19 Feb
VAT Issues for Amazon Sellers to Germany
Recently a new law was passed by Germany which makes marketplaces liable for any kind of VAT fraud that is happening on their platforms. This has prompted platforms like Amazon and eBay to require their sellers to provide them with a form F22, in order to avoid the liability. This form allows the marketplaces to be excluded from the liability but also lets the relevant authorities to access all sales data from the past.
The official deadline to provide the F22 form for Non-EU Companies is the 01st of March 2019 and for EU companies is the 01st of October 2019.
The German authorities have made clear that any prior evasions will also be picked up and all evasions will be investigated and dealt with accordingly.
The Tax Certificate
All EU and Non-EU companies that are registered for VAT in Germany (Companies that do not have to be registered for VAT in Germany do require this Certificate) have to get a Tax Certificate, you need to perform the following steps to apply for the certificate to avoid issues and getting your account suspended from selling in or to Germany.
1. Make sure you have a VAT certificate with the correct validity.
Make sure you are registered for VAT and have submitted all returns properly on time if not, make sure this is done and all prior returns are submitted.
2. Complete form USt 1 TJ form
You will need to complete the form with all the required information, ask your German Accountant or us to help you fill this out. You can download the form here.
USt 1 TJ form
3. Send it to the correct tax authority in Germany
Every country has its own assigned tax office inside Germany. Make sure to send the form to the correct authority. Find your local tax office.
4. Receive the F22 confirmation from each marketplace
If all goes well and the review is positive you will receive an F22 confirmation, the confirmation is valid for 6 months.
F22 Confirmation
5. Upload the confirmation to your marketplace account
Your marketplaces such as Amazon, eBay will show you where to upload this confirmation.
Important things to Note:
When do I need to register for VAT in Germany?
- You will need to register for VAT in Germany when you go above the selling threshold of € 100,000 (Net Sales) or the day you start storing goods in a German warehouse, whichever happens first.
I should have registered for VAT in Germany, what now?
- You need to register now for both a German Tax ID and VAT ID from the time you got accountable, not registering can result in criminal prosecution.
Will past VAT be payable?
- You will have to pay for all prior periods for which you are liable, interest and penalties will apply.
How long till I get my F22 confirmation
- There is a huge backlog for this document and due to the huge demand, it can take several weeks. The confirmation is only valid for 6 months.
Clear House Accountants are specialist Accountants in London who work with thousands of Amazon, eBay and other marketplace sellers, providing them with specialist Accounting and Tax solutions across the UK.
Author Bio
Thao is a Senior Accounting Manager at Clear House Accountants. Her experience in the industry has led her to her current position in which she is responsible for a team of accountants, tax planners and bookkeepers.
Thao works with her team to help clients from a variety of industries, grow, save money and plan for the future. Thao holds a Bachelor and Masters degree in Accounting and Finance and is currently working towards her ACCA, she is also a Xero and Quickbooks Certified Advisor.
Thao’s expertise lies in high-level tax planning, management accounting and strategic business planning based on financial performance and business analytics. Her experience, expertise and knowledge make her an exceptional contributor at Clear House.