| Discussion Forum: Thread 325199 |
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| | | Author: | sikennedy  | | Posted: | Aug 6, 2022 10:06 | | Subject: | Sales tax distance selling | | Viewed: | 110 times | | Topic: | Taxes | |
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| I am running a store in Luxembourg to sell the bulk of my collection and it’s
taking time because I have 3000plus sets.
My understanding from the tax office and from an accountant is that I do not
have to register because even tho my sales are over 10k I am selling private
lego and I am not a trader. I have never bought to sell or claimed any of my
sets in my store against tax. It’s the same as if I was selling a painting privately.
I have had repeated emails with bricklink but they have limited me to selling
within Luxembourg. What can I do?
I am downsizing so this could become a nightmare for me!any advice appreciated!
Thanks
Simon
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| | | | | Author: | SylvainLS | | Posted: | Aug 6, 2022 11:59 | | Subject: | Re: Sales tax distance selling | | Viewed: | 54 times | | Topic: | Taxes | |
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| In Taxes, sikennedy writes:
| | I am running a store in Luxembourg to sell the bulk of my collection and it’s
taking time because I have 3000plus sets.
My understanding from the tax office and from an accountant is that I do not
have to register because even tho my sales are over 10k I am selling private
lego and I am not a trader. I have never bought to sell or claimed any of my
sets in my store against tax. It’s the same as if I was selling a painting privately.
I have had repeated emails with bricklink but they have limited me to selling
within Luxembourg. What can I do?
I am downsizing so this could become a nightmare for me!any advice appreciated!
Thanks
Simon
|
I look at in this way:
Old Rule: When someone sells something in a EU country (theirs or another EU
country), above a given threshold (per country), they have to be registered and
collect VAT (for that country), whatever their status in other countries.
New Rule, OSS: When someone sells something in other EU countries, above €10k
(total on all EU countries except their own), they have to be registered and
collect VAT for those countries, whatever their domestic status. And the old
rule only applies domestically now.
And if you look at your situation back with only the old rule: if country X had
a threshold of €10k and your country had a threshold of €100k, you wouldn’t have
to be registered in your country but you would have to be in country X if you
sold for more than €10k there.
The new rule is the same… it’s just that ‘country X’ is now ‘all other EU countries
together.’
Also, I don’t know the rules in Luxembourg, but in France, when you sell your
personnal stuff for more than €5k/year, you’re taxed on the added
value at a rate similar to VAT (see what I did with bold?  ). In all
but name, that places you in the same case as a VAT-registered business using
the margin scheme.
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| | | | | | | Author: | OldBrixAndMore | | Posted: | Aug 17, 2022 12:46 | | Subject: | Re: Sales tax distance selling | | Viewed: | 44 times | | Topic: | Taxes | |
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| In Taxes, SylvainLS writes:
| | In Taxes, sikennedy writes:
| | I am running a store in Luxembourg to sell the bulk of my collection and it’s
taking time because I have 3000plus sets.
My understanding from the tax office and from an accountant is that I do not
have to register because even tho my sales are over 10k I am selling private
lego and I am not a trader. I have never bought to sell or claimed any of my
sets in my store against tax. It’s the same as if I was selling a painting privately.
I have had repeated emails with bricklink but they have limited me to selling
within Luxembourg. What can I do?
I am downsizing so this could become a nightmare for me!any advice appreciated!
Thanks
Simon
|
I look at in this way:
Old Rule: When someone sells something in a EU country (theirs or another EU
country), above a given threshold (per country), they have to be registered and
collect VAT (for that country), whatever their status in other countries.
New Rule, OSS: When someone sells something in other EU countries, above €10k
(total on all EU countries except their own), they have to be registered and
collect VAT for those countries, whatever their domestic status. And the old
rule only applies domestically now.
And if you look at your situation back with only the old rule: if country X had
a threshold of €10k and your country had a threshold of €100k, you wouldn’t have
to be registered in your country but you would have to be in country X if you
sold for more than €10k there.
The new rule is the same… it’s just that ‘country X’ is now ‘all other EU countries
together.’
Also, I don’t know the rules in Luxembourg, but in France, when you sell your
personnal stuff for more than €5k/year, you’re taxed on the added
value at a rate similar to VAT (see what I did with bold? ). In all
but name, that places you in the same case as a VAT-registered business using
the margin scheme.
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This is not the complete list:
I am from germany.
If i sell ONLY USED ITEMS (or NEW items bought from private as well) i can sell
500k and also do not have to collect or pay any tax in any country, only the
differerence between buying and selling in germany. But admins might not understand
that special rule.
Cheers
Pierre
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| | | | | | | | | Author: | hpoort | | Posted: | Aug 17, 2022 13:16 | | Subject: | Re: Sales tax distance selling | | Viewed: | 32 times | | Topic: | Taxes | |
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| In Taxes, OldBrixAndMore writes:
| | This is not the complete list:
I am from germany.
