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Navigating E-Commerce Taxes in Germany
Navigating E-Commerce Taxes in Germany

Accountable supports local e-commerce. This is a Guide for Self-Employed Individuals Using Accountable for e-commerce.

Simon avatar
Written by Simon
Updated over 10 months ago

Understanding E-Commerce

E-commerce refers to the buying and selling of goods and services over the internet. Different forms of selling in this digital landscape include business-to-consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), and consumer-to-business (C2B) transactions.

VAT will apply differently depending on the type of client (B2B or B2C) and the location of clients (locally, in the EU, outside of the EU), as well as the total income amounts that you generate.

Usually, E-commerce platforms facilitate these transactions, offering a space for sellers to showcase their products and connect with potential buyers.

Example E-Commerce Platforms

  1. Amazon FDA: A global marketplace catering to various product categories.

  2. Etsy: Focused on handmade, vintage, and unique items.

  3. Bol.com: Dutch online marketplace, dedicated to goods in the Netherlands and Belgium

  4. Shopify: An e-commerce platform allowing users to create their online stores.

Taxes when selling via e-commerce

How much VAT should apply?

As a self-employed in Belgium, you may need to charge VAT to your clients based on specific situations:

  1. Local Sales: If you sell only locally, you apply 21% VAT and are typically required to collect and remit Belgian VAT yourself.

  2. Sales Within the EU (under €10,000/year): You can either charge and remit local VAT for each sale, or for simplification, apply 21% Belgian VAT, then declare and pay the VAT to the FOD in Belgium.

  3. Sales Within the EU (above €10,000/year): When reaching the amount of 10.000€ of sales per year, you are required to charge VAT locally (e.g. 20% in France, 19% in Germany, etc). You can declare and pay VAT in each country, or through the One-Stop-Shop platform.

n.b. If you are Kleinunternehmer: As long as you sell under €10,000 annually within the EU, you don’t charge VAT. Make sure to setup your e-commerce platform correctly. We advise not to request a VAT-ID as a Kleinunternehmer, in which case you would register in your e-commerce platform as a private seller.

As soon as you reach the threshold of 10.000€ of sales within the EU, you must register as subject to VAT, collect VAT locally and declare/pay via the OSS platform (read below).

Handling VAT in the EU: The Role of OSS/IOSS

OSS (One-Stop Shop)

The OSS is a simplification measure that allows businesses to declare and pay VAT on their B2C (business-to-consumer) sales of goods and certain services within the EU through a single online portal. This is particularly beneficial for those selling across multiple EU member states.

If your e-commerce business involves selling within the EU and your annual sales exceed €10,000, you can declare VAT in each country, or to ease the admin burden you may choose to utilize the OSS.

IOSS (Import One-Stop Shop)

For businesses involved in the importation of goods into the EU with a value not exceeding €150 per sale, the IOSS system comes into play. This is particularly relevant for sellers engaged in cross-border e-commerce transactions (aka dropshipping).

When using the IOSS, VAT on imported goods can be declared and paid through a single EU member state, simplifying the process for sellers and ensuring a smoother experience for customers.

Integration with Accountable

Accountable can cover your e-commerce business if you are selling within the EU, with annual sales under €10,000, and you collect VAT yourself. However, if you choose to leverage the OSS or IOSS for your EU sales, it's crucial to ensure seamless integration with Accountable to streamline your tax management.

How e-commerce platforms handle VAT

  • If you sell goods on Etsy or Shopify, the platform usually remits VAT in your name and excludes the value from payouts. This means, you don’t have to declare and pay VAT to the tax office.

  • Amazon usually suggests their dedicated partners to manage your accounting and taxes.

  • Other platforms (Eversport, Bol.com for example) will let you decide how much VAT is collected, and you are in charge of declaring VAT to the FOD.

Accountable Can cover your E-Commerce Business if:

  • You sell only locally and collect VAT yourself.

  • You sell within the EU, with annual sales under €10,000, and you collect VAT independently.

  • You are a Kleinunternehmer and sell under €10,000 per year outside of your country.

We recommend relying on a Tax-advisor if:

  • You are subject to VAT and sell via platforms like Etsy, where VAT is remitted for you.

  • You need to charge VAT rates.

  • You are involved in dropshipping or IOSS.

  • You declare VAT abroad or under the OSS regime.

  • You sell outside your country for significant amounts.

  • You cannot trace the location of each transaction.

Scan expenses

Record revenue

Prepare and file VAT

Prepare and file income tax

Local e-commerce

✅

✅

✅

✅

Kleinunternehmer with e-commerce sales in the EU below 10.000€ / year

✅

✅

✅

✅

EU sales under 10.000€/year, local VAT collected and declared by you

✅

✅

✅

✅

Charging foreign VAT rate

✅

❌

❌

❌

Selling through Etsy or equivalent, where VAT is remitted for you

✅

❌

❌

❌

Dropshipping / IOSS regime

✅

❌

❌

❌

OSS or ecommerce income in the EU above 10.000€/year

✅

❌

❌

❌

If you are not sure, you can always reach out to our Tax Coaches who will guide you into how to proceed.

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