How to buy within the European Union with EU VAT
Hi,
I've been reading the forum, the topics are pretty similar, but they’re about dealing with a problem once it comes up, not preventing it.
So how do you buy through Ebay without VAT being added if you have VAT-EU?
I set up a second account - for my business, but I still couldn't find a way to order some item, e.g. from Germany, where that VAT wouldn't be added.
10 comments
best-brake
OP2 years agoI found it. As I suspected, the information you provided applies only to "eBay warehouses". It is a call-off stock model introduced by the "Quick Fixes package" under an EU directive and effective from July 1, 2020. In this case, the company registered on eBay "sells" the goods to eBay, and eBay is the seller of the goods to the customer.
guangxi_hone
·2 years agoExactly so. It is a smartly thought-out thing because the seller might not always be able to collect the tax, and remitting it to the tax office is an additional system complication. In this way it is, so to speak, enforced, but it ensures maximum revenue for the government coffers.
This does not mean, however, that there is no loophole to get around it. It can be bypassed legally, but it only makes economic sense for larger and recurring purchases, or, put differently, as private import from zones with lower taxation, e.g. 6% vs 23%
best-brake
OP2 years agoAnd what seems even more important to me is that you don’t have to register and pay taxes in intermediary countries.
But that only applies to a small percentage of products sold on eBay, and we are moving away from the topic at hand, because it concerns a purchase from a seller that is not eBay, but shop X - with a registered VAT-EU.
guangxi_hone
·2 years ago"...we're moving away from the topic at hand..."
I don't think we're moving away because:
"...how do you buy through Ebay without VAT being added when you have VAT-EU? "
As for shops, that's a different story and belongs on one of the economics forums.
Nevertheless, minimizing taxation when buying in tax-free countries is absolutely possible here as well
best-brake
OP2 years ago"... THROUGH Ebay...", not FROM 😉
I don’t understand what’s causing this misdirection for Ebay users. I’ve read many threads on this forum. And in each one, no matter who the person bought from, the explanation was presented:
"You can’t avoid paying VAT when buying on eBay. If VAT is charged twice, eBay will refund the one it collected after proof of payment at the border is provided."
Another matter:
The only way to avoid VAT is to buy in a VAT-free country."
In every country that is a member of the European Union, you can buy with 0% VAT.
Besides:
"If it comes to stores, that’s a whole different story, suitable for one of the economics forums. "
Well, sorry, but that’s nonsense, or rather dressing up a very simple question, which directly concerns Ebay, as something complicated.
"Though minimizing taxation by buying in VAT-free countries is absolutely possible here too"
The misdirection continues.
Meanwhile, a typical response from a seller who sells through Ebay:
"We can make a new invoice but we must declare VAT because you buy it over Ebay"
Before I check it myself - is Ebay standing in the way of sellers issuing invoices with zero VAT, or reverse charge, despite EU VAT regulations?
best-brake
OP2 years agoWell, I don’t know, something feels very off to me here. Do you have any basis confirming such information? In the EU, there is a uniform VAT taxation system. In Poland, the VAT Act clearly states that in such a situation the obligation to settle VAT with the tax office rests with the seller - the one listed on the invoice. Maybe you’re confusing it with the situation when you buy from eBay “warehouses” (if such things exist, as is the case with e.g. Allegro or Amazon). There, if I remember correctly, the seller is the portal, and that is also what’s on the invoice.
Are you able to elaborate on the topic?
best-brake
OP2 years agoThanks for the reply. You answered my question directly and straight to the point, which I really appreciate. However, that brings up another, very important question.
Why would Ebay refund me the VAT? The seller of the item I bought is the advertiser, not the Ebay portal. The advertiser is also listed on the invoice, not Ebay.
guangxi_hone
·2 years agoBecause it’s eBay, not the seller, that charges the tax and remits it to the tax office based on the shipping address.
The seller has nothing to do with or any influence over the tax that is calculated and charged.
best-brake
OP2 years agoOf course, the point is that I shouldn't pay VAT twice, but only once in Poland.
guangxi_hone
·2 years agoYou can’t avoid paying VAT when buying on eBay. If VAT is charged twice, eBay will refund the one it collected after proof of payment at the border is provided.
The only way to avoid VAT is to buy in a VAT-free country.