One more VAT calculation question for global selling
Hi,
We use Amazon VAT Transactions Report to select transactions for VAT report for goods stored in European Amazon fulfilment centres. As I understand, if goods are stored and delivered from Amazon warehouse in Germany we have to pay VAT in Germany for this transaction.
However, there are different cases:
- Sale from Amazon DE, delivery from Amazon DE
- Sale from Amazon DE, delivery from Amazon FR
- Sale from Amazon FR, delivery from Amazon DE
Please advise which combination incur VAT in Germany.
Thanks
0 replies
Seller_qZO3ZCjoBXEeL
The platform you sell on is irrelevant. It is the location of the customer (and to a certain extent where you ship from) that matters so in answer to your 3 scenarios, there isn’t enough information to determine.
What you need to know:
Where is your business located?
Where was the stock held?
Where is the order being shipped to?
Which EU countries are you VAT registered in?
Have you reached the EU distance selling threshold for the respective country the order is being shipped to?
As you may be understanding, intra-EU multi-jurisdiction VAT issues can be quite complicated - I’d always suggest talking to a tax adviser/accountant that specialises.
Seller_hLn6m62fU0ojt
We are UK based. We registered for VAT in the UK and Germany. We registered for VAT in Germany, because our products are stored in Amazon DE warehouses for FBA.
I’m just asking how to choose which transaction incur VAT in Germany.
I mean, if the product was sold in France and delivered to France from a warehouse in Germany, does it eligible for VAT in Germany?
As I understand your message (The platform you sell on is irrelevant.), we should not take into account “Sale Country” from Amazon VAT Transactions Report. It makes things a bit easier. However, I’m still not sure about the situation when the sales and delivery addresses are not in Germany, but goods were stored in Germany. I mean the only reason for VAT registration for us was that our goods are sored in Germany.
Seller_hLn6m62fU0ojt
BarryM’s explanation is the simplest and very clear, but we have too many “edge cases” as he mentioned as well, that’s why I try to understand it completely.
So I try to summarise it, hopefully, it will be useful for others. I take into account European Union sales only to make it a bit simpler.
For Germany VAT purposes we choose transactions which are:
- DE departure and arrival in DE or another EU country where we are not VAT registered.
- Sold in DE and delivered to DE, but not from DE (delivered from DE covered by the first case).
These rules will help me to set the correct filters in excel report from Amazon (Amazon VAT Transactions Report in FBA reports).
Seller_gUEqxfxeWR96t
Hello, we are based in England and our warehouses are in England, I think we do not have to register for taxes when selling products to Germany.
I have accepted the necessary statement from here. currently You have no pending actions as of now.
Do I have to wait?
Thanks
