Infopage EU VAT Regulation 2021
On 1 July 2021, the countries of the European Union (EU) introduced a new VAT regulation for e-commerce (“EU Digital Package 2021”) which will affect your sales of goods to EU consumers via online marketplaces and therefore also via Kaufland Global Marketplace.
Aim of the regulations
- country-specific sales tax registration obligations are standardized
- existing VAT fraud gap in the European e-commerce, amounting to billions of euros, is closed.
Who is affected by the changes?
- You are a seller based in the EU and deliver goods from a warehouse outside the EU
- You are a seller based in the EU and do not have a German VAT ID and a German tax number registered in our system, or you use the OSS procedure
- You are a seller from a non-EU country, such as China, the USA or the UK, and the value of the shipment does not exceed 150 euros.
The changes are not relevant for you if your company headquarters is in Germany, you do not ship products from outside of the EU and you sell exclusively to customers in Germany.
What did change since July 1, 2021?
Kaufland Global Marketplace will be considered a “Deemed Supplier” in the following situations and will be obliged to calculate and pay VAT on B2C sales of goods on Kaufland Global Marketplace.
You are affected by this change if you have the following transactions for B2C sales on Kaufland Global Marketplace:
- Shipments of goods sent from an EU location to an EU customer if the seller is not located in the EU
- Shipments of goods sent from a non-EU location to an EU customer if the value of the shipment does not exceed 150 euros.
Existing country-specific delivery thresholds for distance sales of goods within the EU will be abolished and replaced by a new EU-wide threshold of 10,000 euros. If you have exceeded the delivery threshold you will be subject to registration in every member state in which you make distance sales.
Based on operational decisions, we will treat sellers who fall below the new delivery threshold in the same way as those who fall above it
Introduction of the special reporting procedure “One-Stop-Shop” (OSS) which enables sellers to centrally pay VAT on their distance sales throughout the EU with a single VAT registration application. In this way, registration in several EU member states can be avoided. Independently of this regulation, the German VAT Act in 22f (1) No. 3 requires the application of a German VAT ID for all sellers who sell goods to German end customers.
An exception applies to sellers based in the EU who use the OSS procedure. This means that you can either submit a German VAT ID and a German tax number in the seller portal on Kaufland.de, or you use the OSS and submit the VAT ID of the Member State in which you have registered in the OSS.
Abolition of the import VAT exemption for import of goods with a value of up to 22 euros which makes all consignments of goods subject to import VAT from 1 July 2021. Through the new “Import-One-Stop-Shop” (IOSS) procedure, consignments of goods with a value of up to 150 euros can be exempted from import VAT in the future.
You are affected by the change if you import goods into the EU and if the value of the consignment does not exceed 150 euros.
What did change for sellers after July 1 in case a “Deemed Supplier” model applies?
Kaufland Global Marketplace will be treated under a legal fiction as if the online marketplace itself had purchased the goods from the online seller and delivered them to the end customer.
This new procedure involves some changes with regards to billing documents (vis-à-vis you and the end customer) and the commissioning or shipping of the goods:
Tax payment
As soon as the case of the “Deemed Supplier” model exists, Kaufland Global Marketplace acts as the seller of the goods under VAT law, determines the VAT and pays it in your place. Your payouts will not include any VAT in these cases, as you are no longer responsible for VAT payment.
Billing documents
Kaufland Global Marketplace will provide you with a monthly credit note per warehouse country for sales made within the “Deemed Supplier” model via Kaufland Global Marketplace.
Customer invoice
In the case of the “Deemed Supplier” model, Kaufland Global Marketplace will send an invoice for the goods sold to the end customer. Of course, you remain the contractual partner of the customer and are responsible for product liability and warranty as you are today.
Import from a Non-EU country
If the goods are delivered from a non-EU country, you are responsible for the import and must import the goods using the Incoterm “Delivery Duty Paid” (DDP). Shipments that fall under the “Deemed Supplier” model can be exempted from import VAT through the new “Import-One-Stop-Shop” (IOSS) procedure.
Shipment of the order from a non-EU-country
It is necessary that you ship the items of an order of a warehouse together in one package.
Please note that these changes have no impact on transactions outside the “Deemed Supplier” model. Here, there are no changes with regard to the currently applicable requirements for the deduction of VAT.
We have summarized the main changes for you in a short video and in detail below:
What do you need to do?
As a marketplace, Kaufland Global Marketplace requires additional information from you as a basis for paying the VAT and for creating the accounting documents in the “Deemed Supplier” Model. To keep the effort on your side as low as possible, we have linked the requirements in the Seller Portal to your company headquarters:
HQ registered outside the EU:
- Request on the maintenance of a permanent establishment in the EU and, if the permanent establishment is available, provision of a permanent establishment certificate and income tax number
- Creation of all existing warehouses in your warehouse settings
- Allocation of all existing warehouses to your offers, if you have more than one warehouse
HQ registered within the EU:
- Creation of all existing non-EU warehouses in your warehouse settings
- If you have a non-EU warehouse and at the same time an EU warehouse: Allocation of all existing warehouses to your offers
Webinar (EN/CN)
Disclaimer
The information on this page and the accounting documents provided by Kaufland Global Marketplace do not constitute tax advice and do not replace it. Please contact your tax advisor if there are any changes resulting from the new EU tax regulation.