EU sale tax collection responsibility
Hi guys
If you are selling on EU marketplaces, we know Amazon will collect VAT on sales and pay to relevant authority. So we expect little VAT to be paid by seller during VAT return. That's what is happening during the past year (less than €100 for monthly return) but till recent several month, it suddenly jumps to €400 - €500.
This arises a big question, why sudden jump? If you look at the Column "CQ" of the Amazon Transactions Report, which shows the vat collection responsibility either by Marketplace (which is Amazon) or Seller. This means for some sales, Amazon has not collected the VAT and the seller needs to pay it by themselves during the VAT return.
If above is the case, it still works because it is fine for seller to pay VAT if Amazon has not deducted VAT from order payment. But the thing is after detailed investigation of one order, which was a business order shipped from Germany to Spain with deffered payment, the price was VAT-exclusive but the order is showing tax collection responsibility under seller.
how does it work if I am paid with VAT-exclusive price but I still need to pay VAT during my return? has anyone else seen this before?
Many thanks
1 reply
Seller_MT8rt0A2OpbCx
We don't sell outside UK, but I believe B2B to two different EU countries would be reverse charged, so you would have no VAT to pay and the buyer would use reverse charge on their return, i.e. no VAT for them to pay or claim.