If i sell ONLY USED ITEMS (or NEW items bought from private as well) i can sell
500k and also do not have to collect or pay any tax in any country, only the
differerence between buying and selling in germany. But admins might not understand
that special rule.
Cheers
Pierre
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Do you have any reference for this statement? As it contradicts what was said
here before about the applicability of OSS even when you are VAT exempt in your
own country.
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| | | | | | | | | | | Author: | SylvainLS | | Posted: | Aug 17, 2022 13:23 | | Subject: | Re: Sales tax distance selling | | Viewed: | 48 times | | Topic: | Taxes | |
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| In Taxes, hpoort writes:
| | In Taxes, OldBrixAndMore writes:
| | This is not the complete list:
I am from germany.
If i sell ONLY USED ITEMS (or NEW items bought from private as well) i can sell
500k and also do not have to collect or pay any tax in any country, only the
differerence between buying and selling in germany. But admins might not understand
that special rule.
Cheers
Pierre
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Do you have any reference for this statement? As it contradicts what was said
here before about the applicability of OSS even when you are VAT exempt in your
own country.
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As I understand what Pierre says: ‘you do not have to… only [on] the [margin]
in Germany’, he’s under margin-VAT, so not exempt.
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| | | | | | | | | Author: | SylvainLS | | Posted: | Aug 17, 2022 13:17 | | Subject: | Re: Sales tax distance selling | | Viewed: | 29 times | | Topic: | Taxes | |
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| In Taxes, OldBrixAndMore writes:
| | […]
| | Also, I don’t know the rules in Luxembourg, but in France, when you sell your
personnal stuff for more than €5k/year, you’re taxed on the added
value at a rate similar to VAT (see what I did with bold? ). In all
but name, that places you in the same case as a VAT-registered business using
the margin scheme.
|
This is not the complete list:
I am from germany.
If i sell ONLY USED ITEMS (or NEW items bought from private as well) i can sell
500k and also do not have to collect or pay any tax in any country, only the
differerence between buying and selling in germany. But admins might not understand
that special rule.
|
That’s the “margin VAT scheme”: you are a business and pay VAT on the margin
(difference between costs and earnings). And your sales don’t count for the
€10k OSS limit.
I forgot to re-explain the last bit (that margin-VAT sales don’t count for OSS)
because there’s been many threads about it here but it’s what I meant in the
last paragraph.
To explain better:
1. Either you’re under the limit for declaring anything domestically (€5k/y in
France), and you generally don’t risk reaching the €10k limit for OSS. (Apparently
not OP’s case.)
2. Or you’re over the domestic limit to declare and you’ll need to choose
between:
a. declaring and paying taxes that are, oh coincidence, the same as VAT on
the margin, and, as you’re not officially using margin-VAT, your sales count
for the €10k OSS limit,
and b. becoming a business that uses margin-VAT, pay VAT on the margin, and
your sales don’t count for the €10k OSS limit.
So my advice to OP was: check if becoming a margin-VAT businness would solve
your problems.
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| | | | | | | | | | | Author: | OldBrixAndMore | | Posted: | Aug 19, 2022 03:25 | | Subject: | Re: Sales tax distance selling | | Viewed: | 50 times | | Topic: | Taxes | |
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| In Taxes, SylvainLS writes:
| | In Taxes, OldBrixAndMore writes:
| | […]
| | Also, I don’t know the rules in Luxembourg, but in France, when you sell your
personnal stuff for more than €5k/year, you’re taxed on the added
value at a rate similar to VAT (see what I did with bold? ). In all
but name, that places you in the same case as a VAT-registered business using
the margin scheme.
|
This is not the complete list:
I am from germany.
If i sell ONLY USED ITEMS (or NEW items bought from private as well) i can sell
500k and also do not have to collect or pay any tax in any country, only the
differerence between buying and selling in germany. But admins might not understand
that special rule.
|
That’s the “margin VAT scheme”: you are a business and pay VAT on the margin
(difference between costs and earnings). And your sales don’t count for the
€10k OSS limit.
I forgot to re-explain the last bit (that margin-VAT sales don’t count for OSS)
because there’s been many threads about it here but it’s what I meant in the
last paragraph.
To explain better:
1. Either you’re under the limit for declaring anything domestically (€5k/y in
France), and you generally don’t risk reaching the €10k limit for OSS. (Apparently
not OP’s case.)
2. Or you’re over the domestic limit to declare and you’ll need to choose
between:
a. declaring and paying taxes that are, oh coincidence, the same as VAT on
the margin, and, as you’re not officially using margin-VAT, your sales count
for the €10k OSS limit,
and b. becoming a business that uses margin-VAT, pay VAT on the margin, and
your sales don’t count for the €10k OSS limit.
So my advice to OP was: check if becoming a margin-VAT businness would solve
your problems.
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But actually it won´t solve the problem within BL as all european orders are
shown including their country´s specific VAT, that is a big problem and BL has
to solve that asap
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Switzerland, Vaud
France, Nouvelle-Aquitaine
Germany, Nordrhein-Westfalen
Netherlands, Groningen