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VAT Nightmare coming ? - 1 July 2021 a single EU-wide distance selling VAT registration threshold of EUR 10,000 will apply


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HOLA441

 

 Certainly a lot of small ebay sellers will give up selling into the Eu or risk breaching the 10k euro limit imo....thats if they even can 

https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650

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Effective 1 July 2021, a single EU-wide distance selling VAT registration threshold of EUR 10,000 will apply and replace the country specific intra-EU distance selling thresholds.

This means that if you make sales to non-VAT registered buyers in any EU countries, and the combined total of those sales exceeds EUR 10,000 (£8,818), you will need to collect VAT in all EU countries based on the delivery address.

To do this you will either have to register for VAT in each of the EU countries where you make sales, or use the EU VAT One Stop Shop. https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650

 

Edited by Saving For a Space Ship
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HOLA444
5 minutes ago, btl_hater said:

Only deranged retired or close to retiring Boomers and the elderly still support Brexit now.

Well I hope there will be enough to support them in their old age, that the NHS will value them as an equal against others, that knee and hip operations, and other age related aliments are timely and affordable for all...... if in the future long-term care is required that there will be enough people who would want to work in the care service, being paid a living wage enough to support all the debt taken on to purchase a home here........;)

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HOLA445
2 hours ago, Saving For a Space Ship said:

 

 Certainly a lot of small ebay sellers will give up selling into the Eu or risk breaching the 10k euro limit imo....thats if they even can 

https://www.ebay.com/help/selling/selling/vat-obligations-eu?id=4650

 

No one is going to sign up to pay eu vat as well as English vat. 

So good luck with that. 

EU tax collectors will find it a real hard struggle inside the English courts. They're famously soft on tax (non) payers. 

Send the bailiffs round to collect EU tax? Really? Do you know any bailiffs?

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2 minutes ago, sexton said:

One has to pay before delivery. Plus a handling charge. £7 in Sweden.

So that pushes up prices to EU citizens, and sellers include it in delivery charges?

If all the world changes over to paying tax at end user rather than at seller's location, the big corporations that have been avoiding tax will have to pay. That may be no bad thing. 

 

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HOLA449
2 hours ago, 24gray24 said:

No one is going to sign up to pay eu vat as well as English vat. 

So good luck with that. 

EU tax collectors will find it a real hard struggle inside the English courts. They're famously soft on tax (non) payers. 

Send the bailiffs round to collect EU tax? Really? Do you know any bailiffs?

Ebay and Amazon Marketplace will fully co-operate with tax authorities due to operating in multiple jurisdictions. So might find a lot easier for them than think.

Besides there's a boatload of Cross-border regs I'm sure you are currently unaware of that involves paperwork sharing and collection of stamp duties going through works - Spanish taxes on equities, etc... that have to be sorted and consequently have required many platforms to invest a fair bit in settlement.

EU are gearing up to protect small farmers and small businesses - we are a small nation 3rd country so we are prime for a kicking on enforcement.

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HOLA4410
4 hours ago, Staffsknot said:

Ebay and Amazon Marketplace will fully co-operate with tax authorities due to operating in multiple jurisdictions. So might find a lot easier for them than think.

Besides there's a boatload of Cross-border regs I'm sure you are currently unaware of that involves paperwork sharing and collection of stamp duties going through works - Spanish taxes on equities, etc... that have to be sorted and consequently have required many platforms to invest a fair bit in settlement.

EU are gearing up to protect small farmers and small businesses - we are a small nation 3rd country so we are prime for a kicking on enforcement.

Some of those big corporations have paid famously little tax for years. 

It sounds like it will affect them. 

They may even be the prime target?

 

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HOLA4411
23 minutes ago, 24gray24 said:

Some of those big corporations have paid famously little tax for years. 

It sounds like it will affect them. 

They may even be the prime target?

 

It won't make any difference to them - VAT already has to be charged over a threshold, which they will be everywhere. It just makes things a pain in the backside for smaller companies who might make a few sales across Europe. Now they need to set up an office (or virtual office) in an EU company to take advantage of the one stop shop, or else register in every single country they think they might do business in. Make no mistake, this hurts small companies far more than big ones.

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HOLA4412
4 minutes ago, mattyboy1973 said:

It won't make any difference to them - VAT already has to be charged over a threshold, which they will be everywhere. It just makes things a pain in the backside for smaller companies who might make a few sales across Europe. Now they need to set up an office (or virtual office) in an EU company to take advantage of the one stop shop, or else register in every single country they think they might do business in. Make no mistake, this hurts small companies far more than big ones.

