Amazon require all the Germany sellers register VAT before 1st March 2019. We are the pet products factory, our customers told us the term of the Germany VAT is coming, does the Germany sellers have registered and submitted the VAT number? If not,then you have to think about the continuous operation on Amazon.
Some sellers are selling for some time, if you do not want to make up the high cost. You can consider to register new account and VAT to continue the items. Germany market is the biggest market in EU, it is necessary to register the VAT number.
Here are some questions we need to know about before the Germany VAT registration:
Q:How about the Germany tax law requirement for the sellers VAT registration.
A: It is suitable for the import,business trade and service in Germany. VAT is suitable for the sellers using overseas warehouse. According to the EU tax law, no matter in which country you sell the items. If the item stores and ship from local country, then the seller needs to register the VAT number.
Q:How long does it take for the Geramny VAT registation?
A:According to the tax law, company need to fill the tax of previous month before the 10th every month. It needs summary at the end of year, that is 12+1 times filling tax.
Q:When do I need to register VAT?
A:The seller need to register from the 1st order.Sellers need to pay attention that, it has no relations with the site of the cosumers ordering site. For instance, 1 customers bought 1 item on amazon.fr, but it is shipped from Germany warehouse, then this item belongs to the Germany VAT registeration.
Q:What about the function of EORI, how many does it need to register?
A: EORI is the unique identification code and used in the customs clearance. It is generic in EU, no need to repeat the application.
Q:What about the tax rate?
A:In Germany, books,newspaper,food and agricultural products are subject to 7% rate. But other major products and service are subject to 19% rate. Sellers need to separate the low tax rate in UK, UK sellers can applicate low rate if the year sales amount is under 150 thousand GBP.
Q: I do not have the account, can I first register Germany VAT and use?
A: Of course. Sellers register Germany VAT must have Ebay and Amazon account. If you have both 2 accounts, then you need to make indication of the use.
Q:I have the UK VAT, do I need to apply for the VAT of Germany or other EU countries?
A:If the item you ship to DE or other EU countries, it is delivered from UK warehouse to DE or other EU countries,then according to the EU Distance Selling Regulation, sellers can use UK VAT,the items shipped from UK FBA.
If it is under the Distance Selling Regulation law, then sellers do not need to apply for other EU countries VAT.
But you need to register the VAT if the 12 months sales over 100 thousand Euros in Germany and 35 thousand Euros in France and Italy.
Hope it is clear for the Geramny sellers, if you want to do longterm business in Germany, it is necessary to register the VAT number asap.