Personally, I would never believe anything what the Seller Support said.
from our accountant:
They are based on sales in the calendar year (not your financial year) and are as follows:
As long as your sales to these countries are below the thresholds you don’t have to register for VAT in each individual country.
Any sales to non-VAT registered entities in these countries are charged 20% VAT.
In my case I would like to ask: (Sorry if I sound thick!! …but in all fairness sometimes I am LOL )
I sell between 10-15 items per week on Amazon.DE and nowhere near the VAT threshold for this market place. All my stock is in the UK since I like to dispatch everything myself, so nothing with FBA at all.in any Martket places …Would I need to apply for a German Tax certificate ?
Because of the risk of Amazon sending returns to local centres (in Germany etc) this can trigger an issue with their local authorities even though the stock is never sold from there. So perhaps a way to avoid this is to set returnless refunds. Which if course isn’t practical for many.
Maybe if Amazon send returns back to the UK - as they should - we wouldn’t have this nonsense.
This may be out of date for Germany . Amended Vat regulations for Germany which become effective from 01 January 2019 . So you will need to find out from your accountant what the amended tax legislation is regarding Vat in Germany .
I addition to vat in Germany , it seems if you are registered for German Vat you may from now on also need a German Tax Number [ Income Tax ] . I stand corrected but that is my understanding from the message received .
Do not however look at old legislation . Make sure that you are reading legislation that speaks of the 2019 Amendments
So let me get this straight. I sell on Amazon.de from the UK with stock held in the UK and i’m under all German VAT and tax thresholds. Will i still need to sign up for it?
Not quite surew Mark , You may need to investigate what the new tax legislation is in Germany which has come into effect from 01 January 2019 . Or ask a tax specialists or accountant
I just wish that they weren’t so vague about it all. Simply tell us the thresholds and what needs to be done. Like you i have no intention of signing up when i do not sell nearly enough to warrant it, i will shut my .de account down instead. I hate not knowing lol
I got this too , was going to ask what it was about as I have also been asked to send over VAT docs, even though I done that years ago???
The German Tax Certificate is different to the German Vat. I read it as similar to the annual companies house filing / submission that UK ltd companies have to file. - We have just authorised Simply VAT to apply for this form. - it will be an annual certificate, we have been charged a minimum admin fee to apply for it, but they said it can take 8 weeks to come through.
No idea what to do with it once it comes through though, I assume Amazon will tell us in due course (or maybe not)
So you will have if Pan Eu, the VAt number AND the German Tax certificate. - there are no monthly filings with German Tax certificate it is a one off / annual tick box thing.
i got this too. we fulfilled all orders from non uk/europe.
got this notice too.
but we do have listing in all the europe amazon account.
if you need the german tax id, it stated you need to be tax registered i guess you are them considered vat registered as well no?
Amazon are quite clear really as they are advising you to contact your tax advisors which is what you need to do.
You should never look to Amazon for specific or detailed advice (Unless it is about their own policies). They will never give detailed information about tax law or they would be deemed as providing financial advice and that advice would then be classed as a regulated activity.
They are only doing what the UK government did recently and that is attempt to control the VAT evaders and that is something most of us have welcomed. So it should help us in one way but may cause additional admin for some of us.
Thanks Thingimijigs, that actually makes more sense to me - by comparing it to Companies House annual return it helps me understand it better - so I hope your assumptions are correct! I’m guessing it’s not relevant to non DE-stock holding sellers (who are below the threshold) but, as others have mentioned, people should probably seek advice to be sure.
Amazon can’t give us advice for legal reasons, but you would think they would at least provide a link to a website that the German Gov created (or something like that) for some clarity perhaps
Maybe so but in addition to registering for vat , it seems one needs a German Income Tax number as well . So one has to register for German income Tax and unless one is proficient in German you may need to outsource the tax submission process , which means costs that simply are not justified for small time sellers .
Doesn’t this sound familiar to the complaints many overseas sellers were making when they were forcedt to register for UK VAT, just that the shoe is now on the other foot.
Quite possibly and that would be the case for me too. However, those are simply the costs of doing business and if you were doing enough business in Germany then it would be justified. As you are not, it is unlikely to affect you at all apart from reducing some competition from the vat evaders the rules are designed to control.
Magical_Planet, don’t want to throw a spanner in the works and make it more confusing, but you know how in the UK we have this “Making Tax Digital” thing - but the word “Tax” technically means VAT in this case… So the term “German Tax” here may mean it is a VAT related thing (and not personal tax).
(I’m not suggesting this Germany thing is anything to do with Tax Going digital - I’m just referring to how “tax” may mean “VAT” even though many of us have VAT returns, Corporation Tax and Personal Tax to pay and further confuse us with!)
I’m hoping Thingimijigs comparison with Companies House (or something along those lines) is right as that makes more sense for my tiny little (blown) mind!
I’m going to message my accountant but don’t hold much confidence they will be up to date on things like this as they don’t have many outside of UK trading clients. If I hear anything useful I will update on here but I’m pretty confident it doesn’t apply to me as I’m not bothering with EU anymore.
I have seen lots of posts about this everywhere in Amazon Facebook groups.
The e-mail indicates that the sellers will no longer be able to sell on the entire Amazon marketplace if they fail to register. It looks like there will be soon lots of scary suspension threads.