Changes to VAT import regulations for the EU in 2021
There will be changes to the VAT treatment of imports into the EU, as well as certain shipments within the EU. Please make sure that you’re informed of your VAT obligations.
When: 1 July 2021
Where: ebay.ie, ebay.de, ebay.pl, ebay.nl, ebay.ch, ebay.at, ebay.benl.be, ebay.befr.be
Changes to EU VAT for cross-border e-commerce
From 1 July 2021, the EU will introduce significant changes to how Value Added Tax (VAT) is collected on:
- imports into the EU
- supplies within the EU by non-EU sellers
- and cross-border supplies by EU sellers.
Changes to eBay/eBay’s responsibilities
eBay will collect and remit VAT based on the seller’s location, consignment value, and the item location for sales into the EU:
| Seller location | Consignment value | Item location | eBay will collect & remit VAT based on delivery country in the EU |
|---|---|---|---|
| Inside EU | Up to €150 | Outside EU | Yes |
| Inside EU | Above €150 | Outside EU | No |
| Outside EU | Up to €150 | Outside EU | Yes |
| Outside EU | Above €150 | Outside EU | No |
| Outside EU | Any value | Inside EU* | Yes |
| Inside EU* | Any value | Inside EU* | No |
What sellers have to do
eBay asks that all sellers provide a gross price and a separate VAT rate on their listings, so that eBay can determine the correct amount of VAT to collect from consumers based on their location.
Separate from eBay obligations, EU sellers with an annual turnover of more than €10,000 for their complete intra-EU cross-border supplies will have to charge the VAT of the EU country of delivery.
Cross-border trade sellers should assess the impact on their business and prepare for the changes.
Please check the updates to be informed with this topic.
Additional changes
The current VAT exemption for imports of goods in a small consignment of a value of up to €22 into the EU will be abolished.
The current distance selling thresholds for intra-EU cross-border supplies will be abolished.
Please contact your tax adviser for questions on your VAT obligations.
You can find more information on EU VAT for e-commerce here.
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Changes to VAT requirements for Germany
As per the new VAT law from 1 July 2021, all sellers who need to register for VAT in Germany will have to have a German VAT ID, and add the ID to their eBay account. This will replace the current paper certificate. Sellers who are liable for VAT registration in Germany and have not provided a valid German VAT ID will be blocked.
When: 1 July 2021
Where: ebay.co.uk, ebay.ca, ebay.de, ebay.pl, ebay.nl, ebay.ie, ebay.ch, ebay.at, ebay.benl.be, ebay.befr.be
Changes to VAT requirements for Germany
Due to a law change in Germany effective from 1 July 2021, there will be new requirements for marketplaces to ensure the Value Added Tax (VAT) compliance of their sellers.
This means all sellers who need to register for VAT in Germany will have to provide a German VAT ID. This will include sellers trading under the German Small Business Relief Program (Kleinunternehmerregelung).
eBay will run automated checks with the German authorities to make sure that the business seller details on eBay accounts match those that the tax authorities have on file for the German VAT ID.
Important points to consider:
Typically, a seller needs to register for German VAT if they meet one of these conditions:
- A seller established in Germany; or
- A seller selling goods that are warehoused in Germany; or
- A seller who has exceeded the distance sales threshold in Germany. After 1 July 2021, the seller can opt to register for VAT under the distance sales rules or use the EU One Stop Shop (OSS) service to declare VAT charged to German customers. See further information on the EU website.
Sellers who do not have a valid German VAT ID on file and are required to do so will be blocked from selling as the VAT ID will be mandatory due to §22f UStG (German VAT Act). Learn more here.
Next steps for sellers
- Check whether your business needs to register for German VAT. If so, register with the German tax authorities and apply for a VAT ID.
- Make sure that your German VAT ID is added to your eBay account. Check it in the Seller Hub.
- Make sure that the business seller details on your eBay account match those that the tax authorities have on file for your German VAT ID.
- If you are affected, you should update those details as soon as possible to make sure that you can continue trading on eBay after July 1 2021.
- For any further questions, please contact your tax advisor.