VAT on sales in the European Union as a micro-entrepreneur
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I don’t often write on forums to ask for help, but after a lot of research, I’m throwing this bottle into the sea because I’m completely lost on this subject…
I’m self-employed, but I’ve gone over the €10K sales threshold in the EU, so eBay has blocked my listings for buyers in the EU.
They’re asking me for a VAT number, which I’ve obtained, but no one says the same thing about how to apply it…
Let me give an example: I have an item for €10 in my shop, if a buyer in France buys it, they’ll pay €10.
If a buyer in the EU buys it, how much will they pay? €10 + their VAT, or will that VAT be taken out of my €10?
Also, who is supposed to handle this VAT? eBay, or do I have to file/pay every month?
eBay tells me it’s me, and my SIE tells me that eBay does it automatically…
Thanks for your help!
Have a good weekend
10 comments
retro-modelisme-rc
·1 year agoHello,
I am exactly in the same situation. I have reached the 10K threshold in the EU, but it seems impossible to charge VAT in the EU countries concerned ???? the only way is to add VAT (20% ) in the listings, and so French buyers must also bear this VAT.....
It would be good if Ebay looked into the problem (which should not be too complicated for them given that they already automatically charge VAT for certain extra-community sales), they would just not have to remit it, since it is up to us to do so via the OSS one-stop shop.
What about the 100K threshold announced above? because that does not seem to be the case.
best regards,
Ludovic
francexpressdeal
·1 year agoHello @chez_lubi
"By the way, who is responsible for handling this VAT? Ebay or do I need to file/pay every month?
Ebay tells me it’s up to me, and my SIE tells me that eBay does it automatically…"
It’s up to you to declare this VAT.
Link on ebay :
https://www.ebay.fr/help/selling/selling/vos-obligations-en-matire-de-tva-au-royaumeuni-et-au-sein-de-lunion-europenne?id=4650&st=3&pos=1&query=Vos%20obligations%20en%20mati%C3%A8re%20de%20TVA%20au%20Royaume-Uni%20et%20au%20sein%20de%20l%27Union%20europ%C3%A9enne&intent=tva%20intracommunautaire&lucenceai=lucenceai&docId=HELP1369
Link on impots.gouv.fr :
https://www.impots.gouv.fr/professionnel/questions/je-suis-micro-entrepreneur-ou-la-tete-dune-micro-entreprise-ai-je-des
chez_lubi
OP1 year agoThank you for your messages.
So it’s very clear, my SIE told me nonsense since it’s the seller who has to make their declarations for the EU and not eBay, which does it automatically…
However, regarding the point about the price to display on eBay, what is the rule?
If we put a price of €10 on an item and a buyer in the EU buys it, will we therefore have to subtract this VAT from the item? It won’t be added to the amount paid by the buyer?
Thank you
francexpressdeal
·1 year ago@chez_lubi
I had seen your other question, but since I'm not affected by intra-Community VAT, I don't have the answer.
Maybe another contributor will have it.
chez_lubi
OP1 year agoFrom the research I’ve done, especially thanks to ChatGPT which seems to know a lot about the subject, on eBay you can’t tell a French buyer from a European one.
So the price displayed is the public price, that’s the rule.
To sum up, with this VAT obligation in the EU, I did the calculations on an item at €10, and the costs are as follows:
- VAT of around 20% on average in the EU (also applied to shipping costs…)
- eBay fees
- various taxes (URSSAF, income tax) on the total amount (item + shipping costs + eBay fees)
- the item’s cost price
- postage costs (not deductible under micro-enterprise status)
- packaging costs
So for an item at €10 with a cost price of only €3, selling in the EU ends up losing money if you have to pay the VAT of the country in question.
So that’s what I feared; unless you’re selling very expensive items with a very big margin, as a micro-business you have to cut yourself off from sales in the EU once the €10K threshold is reached (which is very low since we’re talking about turnover, so less than €1000 per month).
So I fear the rest of my business will be more than tricky, if not impossible…
There you go…
lingma85
·1 year agoHello @chez_lubi
A microbusiness isn’t suited to online sales...
- shipping costs and other charges are too high, which drags down the entrepreneur’s net income, since they’re included in taxable turnover, with no possibility of deduction.
- Check with an accountant ( and/or calculator ) whether it wouldn’t be more + sensible to turn one’s online microbusiness into a real business with simplified taxation... which would make it possible to deduct all expenses (tax, social security, etc.) and be taxed only on the turnover from selling the items...
Regards
chez_lubi
OP1 year ago—
The VAT exemption threshold is now available throughout the European Union
As mentioned above, this new reform mainly aims to align VAT thresholds in France with those in force in the European Union. Until now, the VAT exemption rules did not apply to other member states.
From January 1, 2025, self-employed workers will be able to benefit from the VAT exemption scheme in other EU member states, provided they do not exceed an annual turnover cap set at the European level of €100,000.
In practice, this will allow you to sell products or services in other European countries while benefiting from VAT exemption.
—
So if I understand correctly, below 100K in total annual revenue, we can once again benefit from VAT exemption in the EU, and the €10K cap on sales in the EU no longer exists, is that right?
Thanks for your help 🙂
otakugamer1337
·5 days agoVAT exemption is handled state by state. You have to be below the threshold in the country in question AND sell for less than €100k across the entire EU, and for a micro-entrepreneur that’s very easy to reach.
you just have to apply for an "EX" VAT number in each country, and it takes 1-2 months each time.
cine-retro-game
·8 months agoself-assessment only concerns transactions between professionals in two different states, a professional seller cannot self-assess VAT with a foreign or French private buyer because the latter does not recover VAT, for me it is therefore up to Ebay to collect the VAT and remit it to the destination state
koalagris
·1 year agoHello @chez_lubi
See this thread:
https://communaute.ebay.fr/t5/Appel-%C3%A0-t%C3%A9moignages/Message-de-restriction-quot-r%C3%A9gime-de-la-franchise-en-base-de/m-p/2951813
= Contact your SIE again.
Best regards