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‘VAT certificate’ mandatory for E-commerce sellers in Germany

Companies selling in Germany at market places such as Amazon, Real and eBay must hand over a certificate to their platform before 1 October 2019 stating that they are registered in the German VAT register. Entrepreneurs who are not liable for VAT must submit their own declaration.

This is reported by the trade magazine about online business, Emerce. Germany is ahead of Brussels’ plans to combat VAT fraud and has adopted a law to prevent VAT fraud from online sellers from outside the EU (the “Gesetz zur Vermeidung von Umsatzsteuerausfällen beim Handel mit Waren im Internet und zur Änderung weiterer steuerlicher Vorschriften ‘). Online market places are required by this law to guarantee their platform vendors who do not pay sales tax. The VAT certificate is only issued at the request of the entrepreneur and must be applied for at a German tax office (Finanzamt). Marketplace sellers who are not liable for VAT must submit their own declaration to the marketplace before 1 October 2019 that they do not require a certificate. The trade journal warns that sellers who do not have this on time will no longer be allowed to sell via market places in Germany from 1 October.

Source Wolters Kluwer

Due to a new German law, Dutch companies selling in Germany at market places such as Amazon, Real and eBay must have taken action by October 1, 2019. Who is not on time will be blocked. Amazon is the most important marketplace for Dutch brands to sell in Germany. According to Handelsverbandes Deutschland (HDE) “Online Monitor 2018”, 46 percent of German e-commerce turnover is now realized by Amazon.

In 2017, the European Commission submitted a proposal for new EU rules on VAT. According to this proposal, by 2021 all European web stores will have to pay sales tax in the Member State where their buyer comes from. Now the seller’s Member State is arrested. The Dutch tax authorities will have to carry out the international VAT payment.

Germany is ahead of Brussels’ plans. In November 2018, the “Gesetz zur Vermeidung von Umsatzsteuerausfällen beim Handel mit Waren im Internet und zur Änderung weiterer steuerlicher Vorschriften” was adopted in Germany. Translated, this is the “Law on the avoidance of VAT defaults when trading goods on the internet and for changes to further tax regulations”. The law is an important tool in the German government’s fight against VAT fraud by online sellers from outside the EU.

Market places are required by this law to act as a guarantor for their platform vendors who do not pay sales tax. Marketplaces such as Ebay and Amazon therefore oblige their sales taxable vendors to hand over a certificate before October 1, 2019: the “Bescheinigungen nach § 22f UStG”. This confirms that the seller is registered in a German VAT register. This certificate is only issued at the request of the entrepreneur and must be requested from a German tax office (Finanzamt). Marketplace sellers who are not liable for VAT must submit their own declaration to the marketplace before 1 October 2019 that they do not require a certificate. Sellers who do not yet have this in order can no longer sell through market places in Germany.

When are you liable for VAT in Germany?

– Your company is based in Germany, for example as GmbH or UG;

– You sell a total of more than 100,000 euros per year in Germany to private individuals;

– You send products from Germany, via a distribution partner or via Amazon FBA

Source Emerce.


 

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