How do I ship to Germany MF without customer being charged VAT?
Hi,
We have recently become registered for VAT in Germany using Amazon VAT services. When we have an order through our own website going to Germany, I know that we are now supposed to charge German VAT. But how are we meant to ship this order so that the customer doesn’t get charged VAT again once it enters the country?
I’ve spoke to Amazon VAT services and Avalara who both say that they can’t advise. Do we need to also sign up for IOSS? What’s involved in that? I’m so confused as I thought that signing up for Amazon VAT services would sort all these issues out and they would advise what our obligations are. Turns out they can’t!
Other questions I have on being registered for VAT in Germany:
-
The sales to Germany that have come from Amazon and ebay that we are shipping MF - I take it that we continue to send these using Amazons and Ebays IOSS numbers?
-
Is it correct that we don’t need to declare our ebay and other marketplace sales to Germany on our German VAT forms (this is what Amazon have told me)?
-
We want to send stock to FBA in Germany, will there be any customs issues that I should be aware of?
-
Off topic - but we’d also like to send stock to France FBA, would we need to register for VAT in France too?
If anyone can point me in the right direction for this information, I’d be very grateful. I’m almost ready to pull the plug on this German VAT thing as it seems very daunting for a small seller.
Thanks
Amy
How do I ship to Germany MF without customer being charged VAT?
Hi,
We have recently become registered for VAT in Germany using Amazon VAT services. When we have an order through our own website going to Germany, I know that we are now supposed to charge German VAT. But how are we meant to ship this order so that the customer doesn’t get charged VAT again once it enters the country?
I’ve spoke to Amazon VAT services and Avalara who both say that they can’t advise. Do we need to also sign up for IOSS? What’s involved in that? I’m so confused as I thought that signing up for Amazon VAT services would sort all these issues out and they would advise what our obligations are. Turns out they can’t!
Other questions I have on being registered for VAT in Germany:
-
The sales to Germany that have come from Amazon and ebay that we are shipping MF - I take it that we continue to send these using Amazons and Ebays IOSS numbers?
-
Is it correct that we don’t need to declare our ebay and other marketplace sales to Germany on our German VAT forms (this is what Amazon have told me)?
-
We want to send stock to FBA in Germany, will there be any customs issues that I should be aware of?
-
Off topic - but we’d also like to send stock to France FBA, would we need to register for VAT in France too?
If anyone can point me in the right direction for this information, I’d be very grateful. I’m almost ready to pull the plug on this German VAT thing as it seems very daunting for a small seller.
Thanks
Amy
7 replies
Seller_7VbclcPFFRTnc
If you are talking about sales on your own website, you can either register yourself for ioss or send DDP
If selling on amazon, you must use amazons ioss number and send with a courier who can electronically upload the ioss details, along with customs forms, tarrif codes etc
This all depends though on if the buyers are personal or business and if they are under the ioss threshold, check with your accountant
As for your other questions
- Yes, you use amazon and eBay ioss numbers
- If you are sending them through ioss they have already had the vat accounted for but check with your accountant if they require nil returns
- You’ll struggle to get any stock into Germany - no one has reported successfully, easily and cheaply getting stock in - none that want to share their success anyway
- If you want to send to France fba You’ll need a French vat number too
Re pulling the plug on German vat, there is a minimum period of 2 years for registration
Seller_PUgTge8LPB8FY
This is a very big subject. I suggest you plough your way through the numerous forum threads on this issue, to familiarise yourself with the difficulties other sellers have had and the solutions they’ve found so far (if any).
Seller_ae51e0CJoHqCX
Love the question and can answer most of the points.
First of all you do not sign up to IOSS, that is already automatic when you are shipping from the UK to Europe.
Amazon take on the VAT burden for these orders which are clearly indicated when the order comes in.
The only reason you would want to register for VAT in Germany when starting out is purely for FBA and storing stock in the country you are supplying. I will go on and answer the numbered points.
yes but you have to make sure they qualify for IOSS and these are displayed when you go into the order. There are reasons whereby an order does not qualify and that is if a registered business buyer in Germany makes a purchase or it is valued at of 150 Euros, These orders fall outside the IOSS scope and you have to send them on a DDP basis.
If you have used IOSS then Amazpn or Ebay have taken care of this so yes you do not declare this on your VAT returns as the VAT has already been paid.
Yes you need to have fiscal representation, this is an intermediary that is based in Germany and you declare the goods that you are sending and they will prepare your invoice and you then declare this to customs. They will check your shipment and you can then use this invoice as part of your declarations when filing your monthly returns in Germany (I am a bit new to this and need to see it in action before I fully understand it)
You need to register for VAT wherever you decide to store your goods, my adice would be to hang fire on this one and do one destination at a time. It maybe more cost effective to send in to Germany and then use PAN-EU so Amazon will sort this out for you and control the goods depending on what VAT registrations you have.
I’m a small seller and registered in 5 European Countries and paid thousands for sending nil VAT returns every month.
Brexit broke the system but there maybe a solution on its way but this is not for the faint hearted.
I have spent years trying to find the answers thinking I was a minority that everyone knew what they were doing and thinking their must be a system that I am missing. I now realise that I was part of the silent majority.
