How will the new VAT rules in the European Union effective 1 July 2021 impact me?
- The local distance selling thresholds for sales to consumers within the European Union (EU) will be removed. VAT on sales to consumers within the EU must be paid in the consumer’s home country (the only exception being certain small businesses which stay below turnover thresholds).
- The VAT exemptions for imports of low value goods into the EU will be removed. All imports of commercial goods into the EU will now be subject to VAT.
- Most importantly, marketplaces will now be responsible for the VAT collection on certain sales to consumers within the EU.
How is VAT charged on transactions in the European Union?
For VAT purposes, StockX has changed to an undisclosed agent model, whereby StockX acts as an agent facilitating transactions between Buyers and Sellers (i.e. Sellers sell their items to StockX and StockX sells the item to the Buyers). StockX then assumes the responsibility to collect and remit VAT payments. This impacts the way VAT is charged on the transaction and how invoices are issued, but it does not impact the legal relationships in the transaction, which are defined in our
Terms and Conditions of Use.
As a Buyer, how am I affected?
For VAT purposes, when you buy items on StockX they will now be considered a purchase from us as a seller. You do not have to do anything. However, if you have a valid VAT identification number in the EU and you buy items as a business using this number, then please make sure to communicate this VAT identification number to us, as you may stand to benefit from new guidelines. To learn more about how registering for a VAT ID may benefit you, please check out our blog post on the subject. You can enter your VAT ID number in the
Account Settings page.
I am a Buyer outside the European Union, how does this affect me?
No VAT will be applied by StockX. If the item is shipped from our Verification Centers in the Netherlands or Germany, then the sale to you is considered an export sale of goods subject to zero-rating. The tax and customs treatment of the arrival of the goods in the country of destination will follow the
Terms and Conditions of Use.
As a Seller, how am I affected?
For European Union VAT purposes you sell your items to StockX. The new VAT rules outlined above have no impact on this. However, if you have a valid VAT identification number in the EU and you sell items as a business using this number, then please make sure to communicate this VAT identification number to us, as you may stand to benefit from new guidelines. To learn more about how registering for a VAT ID may benefit you, please check out our blog post on the subject. You can enter your VAT ID number in the
Account Settings page.
I am a Seller outside the European Union. Does this affect me?
No VAT will be applied to your sale. If your item needs to be imported into the European Union, StockX will self-account for VAT on the import and will be responsible for the item’s customs clearance.
I am a Buyer inside the EU running a VAT registered business. Why should I share my VAT ID number with StockX?
As a VAT registered business, you will NOT be charged if your identification number matches your shipping address and billing details. If you do not share a valid VAT identification number with us, then you will be charged the VAT in the country of your shipping address.
I am a Buyer inside the European Union running a VAT registered business. How am I affected?
If you have shared a valid VAT identification number with us, then the following applies:
- If your shipping and billing address is in the Netherlands, then the StockX’ sale to you will be subject to the Reverse Charge Mechanism. This is because while the item is shipped from StockX’ Verification Center in the Netherlands, StockX LLC is a US company located outside the country. Therefore, you as a Buyer need to self-account for VAT on this domestic sale under the Reverse Charge Mechanism, in accordance with article 12, paragraph 3, Dutch VAT Act (‘Wet op de Omzetbelasting 1968’). You must pay and remit this VAT to the Tax authorities through your own VAT return. StockX is not responsible for this and will not pay this on your behalf. We will issue an invoice to you without VAT and referencing the Reverse Charge Mechanism and your VAT identification number.
- If your shipping address is in another European Union country (not the Netherlands), then the StockX’ sale to you is an intra-EU sale of goods subject to zero-rating in either the Netherlands or Germany (based on the Verification Center location from which your item was shipped). You should report an intra-EU acquisition of goods in the EU country of your shipping address. StockX will include this sale in its EC Sales List based on the VAT identification number provided by you. StockX will issue an invoice to you without VAT and referencing an intra-EU sale of goods subject to zero-rating and your VAT identification number.
I am a Seller inside the European Union running a VAT registered business. Why should I communicate my VAT ID number to StockX?
StockX will create an invoice for your sales transactions in your name and on your behalf (Self-Billing). The invoice will include the appropriate VAT treatment of your sales.
I am a Seller inside the EU running a VAT registered business. How am I affected?
- If you are a VAT taxable person and you ship the item from the Netherlands (your address) to our Verification Center in the Netherlands (per the shipping label), then you must apply 21% VAT to your sale. StockX is acting as an undisclosed agent in the sale between you and the Buyer. For EU VAT purposes, this means you are deemed to sell the item to StockX. Therefore, where you ship the item from an address in the Netherlands to our Verification Center in the Netherlands, you make a domestic supply of goods to StockX within the Netherlands. StockX will create an invoice issued to StockX in your name and on your behalf. This invoice includes the VAT amount on your domestic supply of goods to StockX in the Netherlands. You should pay and remit this VAT to the Dutch Tax authorities through your own VAT return. StockX is not responsible for this and will not do this on your behalf. StockX will only add output VAT to your final payout and invoices if you have provided us with a shipping address in the Netherlands and a valid Dutch VAT identification number.
