Germany marketplaces liable for Seller VAT fraud 2019
- EU VAT
- 3 June 2018 | Richard Asquith
Germany is to make online marketplaces liable for any unpaid VAT by merchants on their platforms from 1 January 2019. The European Union estimates Germany's VAT GAP - the difference between VAT collections and forecasts - is €22 billion per annum
The new law will apply to German resident and non-resident e-retailers. To moderate any liabilities, the marketplaces may:
- 1. Keep a record of the Sellers’ up-to-date German VAT registration certificate; or
- 2. Have digital confirmation from the German federal tax authorities of the Sellers’accurate VAT compliance.
The largest online platforms in Germany include: Amazon; Otto; Zalando; Noteboosbilliger; Bonprix; MediaMarkt; Cyberport; Conrad; Tchibo; ad Alternate.
The draft law was agreed to by Federal finance ministers on 25 May 2018. It follows similar, joint and several UK VAT liability obligations on marketplaces introduced by the UK in 2018
On 1 August 2018, Germany’s federal cabinet (Bundesregierung) approved a draft bill to oblige online marketplaces to capture key VAT data and compliance on third-party sellers on...
The European Commission (EC) has warned Germany that it must reduce its unreasonable restrictions on providing VAT refunds to non-resident businesses. In a reasoned opinion,...
Germany yesterday published the draft Annual Tax Act 2018, which includes making online marketplaces potentially liable for merchants’ unpaid VAT liabilities. This was agreed by federal...