German VAT law updated: How can eBay sellers ensure tax compliance?

As Germany’s new VAT law will take effect on July 1, 2021, eBay issued an update reminder last week to ensure that platform sellers comply with German VAT requirements.

The reminder means that all sellers who need to register for VAT in Germany must provide a German VAT ID, including sellers trading through the German Small Business Relief Scheme (KleinInternehmerregelung).

eBay has partnered with German authorities to automatically check whether the details provided by sellers on the platform match the information the tax agency has on file for German VAT IDs.

Generally speaking, sellers need to register for a German VAT ID if they meet one of the following conditions:

The store seller is incorporated in Germany;

The seller sells goods from inventory stored in Germany;

Exceeding the German distance selling minimum threshold.

It should be noted that for foreign companies trading in Germany that are registered for VAT/GST in their own country , the VAT registration threshold is zero ; for companies that are already registered for EU VAT , the minimum distance sales VAT registration limit when selling goods to German consumers through an online platform is EUR 100,000 per year .

From July 1, 2021 , sellers can register for VAT under the distance selling rules or use the EU One Stop Shop (OSS) to file VAT returns to German customers .

Sellers should note that §22f UStG (German VAT Act) stipulates that a VAT ID is a mandatory requirement, so if the seller does not have a valid German VAT ID, they will be prohibited from conducting any sales business.

To sell normally on eBay Germany, sellers need to take the following measures:

Need to check whether the business needs to register for VAT;

Make sure your German VAT ID has been added to your eBay account : ebay.de/spr/vat

Make sure the seller information on your eBay account matches the information on file for your German VAT ID;

Update the seller's relevant account information in a timely manner to ensure that the information is correct and the match is complete.

Sellers with German VAT obligations need to upload their German VAT number, EU tax number and German tax copy on the eBay platform. Sellers without VAT obligations need to submit a German tax exemption statement according to the platform's requirements.

Sellers on the German eBay platform need to check relevant information as soon as possible to ensure that they can continue to trade on eBay after July 1, 2021.

eBay Platform

VAT

Germany