E-commerce platforms responsibility for VAT payments progresses will be applied in all Member States of the European Union starting from January 1, 2021. If this responsibility is still not clear, some Member States have taken the lead.
After UK, it’s Germany that tackles the fraud pushing Amazon, Ebay, Otto, Zalando & other marketplaces to make their sellers pay VAT.
E-commerce platforms responsibility in UK :
Initiated starting from 2016 and reinforced since 15th of march 2018, the e-commerce platforms responsibility in VAT have already know an application in the United Kingdom.
Platforms are therefore required to verify that a company established outside the European Union and sells its products to individuals in the United Kingdom has a valid VAT number in the UK.
In the absence of a valid VAT number, the platforms have the obligation to delete the sales account of the company.
If the tax authorities notice that sellers are not registered or do not pay VAT, the platforms have 30 days to delete the seller’s account or to make the seller regularize his situation.
In the absence of regularization or closure of the account within the time limit, the tax authorities may claim the VAT not paid directly from the marketplaces.
E-commerce platforms responsibility in Germany :
The bill providing for the responsibility of e-commerce platforms was adopted on May 25, 2018, with an entry into force scheduled for January 1, 2019. The bill provides for a system very similar to the one already in place in the United Kingdom, except that it applies to all sellers, whether they are established in Germany, in another Member State of the European Union or in a non-Member State of the EU.
Thus, companies that sell their products to German individuals through e-commerce platforms, will soon be claiming a valid German VAT number to continue their business.
ASD Group allows you to quickly obtain a VAT number in the United Kingdom, Germany, but also in all other EU Member States and supports all of your reporting obligations in these states. Do not hesitate to contact us for more information.