eBay will take action against violations of German VAT regulations, and serious cases will not only result in account suspension!

On February 3, eBay China's official website released a " Notice on Sellers Using False Information to Register German VAT Numbers and Certificates ", stating that the German tax authorities recently discovered that a large number of overseas sellers used false information and materials (such as overseas warehouse contracts, etc.) to register German VAT identification numbers and certificates. The German tax authorities have launched an investigation into this illegal behavior.

eBay reminds sellers that violating German VAT regulations is a serious crime and may result in criminal liability . Upon receiving notification from the tax office, eBay will take restrictive measures against accounts and their associated accounts that use false information to register for German VAT, including but not limited to account freezing.

eBay also recommends that sellers conduct self-reviews to ensure that they meet the requirements of eBay's upcoming managed payment service, including that the company information of sellers using the managed payment service must be consistent with the company information of their eBay account.

For sellers in the European market, value-added tax has always been a big problem, and many sellers are taking chances. However, times have changed. The economies of European countries have suffered a major blow under the epidemic, and all walks of life are in a state of disrepair. Only e-commerce has achieved amazing breakthroughs and growth as a dark horse in 2020. Therefore, the e-commerce industry has recently become the "key focus" of various European countries. Stores that have survived by chance in the past will also be subject to key scrutiny in the future. Therefore, sellers must no longer take chances, and must still take compliance as the foundation of their existence.

In fact, registering for a German VAT number is not just about paying money, it is also beneficial to the seller itself, such as:

When the same account is used to pay import tax and sales tax, the import VAT portion can be declared refunded, and VAT is only paid on the VAT portion, which can appropriately reduce costs;

Using your own tax number for import customs clearance is also conducive to smooth import customs clearance. Good cargo records can effectively enhance your reputation with the customs.

In addition, registering for a German VAT tax number is in compliance with the regulations of the European Commission, which can establish entry barriers and use overseas warehouses to increase exposure and promote sales.

Currently, most of the VAT rates in Germany are the standard rate of 19%, and there is also a low rate of 7%, which only applies to books, newspapers, food, agricultural products and artworks, as well as services for specific activities (cultural activities).

The information required to register for German VAT includes:

1. Business license and German translation;

2. Articles of Association and German translation;

3. Scanned copies of the legal person’s passport and ID card;

4. Letter of authorization from the tax accountant;

5. Signature form for tax number application;

6. Basic information and basic sales situation of the store;

7. If there is an overseas warehouse in Germany, a warehousing contract must be provided.

E-commerce platform

VAT

eBay Platform