- If you ship the item from another EU country (than the Netherlands), then your sale will be exempt from VAT (with the right to claim input VAT credits) or zero-rated (depending on the country where you are based). StockX will self-account for VAT on this transaction in either the Netherlands or Germany (depending on which Verification Center receives your goods). StockX will create an invoice issued to StockX in your name and on your behalf (see FAQ Self-Billing). This invoice does not include VAT but shows a VAT exempt / zero-rated sale and StockX’ VAT identification number. You should report this transaction in your local VAT return and EC Sales List by reference to StockX’ VAT identification number in the Netherlands. This VAT identification number is referenced on the Self-Billing invoice that StockX has created in your name and on your behalf.
I am a Seller located inside the European Union. How are my invoices issued to StockX?
- I am a VAT taxable person located inside the EU
- You are required to issue an invoice for VAT purposes to StockX for the items you sell on our live marketplace based on the requirements and regulations of your local government (the country in your shipping address). StockX will create an invoice in your name and on your behalf (Self-Billing). The Self-Billing agreement between us, including the ongoing invoice acceptance procedure, is laid down in the Terms and Conditions of Use. We will provide you with a copy of the invoice you issue to us for the sale of items. You can find your invoices in your Seller history tab.
- I am located inside the European Union, but am not VAT registered
- You are not required to issue an invoice for VAT purposes to StockX for the items you sell on our live marketplace. StockX will still create an invoice document for you to confirm the sales you have made on our live marketplace.
- I am located outside the European Union
- You are not required to issue an invoice for EU VAT purposes to StockX for the items you sell on our live marketplace. There may be such a requirement for local VAT, GST, sales tax, or equivalent transaction tax purposes in the country where you ship the items from. StockX will not create a document for you that meets any local invoice requirements.However, StockX will still create an invoice document for you to confirm the sales you have made on our live marketplace.
What is the Reverse Charge Mechanism?
Reverse Charge Mechanism refers to the situation where buyers must self-account for VAT on their purchases, instead of the seller. The buyer must then pay and report the VAT to the Tax authorities, instead of the supplier. This mechanism applies to specific transactions where the recipient of the supply is a VAT taxable person. If you are buying goods on our live marketplace, then the Reverse Charge Mechanism applies in the specific scenario outlined below (which may be updated from time to time).
- If you are a Buyer with a shipping and billing address in the Netherlands and you have communicated your Dutch VAT ID to us, then our sales to you shipped from our Verification Center in the Netherlands are subject to the Reverse Charge Mechanism. Dutch VAT is due on those domestic sales within the Netherlands. However, StockX LLC (the seller of the goods) is not located in the Netherlands for VAT purposes. Since you are a VAT taxable person located in the Netherlands, you must self-account for Dutch VAT on these domestic sales of goods under the Reverse Charge Mechanism, in accordance with article 12, paragraph 3, Dutch VAT Act (‘Wet op de Omzetbelasting 1968’).
What is a Zero Rating?
VAT taxable supplies are generally subject to the standard VAT rate in the country where those supplies are taxable. However, certain supplies are subject to a reduced VAT rate or zero VAT rate (the rates vary per EU country). Zero-rating may apply to B2B cross-border sales within/from the EU. In some EU countries this is referred to as VAT exempt supplies with the right to claim input VAT credits. It means that while no VAT is charged on the sale, it is still a taxable supply and therefore eligible for claiming input VAT credits. Zero-rating may also apply to specific products which are sold domestically (e.g. children’s shoes) in some countries. If you are selling or buying items on our live marketplace, then the following B2B cross-border transactions may be subject to zero-rating:
- You are a Seller located inside the EU (in other countries than the Netherlands) and have communicated a valid VAT ID to us. Your sales are zero-rated when you ship the goods to our Verification Center in the Netherlands.
- You are a Seller located inside the EU (in other countries than Germany) and have communicated a valid VAT ID to us. Your sales are zero-rated when you ship the goods to our Verification Center in Germany.
- You are a Buyer with a shipping address inside the EU (other than the Netherlands and Germany) and have communicated a valid VAT ID (which matches your shipping address) to us.
- You are a Buyer with a shipping address outside the EU and we ship the items from our Verification Centers in the Netherlands or Germany.
What is Self-Billing?
If you are a VAT taxable person in the EU, you must generally issue VAT compliant invoices for your B2B supplies. If you are located inside the EU and selling items on our live marketplace, you are selling those goods to StockX for EU VAT purposes. This is a B2B transaction. We are creating those invoices for you under a Self-Billing arrangement. In other words, we bill ourselves (in your name and on your behalf) for your supplies to us and we ensure that you have VAT compliant invoices on record. You can export your invoices in your Seller history tab. Self-Billing is allowed under EU VAT, subject to a prior Self-Billing agreement and an ongoing invoice acceptance procedure. The terms of our Self-Billing arrangement are set out in our Terms & Conditions of Use. You will at all times continue to be responsible for VAT compliant invoices to Tax authorities. You are also responsible to store and keep the invoice documents throughout the statutory storage periods yourself.
How do I register for VAT?
If you are selling items on our marketplace, you may be required to register for VAT in the EU country where you are located and/or shipping your items from. This is generally the case if you are running a small business. Please note that this is subject to the specific requirements in the EU country where you are located / shipping your items from. Some EU countries have implemented an annual turnover threshold below which you may not be required to register for VAT, though you may then still be able to register for VAT voluntarily.
In some countries you need to actively apply for such exemptions for small businesses, while you are required to register for VAT by default. You should consult the local Tax authorities or a professional advisor if you seek advice on your specific situation. However, you can find a general overview of small business VAT exemptions on the
EU Commission site (see ‘exemption for small enterprises’). Generally you can register for VAT via an online portal or a paper form. You generally need to provide information and documentation about your business and your activities.