VAT'S IMPORTANT - NEWSLETTER 2021 - 01

Updated: Feb 11



 

NEWSLETTER 2021- 02


VATastic AG- OUR NEW COMPANY

REGULATIONS ON MARKETPLACES IN GERMANY AS OF JULY 1, 2021


 

VATastic - OUR NEW COMPANY SPECIALIZING IN VAT AND CUSTOMS


It is a great pleasure for us sending you our first vat’s important from our VATastic account today.Sometimes it needs the right people around you, the specific vision and a bit of courage to take this venture of a new company. All mentioned conditions are fulfilled; we can perform with great people and with our global VAT / Customs knowledge, the idea was born by COVID and the courage to jump into the deep end was there as well. 
Our vat’s important newsletter will be published as usual every one to two months. Also, in the future we will comment on current topics, court decisions or “hot news” from the field of VAT and customs.


We also look forward to hearing from you


Mónika Molnár
 Anita Machin

monika.molnar@vatastic.ch anita.machin@vatastic.ch

Florian Hanslik
 Jane Jachnow

florian.hanslik@vatastic.ch jane.jachnow@vatastic.ch


 


REGULATIONS ON MARKETPLACES IN GERMANY AS OF JULY 1, 2021


In a letter dated April 20, 2021, the Federal Ministry of Finance in Germany is adapting the VAT Application Decree with regard to the regulations on marketplace liability, which already came into force on January 1, 2019.


As of January 1, 2019, the legislator in Germany added two new articles to the VAT Act (article on record-keeping requirements for online marketplaces and article on online marketplace liability). As of July 1, 2021, to prove the tax registration of the online merchant, the online marketplace must no longer only keep the registration certificate of the online merchant, but in particular also record the VAT-ID issued to the online merchant by the Federal Central Tax Office. There are the following exceptions to this:



- Provided that the online merchant carries out non-taxable distance sales in Germany (turnover threshold not exceeded) and therefore does not have a German VAT ID, the online marketplacemay record the VAT ID issued to the online merchant by another Member State.


- If the online merchant participates in the OSS procedure, the online marketplace may record the VAT ID of the Member State in which the online merchant has applied for the OSS procedure.


- If the online merchant imports goods with a material value of more than EUR 150 from a third country (= non-EU country) and therefore there is no obligation to record them for tax purposes in Germany, the online merchant must provide the marketplace with suitable proof (e.g. submission of a corresponding declaration by the online merchant).


- In addition, as of July 1, 2021, the online marketplace must receive the following information:

Electronic address or website of the supplying trader.

Bank details or the number of the supplier's virtual account - if known

Description of the item being delivered; and

Purchase order number or unique transaction number.


However, the tax authorities do not object if, until August 15, 2021, the online marketplace only has the online trader's registration certificate instead of the VAT ID issued to the online trader by the Federal Central Tax Office.


Despite compliance with the recording obligations, the online marketplace is liable if it had knowledge or should have known with the due diligence of a prudent businessman that the online merchant was not complying with its VAT obligations or not complying with them in full. Regardless of knowledge, the online marketplace is always liable if the online merchant does not have a valid VAT ID issued by the Federal Central Tax Office at the time of delivery or if the online marketplace does not have alternative proof in the exceptional cases.


What do I have to consider as an entrepreneur?


The online marketplace must request and record the German VAT ID from the relevant online traders on its marketplace. The online marketplace is only liable if it successfully checks the validity of the German VAT ID. For this purpose, there is the possibility of a qualified query at the Federal Central Tax Office as of July 1, 2021. In case of non-compliance, the Federal Central Tax Office will unfortunately not provide any further information. Swiss companies that use online marketplaces in Germany and would like to support their business partners in a benevolent manner must ensure that their data is regularly checked and adjusted against the German onlinemarketplaces.


 

We look forward to continuing to support you in your Swiss and global VAT and customs matters and are at your disposal for any questions you may have. 



Best regards from your VATastic team


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