When will Amazon sellers register for German VAT?

2022-11-21
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Author:Blue Ocean Yiguan
Source: egainnews

When will Amazon sellers of cross-border e-commerce platform register for German VAT?

If it is aimed at German consumers, or to do German e-commerce market, Amazon UK site sellers may need aGerman VAT No(VAT).

In fact, without this tax number, the seller cannot use Amazon FBA logistics in Germany, and cannot place inventory in Germany.

Lanhaiyiguan learned that there are two VAT rates in Germany.

One is 7% for water, food, books and other products, and the other is 19% for all other products and services,Amazon sellers basically apply the VAT rate of 19%

1. When does an Amazon seller need a German VAT number?

Suppose the seller sells on Amazon. de. If the following three situations occur, the German VAT number is required:

a. The inventory is placed in the UK and directly used to deliver German consumer orders. Since July 1 this year,"Long distance sales threshold" no longer applies, the seller can use the non union OSS of the non EU mechanism instead of registering the German VAT ID

b. The seller uses Amazon FBA logistics, or the inventory is placed at a third-party logistics provider in Germany

c. The seller exports goods from Germany to other European countries and wants to use the EU's mini one-stop shop (MOSS)

As for the "distance sales threshold", previously, if the seller shipped goods from the United Kingdom to other EU countries, it was necessary to pay attention to this distance sales threshold, which was calculated separately for each EU country.

When will Amazon sellers going overseas register for German VAT?

Lanhaiyiguan learned that the threshold for each EU country is 10000 euros a year. If the seller's sales to an EU country exceed this threshold, all products sold to that country will be subject to VAT.

But sinceBrexitSince then, the "remote sales threshold" is no longer applicable. When Amazon sellers carry out sales business in EU countries, they must immediately register VAT tax numbers in the corresponding countries.

With regard to the use of Amazon FBA logistics, in fact, the inventory is placed in Amazon's German warehouse, shipped from the local warehouse in Germany, and delivered to German consumers. Therefore, the seller is obligated to pay VAT in Germany.

In addition, if the inventory is delivered from a German warehouse to a British consumer, German VAT is also applicable. Compared with the UK VAT, this can save the seller 1%.

When will Amazon sellers going overseas register for German VAT?

In conclusion, as long as any of the above situations occurs, the seller should register a VAT number with the German tax office.

2. What if the seller does not have a German VAT number?

From October 31, 2019, Amazon will force qualified sellers to register VAT. Otherwise, Amazon will require sellers to retrieve inventory within 30 days.

If the seller fails to retrieve the inventory within the time limit, Amazon will directly destroy it. Many sellers faced the risk of inventory destruction last year.

Now, if the seller cannot provide the German VAT number, or even send the inventory to Amazon's German warehouse.

3. Do you start business directly after registering German VAT number?

not always.

As long as the seller has registered a VAT number with the German tax bureau, he/she must be responsible for paying VAT, that is, the seller needs to submit a VAT declaration form in Germany, which is submitted monthly.

In addition, the seller shall submit annual VAT return for the total income of the year.

After the first year, VAT returns should be submitted quarterly, such as from January to March and April to June. Annual VAT returns still need to be submitted.

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