 It's a switch to paying vat in consumers country rather than sellers country?

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6 minutes ago, mattyboy1973 said:

no

If I buy in Germany german vat is charged. 

If I sell to Germany,  this new charge seems to reverse the old rule that uk vat was charged, not german vat. 

And make ebay responsible for collecting it too by the look of it. 

It looks like a switcharound from country of seller to country of buyer getting the VAT. 

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HOLA4415

Not my understanding. VAT has been charged at the rate of the buyer's country for some time. This is about how you have to register to disburse that VAT back to that country. When we were in the EU, we could do it via normal VAT returns, now we need to register in each country individually, or setup an office in an EU country to take advantage of the existing one stop shop system. This news is just about the lowering of the threshold, not any fundamental change to the system.

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HOLA4416
1 hour ago, 24gray24 said:

Some of those big corporations have paid famously little tax for years. 

It sounds like it will affect them. 

They may even be the prime target?

 

Amazon & Ebay already charge VAT. They never evaded VAT as its on the seller

 

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HOLA4417
3 minutes ago, mattyboy1973 said:

Not my understanding. VAT has been charged at the rate of the buyer's country for some time. This is about how you have to register to disburse that VAT back to that country. When we were in the EU, we could do it via normal VAT returns, now we need to register in each country individually, or setup an office in an EU country to take advantage of the existing one stop shop system. This news is just about the lowering of the threshold, not any fundamental change to the system.

Who gets the vat on a car I buy from Germany?   It used to be Germany.  

And when I sell to Germany,  I pay uk vat to the uk government. 

If they were switching it to buyers country getting the VAT,  then that would indeed be radical. 

 

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HOLA4418
3 minutes ago, Staffsknot said:

Amazon & Ebay already charge VAT. They never evaded VAT as its on the 

 

But this change seems to be putting some liability on eBay to make sure it's paid according to the blurb. They wouldn't be happy about that. 

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HOLA4419
7 minutes ago, 24gray24 said:

And when I sell to Germany,  I pay uk vat to the uk government. 

No. Your buyer pays German levels of VAT to you, which you (used to) give to the UK government, who then gives it to Germany. Now you have to cut the UK out of that transaction and deal with the German tax authorities directly.

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HOLA4420
7 minutes ago, mattyboy1973 said:

No. Your buyer pays German levels of VAT to you, which you (used to) give to the UK government, who then gives it to Germany. Now you have to cut the UK out of that transaction and deal with the German tax authorities directly.

So when I buy a German car in germany, it's the German car company paying uk vat to the uk government? 

Doesn't sound right. 

Could it be tariffs or customs duties we're talking about rather than vat?

That would make more sense to me. 

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HOLA4422
8 minutes ago, 24gray24 said:

So when I buy a German car in germany, it's the German car company paying uk vat to the uk government? 

Doesn't sound right. 

Could it be tariffs or customs duties we're talking about rather than vat?

That would make more sense to me. 

If you are in Germany, you pay VAT in Germany, to Germany. If you buy a German car in the UK, you are almost certainly paying a UK based company UK VAT.

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HOLA4423
3 minutes ago, 24gray24 said:

So when I buy a German car in germany, it's the German car company paying uk vat to the uk government? 

Doesn't sound right. 

Could it be tariffs or customs duties we're talking about rather than vat?

That would make more sense to me. 

You would either get it VAT free as an export to the UK then pay VAT in the UK. Or use it in Germany having paid VAT then bring it to the UK and pay UK VAT on the residual value. Its more convoluted than that with years/months of ownership etc. Another eg is yachts where you could potentially pay VAT 3 times. New yacht in UK VAT paid. Go to EU and if more than 1 year Pay EU VAT then stay more than 3 years, bring it back to UK  and pay VAT again. Its what we voted for.

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HOLA4424
2 hours ago, 24gray24 said:

Some of those big corporations have paid famously little tax for years. 

It sounds like it will affect them. 

They may even be the prime target?

 

They are happy to oblige the tax authorities for your payment of tax but are an offshore company for their tax liabilities. They make sure that their apparent profits in the UK/EU are low or even negative. 

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HOLA4425
9 minutes ago, mattyboy1973 said:

If you are in Germany, you pay VAT in Germany, to Germany. If you buy a German car in the UK, you are almost certainly paying a UK based company UK VAT.

Right, so if I sell something to a German,  I pay uk vat to the uk government. 

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