When is the electronic interface involved in the ordering or delivery of goods?
a) The concept of ‘being involved in the ordering or delivery of goods’
According to Article 5b(2)(c) of the VAT Implementing Regulation if the taxable person operating an electronic interface is either directly or indirectly involved in the ordering or delivery of the goods, he facilitates the supply of goods and falls under the deemed supplier provision.
The concept of ‘being involved in the ordering or delivery of goods’ should be interpreted broadly.
The involvement in the ordering of goods does not necessarily mean that the electronic interface is involved in generating the purchase order, but refers to situations where the electronic interface can influence in any way the ordering of goods.
The concept of ‘being involved in the delivery of goods’ is not limited to the physical delivery of goods, which may or may not be arranged/carried out by or on behalf of the electronic interface. It refers to situations where the electronic interface can in any way influence the delivery of goods.
b) Examples of activities falling under this concept
Different elements/characteristics can be indicative of a taxable person operating an electronic interface being involved in the ordering or delivery of goods. In order to draw the final conclusion, all the features of the supply need to be taken into account. Nonetheless, below are some examples (not cumulative and not exhaustive) of activities suggesting that the electronic interface is involved in the ordering or delivery of goods:
- The electronic interface provides the technical tool to take the order from the customer (typically the shopping cart/check-out process)
- The electronic interface communicates the confirmation and/or details of the order to the customer and to the underlying supplier
- The electronic interface charges to the underlying supplier a fee or commission based on the order’s value
- The electronic interface sends approval to start delivery of the goods/instructs the underlying supplier or a third party to deliver the goods
- The electronic interface provides fulfilment services to the underlying supplier
- The electronic interface organises the delivery of the goods
- The electronic interface communicates details of the delivery to the customer
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