Intra-Community trade on Amazon.de

Factual situation

I set up an LLC to develop an intra-community trade business for which I will use the Amazon.de platform. The goods will be purchased from distributors in EU countries, then the products will be stored in a warehouse of the Amazon website for a fee and sold online on the Amazon.de platform. The products will be in the category of cosmetics, toys, electronics, food and drink. I will pay VAT in Germany (the goods will be sold only in Germany) and I applied for an optional VAT code in Romania, with the declaration 010.

Question:

I want to know if the VAT code for which I submitted the declaration is the one I need and what other tax information can you provide me for this type of trade?

Answer:

Regarding the question below, please be informed of the following:

The Fiscal Code has been amended from 1 July 2021 to adapt the VAT rules for electronic commerce to the new fiscal provisions set by the European authorities for all EU Member States. These are the changes brought by Emergency Ordinance no 59/2021, the synthesis of the main information being:

Background: Under current rules, the supply of goods to individuals is subject to VAT in the country of dispatch, up to a certain ceiling set by each Member State. If the value of the deliveries exceeds the ceiling set by the Member State in which the customer is located (the ceilings range from EUR 35,000 to EUR 100,000), the supplier is obliged to register for VAT purposes in that State and collect VAT in accordance with the country's requirements. of destination.

Starting with July 1, 2021, companies can use two special VAT regimes for online commerce. The two special VAT regimes are closely linked to the one-stop VAT counter of ANAF (One Stop Shop - OSS). These are the EU regime (Article 315 of the Fiscal Code) and the import regime (Article 315² of the Fiscal Code). In essence, these special optional regimes allow traders to declare and pay VAT through OSS, for the states in which they are not established, in the EU Member State in which they are identified (ie in the state in which they have established their economic activity - Romania, in our case). Although the use of OSS is optional, those who do not opt for this system will be at a disadvantage - they will file returns and make payments in each state where they owe VAT on e-commerce. It is also important that, once taxpayers have decided to use OSS, they will be required to use the one-stop shop for all transactions covered by the chosen VAT regime.

On the ANAF website (fiscal authorities) you can find registration guides in OSS, explanatory notes: One Stop Shop (anaf.ro). According to the European Committee, in order to register in the OSS for the EU regime, the Romanian VAT code is required, which is also used for the EU regime. For the import regime, the Tax Office will assign a VAT code in IMxxxyyyyyyz format.

According to the EC, the one-stop shop for VAT covers three special regimes - the non-EU regime, the EU regime and the import regime. In essence, these special optional schemes allow traders to declare and pay VAT in the Member States where they are not established, via an online application, in the Member State in which they are identified.

Those who will register in OSS will submit online VAT returns detailing the services provided and the goods delivered that can be declared in the regime used, together with the VAT due. The VAT return will be filed quarterly, in the case of the non-EU regime and the EU regime, and monthly, in the case of the import regime (in both cases it will be submitted by the end of the month following the tax period concerned). Please note that the VAT returns submitted through the one-stop shop will be additional, so they will not replace the VAT returns that must be submitted under the Romanian Fiscal Code.

Traders will make a single payment for the VAT due (in euros, to an account indicated by ANAF), to the state of identification (the amount must cover the VAT due to all countries where services have been provided or they sold goods). Subsequently, Romanian fiscal authorities will redirect the amounts due to other states. Payment is made either with the submission of the special VAT return at the one-stop shop, or after the submission of the form (if it is submitted earlier), until the submission deadline. Our fiscal authorities will determine exactly how to pay VAT and where.

o From July 2021, traders who facilitate the delivery of goods or services through online markets, platforms or portals are required to keep special records on VAT. But only if the delivery or service is made to non-taxable persons.

o Non-commercial transport, under 45 euros, between natural persons remains exempt from VAT (we refer to goods that are the subject of references from one private person to another, without commercial character, with a value of less than 45 euros per transport, benefit and from 1 July exemption from customs duties and import VAT).

Thus, from 1 July 2021, all distance sales of goods will be subject to VAT in the Member State where the individual is established. Current thresholds will be canceled; the MOSS scheme will be extended to OSS - a scheme that will apply to the supply of goods and services as well as the delivery of goods "facilitated" through electronic interfaces (IE). The current MOSS scheme will be extended to all supplies of goods and services Member States in which the supplier is not established. Thus, the supplier will still have to collect VAT from the Member State of arrival, but will no longer be required to register for VAT purposes in that Member State. He will be able to report the return of the relevant VAT through OSS VAT in a single Member State.

The OSS scheme will only be used for VAT reporting on deliveries. Therefore, companies will not be able to recover VAT on purchases through this scheme. Recoverable VAT balances will be able to be claimed, as before, through the reimbursement procedures established at EU level by the 8th Directive or the 13th Directive.

Please note that even companies that choose to register for OSS will need to consider and apply certain local provisions in force in the Member State of destination, such as tax rates, billing obligations, etc.

Consequently, the answer is yes if you use the OSS application, if you do not have to register as a VAT payer in Germany.

See answer in romanian here