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Can I use my numbers so we follow:
1, Your answer is No.
2. You answer is yes. (I assume in calculating the turnover I only use the Distance selling turnover.)
3. You have not answered the FBA question. Sub DS limit sales of goods shipped to Germany FBA warehouse prior to sale. The Germans have assessed me for the VAT I have paid to the UK saying because they were in Germany when sold I have to pay German VAT.
4. You have not answered clearly. Viz once registered under distance selling do my standard exports (1 above) to German then have to go in my German vat return or just items sold under distance selling.
(Also your link to your answer did not work. I got I have no questions. Took a while to get there via help pages. then tried calling just answers suing the phone link to show them this but the phone link is a dead end).
I am sorry I really want to be clear as to your answer is it:
3. You disagree with the German VAT authorities position and their assertion than goods stored in Germany FBA warehouses when ordered on the German website are liable to German not UK VAT?
This is the wording of the directive:
That means that they are treated as supplied in the UK and liable to UK VAT unless you are also registered for VAT in the EU country to which they are sent, in which case they can be zero-rated assuming all the usual conditions are met. You may also have to account for VAT in that country, and so have to be registered there.
And the last sentence is what puzzles me.
4. We only include distance selling orders in the German VAT return not other goods sold to Germany.
You have it pretty well. If you exceed the German 'distance selling threshold' then you will have to register there also for the German equivalent of VAT. In Germany the rate is 100K Euros per annum. You can find a full list here:
The advice was I think wrong.
I have checked further.
The German Vat authorities are right.
I am at a slight lloss as to what you are getting at. I have explained the UK VAT position and also the German where the distance selling threshold is 100K Euros in any one year.
However, if you recall I did say:
'That means that they are treated as supplied in the UK and liable to UK VAT unless you are also registered for VAT in the EU country to which they are sent, in which case they can be zero-rated assuming all the usual conditions are met. You may also have to account for VAT in that country, and so have to be registered there.'
Consignment sales are different.
I am writing to UK vat at the moment and will see if they disagree will keep you informed. I know you will want to know.
I am doing it as a vat claim adjustment rather than advice request.
I saw other advice on internet which was quite firm on the German's view. Sadly Germans are rarely wrong when it comes to rules!
What get's me is the complexity of VAT in the "free movement of goods EU". Consignment , Distance Selling and ordinary sales and 40 countries and languages. NUTS.
The general feeling when VAT was introduced was that it was far more comples and more difficult to use than the purchase tax which preceeded it. It was mandatory within the Common Market as it was then. Changes in methods of trading and constant attempts to evade the tax resulted in endless changes. That doesn't take account of the presonnel who were largely ignorant of the tax and ill trained.
You may not be aware that when VAT was first set up it was staffed by a trawl through the Civil Service along the lines 'Anyone want to join a new tax office in Southend?' I know because in my section we encouraged a complete idiot to apply merely to get rid of the fool in the quickest way possible. His applicaion was greeted with open arms. I bought the house of another who had been enticed down to Essex.