Sale occur without VAT
We have rather strange issue where sale took place without VAT.
We’re signed up to amazon VAT calculation service. Now transaction details for some orders show 0% VAT.
These sales are definitely VAT applicable. After downloading amazon’s invoices for these sales there’s a link in invoice to EC regulation about goods which are VAT-exempt. Even if this product is really exempt from VAT, all previous sales of this product did include VAT.
Seller support doesn’t want to respond to our questions for 2 weeks already.
Could anyone help us about this issue please?
18 replies
Seller_EHYOwAkoZV3Hb
Have you set your vat codes correctly for each product? Don’t forget that you are the one who assigns vat codes, not Amazon.
Or maybe the sales are to EU business customers or to countries where vat is not charged or for example Channel Islands.
Seller_saK5Ah2SaNYjL
Was it going to the Channel Islands? They don’t charge VAT on those.
Seller_0pkMTMROIPEmY
Sales accross EU where a business buyer provides a VAT number are VAT exempt, I.e. if your a UK VAT registered Business customer that has provided a UK VAT Number importing from Germany from a VAT registered business the sale should be VAT exempt
If you sell to B2B customers in another EU country you are not required to charge VAT if a number of conditions are met. In Germany these conditions, as set out on the Tax Authority’s website, are as follows:
a supply from Germany to a customer in another EU country is liable to the zero rate where:
you obtain and show on your VAT sales invoice your customers’ EU VAT registration number, including the 2-letter country prefix code, and the goods are sent or transported out of Germany a destination in another EU country, and
you obtain and keep valid commercial evidence that the goods have been removed from Germany within the time limits set by BZSt.
Seller_NVUWYXV7bj9Q1
Ok thanks guys for your input. Now picture is more clear. We will continue working with seller support and hopefully solve it in the end.
Seller_SHpe5c4eREBFN
As I understand it the seller needs to keep a record of the buyers vat number to justify the sale being vat exempt. I don’t think it is good enough for Amazon alone to have this information and it should be passed to the seller along with full company details, name address etc.
Seller_zSbTCA94WTB7g
There’s definitely an issue on B2B sales to Italy - no tax charged - which is correct - but these orders do not show as business orders. Tax reports show Italian VAT number etc. In fact, I don’t think any B2B orders are showing the BUSINESS BUYER flag in the EU marketplaces - only GB.
