selling via amazon Germany- VAT and fulfilment

Question posted by Mathilde Murphy, on behalf of Enterprise Europe Network - United Kingdom in AL7

Hi
a client of mine is thinking of selling with amazon Germany (fulfilment service) and is enquiring about what VAT (UK or German) he needs to charge on his goods. I know the general rules about VAT in the EU but I get anxious when amazon or online distance selling platforms are involved! does anybody have experience with this matter? the company is registered in the UK. thank you for your help!

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HI, from my previous experiences selling Direct on the internet to the EU, your client needs to get the VAT number from their client in Germany if VAT is NOT going to be charged.

Although as you client will be selling through Amazon the likelyhood is this will be B2C rather than B2B and therefore your clients best option is to charge VAT (on the assumption these are mostly B2C clients). I am not aware of Amazon having a process option for then altering the transaction to a B2B sales (excluding VAT if the German buyer can provide a VAT number).

I have sold direct online to Germany and the rest of the globe so if you wish to ask any further questions, please feel free to message me. You may also wish to contact your Local UKTI team and speak to an International Trade Advisor like myself in your local area for some one to one advice. We are a governement agency. www.ukti.gov.uk The details of you local office are UKTI East of England Trade Contacts
UKTI East

Tel: 0845 641 9955

Email: info@uktieast.org.uk

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Richard England, on behalf of Consulting for Export in WD3.

Mathilde,
The key question is whether these goods are being sold to a business customer or to the consumer. If these goods are being sold online from a UK base to the consumer then it is my understanding that UK VAT must be applied, irrespective of whether the goods are being fulfilled from a warehouse in Germany.

In the case of selling to a registered business you will need to obtain their VAT number and ensure that this is used on all invoicing. However, like the previous respondent says, whether Amazon has a process in place to differentiate between the two I do not know.

There is also one more consideration to take into account. It has always been my understanding that, if your online sales are likely to exceed Euro 100,000 then you will be expected to register your company for VAT purposes in Germany. Different EU states have different thresholds but I think I am correct is saying that Germany has a threshold of Euro 100,000.

Regards,

Richard England

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thank you both for your replies which confirm what I thought.
best wishes
Mathilde

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