Legal Requirements
Selling online involves complying with several legal requirements. Terms of sale, withdrawal rights, GDPR, and invoicing: here is everything you need to put in place to stay compliant.
What legal requirements apply to online selling?
In the European Union, online sales are governed by consumer protection directives and national commercial codes. Every e-commerce website must comply with a set of rules to protect consumers and ensure transparent transactions.
Madra helps you set up the mandatory elements, but it is your responsibility to verify that the content is adapted to your business. When in doubt, consult a legal professional.
Are terms of sale mandatory?
Yes. Terms of Sale (or Terms and Conditions) are mandatory for any website that sells products or services online. They must be accessible and accepted by the customer before completing their order.
- Seller identity — Business name, address, registration number, VAT number, and contact details.
- Product or service description — Essential characteristics of what you sell.
- Pricing — Price including taxes, shipping costs, and payment methods.
- Delivery — Delivery times, geographic areas served, and any applicable fees.
- Right of withdrawal — Conditions and timeframes for withdrawal (see next section).
- Warranties — Legal guarantee of conformity (2 years under EU law) and hidden defects warranty.
- Dispute resolution — Contact information for the consumer mediator in case of disputes.
- Data protection — Reference to your privacy policy.
How does the right of withdrawal work?
The right of withdrawal allows your customer to return a product purchased online within 14 calendar days from receipt, without having to justify their decision.
- 14-day period — The customer has 14 days after receiving the product to exercise their right of withdrawal.
- Refund within 14 days — You must refund the customer within 14 days of the withdrawal notification, including the initial shipping costs.
- Return shipping costs — Unless stated otherwise in your terms of sale, return shipping costs may be borne by the customer.
- Exceptions — Certain products are excluded from the right of withdrawal: custom-made products, perishable goods, downloaded digital content, and unsealed hygiene or health products.
- Withdrawal form — You must provide a standard withdrawal form, as required by EU consumer protection directives.
How does GDPR apply to your store?
The General Data Protection Regulation (GDPR) governs the collection and processing of your customers' personal data. As an online seller, you necessarily collect personal data (name, email, address, purchase history).
- Privacy policy — Write a privacy policy that explains what data you collect, why, and how long you keep it. See GDPR.
- Cookie consent — Display a cookie banner to collect visitor consent before placing non-essential cookies. See Cookies.
- Right of access and deletion — Your customers can request access to their data or ask you to delete it. You must respond within one month.
- Data security — Implement technical measures to protect your customers' data. With Madra and Stripe, sensitive data is encrypted and stored securely.
What are the invoicing and VAT rules?
Each sale must result in an invoice or receipt. Invoicing rules depend on your legal status and tax regime.
- Mandatory invoicing — You must provide an invoice for each order. Madra can automatically generate invoices with your order information.
- Required information — Invoice number, date, seller and buyer identity, product description, price excluding tax, VAT rate, and total amount including tax.
- VAT — If you are VAT-registered, you must collect and remit it. Small businesses under the VAT exemption threshold must note this on their invoices.
- Record keeping — Invoices must be kept for 10 years.
The information on this page is provided for informational purposes only and does not constitute legal advice. Regulations change regularly. We recommend consulting a lawyer or accountant to verify your legal compliance.
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