from Lisbon and one from Madrid see the same figure. When you sell, Werop transfers that price minus its commission. It does not withhold VAT or any other tax: you declare and pay the VAT on the sale, as with any sale from your store.

This means that if you sell to a country with a different VAT rate than yours and you have to apply it (see point 2), what you keep changes: the panel shows you on each product page «what you keep per country» and in My store → Payments, the table of rates for the ten countries.

2. What VAT you apply to each sale

Sales within your country

The VAT of your country, at the general rate for clothing and footwear. Nothing changes compared to your physical store or your website.

Sales to private individuals in other EU countries

This is the rule for distance sales: as long as you do not exceed 10.000 € per year in sales to private individuals in other Member States (summing all your channels: Werop, your website, other marketplaces), you continue to apply the VAT of your country and declare it as always. If you exceed that figure, or if you decide to anticipate it, you apply the VAT of the buyer's country and declare it in the One Stop Shop (OSS): a registration in your own Administration and a single quarterly declaration for all countries, without registering in each one.

In the panel, you choose your regime in My store → Payments («VAT of my country» or «VAT of the buyer's country»), and Werop uses this data only to show you what you keep: the obligation and the declaration are yours.

The rates in Werop countries

General rates in force on 9 October 2026, checked in the European Commission's VAT rates database (TEDB) and in the administrations of Luxembourg and Ireland. This is the same table used by the panel.

3. Werop's commission and its VAT

Werop charges 12 % on the price with VAT of each garment sold (shipping does not pay commission) and, as it is a company established in Spain, this commission includes Spanish VAT of 21 %, which you deduct if you are under the general regime. Both amounts are deducted from the payment of each sale.

If your store is in another EU country and your intra-community VAT number is verified in VIES, the commission is VAT-exempt: the invoice includes the reverse charge mention and you self-assess it in your country (in practice, neutral). That's why registration asks for this number, even if it's optional.

Each month, Werop issues you the invoice for its commissions for the closed month; you download it in Payments, within the panel.

4. Who invoices the buyer

The sale is yours: Werop is the intermediary that provides the showcase, payment, and shipping, but the purchase contract is between your store and the buyer, and each product page shows who is selling. Werop sends the buyer the order confirmation, not an invoice. As almost all buyers are private individuals, what your country requires for sales to consumers is sufficient (in Spain, a simplified invoice); if a buyer asks you for a full invoice, you issue it with their details. In Payments, you have each order with its amount, date, and delivery country.

5. DAC7: what Werop reports about your store

The European DAC7 directive obliges platforms to report annually on sellers using their services. Werop, as a platform operator in Spain, submits before 31 January (form 238) the stores that in the previous year had 30 sales or more, or received 2.000 € or more: tax identification, address and, quarter by quarter, the amount received, the number of sales, and commissions. Your Administration receives it through automatic exchange between States.

You receive a copy of what was reported, by mail and in Payments, before that date, so that it matches your declaration. That's why registration asks for the legal form and date of birth (self-employed) or the commercial registry number (companies), and every three years we ask you to confirm your tax data. DAC7 is not a new tax: the Administration uses it to cross-reference what you already declare.

6. What is not available on Werop

• Customs or IOSS. Werop only accepts stores from the EU and only delivers within the EU: neither the United Kingdom, nor Switzerland, nor Norway.
• Territories with a different VAT regime. No shipping to the Canary Islands, Ceuta, Melilla, Madeira, or Azores, nor are stores with their workshop or address there accepted.
• Withholdings. Werop does not withhold personal income tax or any other tax; it charges its commission and transfers the rest.

7. Checklist for your advisor

1. You are registered as self-employed or a company in your country, with the tax identifier requested during registration.
2. You know how much you sell remotely to private individuals in other EU countries, summing all your channels, and if you are approaching the 10.000 € annual limit.
3. You have chosen the regime you apply in My store → Payments (origin or destination with OSS).
4. If you are outside Spain, your intra-community VAT number is in the panel and verified: the commission is VAT-exempt.
5. You keep Werop's monthly invoices (Payments) and, each January, the DAC7 communication.

This guide is a general orientation with a date, written by the Werop team based on EU regulations and how the platform works. It does not replace the advice of your tax advisor, who knows your specific case and the particularities of your country.