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Sales of goods through electronic interface to consumer

Date: 2021-10-29

Dnr: 8-1293055

1 Summary

The Swedish Tax Agency makes the assessment that the provisions on electronic interfaces that enable certain sales do not cover such transactions that mean that a company mediates goods in its own name.

The Swedish Tax Agency considers that ch. Section 10 of the Value Added Tax Act (1994: 200), ML, shall only be applied if the goods are physically located within the EU and originate in the EU or have entered into free circulation at the time the tax liability for turnover arises, ie when the non-taxable person’s payment has been approved. .

In the case of distance selling of goods in consignments with a fair value of no more than 150 euros imported from a country outside the EU that takes place in several sales stages, there are no special provisions on which sales stage the transport is to be attributed in the case of ch. 2 g § ML is not applicable, e.g. in the case of sales covered by ch. 6 7 § ML. In order to achieve the purpose of the provisions, the Swedish Tax Agency considers that in the application of ch. 2 f § ML, the transport in such a situation shall be attributed to the last sales stage.

2 Question

On July 1, 2021, new rules were introduced for distance selling of goods. They mean that imports of low-value goods must also be taxed and that in the case of intra-Union distance selling of goods to consumers, the national thresholds are removed. The VAT should normally go to the country where the final consumer is located and the transport of the goods ends. To facilitate this handling, the special arrangements have been extended. Definitions for distance selling and new rules for companies that enable certain trade through electronic interfaces have also been introduced.

Consumer in this position refers to non-taxable persons and taxable persons who do not make intra-Union acquisitions.

Through this position, the Swedish Tax Agency gives its view on the following issues.

  • Includes the provisions in Chapter 6. §§ 9 and 10 ML on electronic interfaces also mediation in one’s own name or do the provisions only cover mediation in another’s name?
  • What is meant by enabling “turnover of goods within the EU” in ch. 10 § ML?
  • To which sales should the transport be attributed in the case of distance selling of goods imported from a country outside the EU, in the case of several stages of sale?

3 Applicable law etc.

If someone in their own name mediates a good on behalf of another and collects the proceeds for the good, in assessing the tax liability for the sale of the good, this shall be considered sold both by him and by his principal (Chapter 6, Section 7 ML, cf. Article 14 (2) (c) of Council Directive 2006 / 112 / EC on a common system of value added tax, VAT Directive).

If a taxable person through the use of an electronic interface enables distance selling of goods imported from a country outside the EU in consignments with a fair value of no more than 150 euros, the taxable person shall be considered to have acquired and traded these goods himself in assessing the tax liability (Chapter 6. § 9 first paragraph ML, compare Article 14a (1) of the VAT Directive).

If a taxable person through the use of an electronic interface enables the sale of goods within the EU from a taxable person who is not established in the EU to someone who is not a taxable person, in assessing the tax liability, the person who enables the sale shall be considered to have acquired and traded these goods (Chapter 6, Section 10, first paragraph ML, cf. Article 14a (2) of the VAT Directive).

Electronic interface refers to a marketplace, a platform, portal or equivalent (Chapter 6, Section 9, second paragraph and Section 10, second paragraph ML).

The term “enable” refers to the use of an electronic interface that enables a customer and a seller who offer goods for sale via the electronic interface to get in touch with each other in a way that leads to a delivery of goods through the electronic interface. (Article 5b, first paragraph, of Council Implementing Regulation [EU] No 282/2011).

If a taxable person has acquired and sold goods according to ch. § 9 or 10, the obligation to pay tax for both the acquisition and the turnover arises when the payment has been approved (Chapter 1, Section 5 b, first paragraph ML, cf. Article 66a of the VAT Directive).

In the case of distance sales of goods imported from a country outside the EU to Sweden, the goods are sold within the country if the shipment or transport to the buyer ends here and VAT for the goods must be reported according to the Act (2011: 1245) on special VAT arrangements for distance sales of goods and services or according to regulations that in another EU country correspond to the special scheme. In the case of distance selling of goods imported from a country outside the EU to another EU country, the goods are traded within the country if the shipment or transport to the buyer ends here (Chapter 5, Section 2 f § ML, cf. Article 33 b and c of the VAT Directive).

If a taxable person is considered to have acquired and sold a good in accordance with ch. Section 9 or 10, the transport of the goods shall be attributed to turnover (Chapter 5, Section 2 g, ML, cf. Article 36b of the VAT Directive).

4 Assessment

4.1 Mediation of goods in their own name

ML contains provisions on who is liable to pay tax in special cases. One of these provisions is found in Chapter 6. § 7 ML which means that when a taxable person in his own name mediates a good on behalf of another and receives payment for the good, both shall be considered to have sold the good in the assessment of the tax liability. The person who mediates goods in his own name is therefore counted according to this provision as the seller for the sale to the consumer. This provision applies to all transactions relating to the brokerage of goods in one’s own name, ie also transactions that take place in one’s own name from one’s own website.

In the event that the company that has an electronic interface mediates goods in someone else’s name, this company must still in some cases be considered a seller. This applies to the transactions that mean that the company enables the use of an electronic interface

  • distance selling of goods imported from a non-EU country in consignments with a fair value of up to EUR 150 or
  • turnover of goods within the EU from a taxable person who is not established in the EU to a consumer.

The Swedish Tax Agency makes the assessment that the provisions on electronic interfaces that enable certain sales do not cover such transactions that mean that a company mediates goods in its own name. The companies are already considered as the sellers for the transactions to consumers according to ch. 7 § ML. The provisions in ch. 6 Sections 9 and 10 ML apply only in the event that the company is not already considered by other provisions in ML as the seller of the goods. The provisions in ch. 6 Sections 9 and 10 ML thus only apply when other actors mediate goods than those who mediate in their own name.

4.2 “Sales of goods within the EU”

A company should be considered a seller when this company, through the use of an electronic interface, enables the sale of goods within the EU from a taxable person who is not established in the EU to a non-taxable person.

The Swedish Tax Agency considers that ch. Section 10 ML shall only be applied if the goods are physically located within the EU and originate in the EU or have been released for free circulation at the time when the tax liability for the turnover arises, ie when the non-taxable person’s payment has been approved. According to the Swedish Tax Agency’s assessment, this means that the goods must be transported from one place within the EU to another place within the EU. The provision cannot be applied if the goods are transported from a place outside the EU or if the goods are in a customs warehouse located within the EU. However, there is no requirement that transport must be cross-border. Sales of goods where the transport takes place between two places within one and the same country can thus be covered by the provision.

4.3 Transport

In the case of distance sales of goods imported from a country outside the EU to Sweden, the goods are sold within the country if the shipment or transport to the consumer ends here and VAT for the goods must be reported through the import scheme.

In the case of distance selling of goods in consignments with a fair value of no more than 150 euros imported from a country outside the EU that takes place in several sales stages, there are no special provisions on which sales stage the transport is to be attributed in the case of ch. 2 g § ML is not applicable, e.g. in the case of sales covered by ch. 6 7 § ML. In order to achieve the purpose of the provisions, that taxation shall take place in the country of destination without the consumer having to pay import VAT, the Tax Agency considers that in the application of ch. § 2 f ML, the transport in such a situation shall be attributed to the last sales stage. This means that other transactions that have taken place earlier in the sales chain have taken place without transport.

Source: skatteverket.se

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