VAT profiles for OSS

SavioryBricks

We just noticed that we have set tax profile (21 %) for all EU countries, but it is not in accordance with the law.

We tried to change the tax to correct rate for every EU country (Czechia - 21 %, Portugal - 23 %, Hungary - 27 %....), but it is not possible with "remove the tax rate from the existing prices..." due the error message "You have more than one tax profile set up as "Remove the tax rate from existing prices". If you need more than one tax profile, you should change them to "Add the tax rate onto the existing prices"."

We do not want to use "US tax profiles".

We think that it will be better to implement all VAT EU profiles via BrickOwl from admin and just make option for use the profiles if the seller is VAT payer via OSS.
Because the VAT is same for all VAT payers in EU.

Actual VAT rates for all EU countries:
LU -17 %
MT -18 %
CY - 19 %
DE - 19 %
RO - 19 %
BG - 20 %
FR - 20 %
AT - 20 %
SK - 20 %
BE - 21 %
CZ - 21 %
NL - 21 %
TV - 21 %
LV - 21 %
ES - 21 %
EE - 22 %
IT - 22 %
SI - 22 %
IE - 23 %
PL - 23 %
PT - 23 %
GR - 24 %
HR - 25 %
DK - 25 %
SE - 25 %
HU - 27 %
FI - 25.5 %

Lawrence

Understood with regards to the suggestion

With your current issue. Usually you would have a "remove" tax profile for CZ Only. And then one tax profile for each EU country that is an "add" profile.


- This means CZ Customers see normal VAT
- Everyone other than CZ has that VAT removed
- Then individual EU countries have their own VAT added back on again

SavioryBricks

Perfect, thanks for the additional information. We changed everything and it works perfectly!

unbrickable

@SavioryBricks thx for the list, what did you do with Zwitserland ?

SavioryBricks

Nothing, it is not EU country, so VAT is 0 % - same as all non-EU country.

unbrickable

@SavioryBricks thx for your quick reply.
So if i understand correctly the following will be true:

I'm going to upload an item with a price of 10 euro's and then an consumer sees the following:

- Netherlands: 10,00 euro including 21% Dutch VAT --> so 8,26 euro excluding VAT
- Germany(oss): 8,26 euro + 19% vat = 9,83 euro including 19% german VAT
- outside EU: 8,26 euro because there is no VAT*


so if i understand it correctly:
The sales price is uploaded including tax then subtracted based on the home country and then added again with the correct tax profile.


@Lawrence for the outside eu buyers it can happen that Brickowl captures the neccessary VAT ? then its added on top of the EX VAT pricing?

Thanks in advance for your answers !

Lawrence

That sounds about right. I don't understand the question directed at me, are you referring to the import tax schemes for NO/UK?

unbrickable

@Lawrence wow thanks for you quick reply !

uhm I will try to clarify my question. if i'm selling for example to Canada or United states does Brickowl collect VAT on those orders and pay them accordingly to the countries ? so if im understanding correctly :

- the sales price is made excluding vat 8,26 euro
- buyer from Canada sees 9,09 euro including 10% local VAT (example percentage not real)

then buyer places order and:
- seller receives 8,26 euro
- Brickowl receives 0,83 euro

so my order can be booked as 0% VAT and Brickowl takes care of the neccessary VAT.

Hope this makes things clear

---------------------------------------------------
second question about USED LEGO items:

how does the buyer see the prices from used LEGO if im uploading a used item of 10 euro.
does an buyer in the whole word see this as 10 euro because no VAT rules are applied?

Lawrence

No, Brick Owl does not collect any taxes for US/CA. We only collect import taxes for UK/NO and EU(IOSS)

Used is not handled differently, unless you deselect "tax used" in the tax profile. In which case the tax profile just ignores any used items

unbrickable

@Lawrence thanks that clears things up.

For others make sure you have your home count on remove and other country selected as ADD otherwise the prices will be messed up.

unbrickable

@Lawrence two follow up questions:

3: As far as i know the margin scheme doesn't apply outside of Europe so 0% VAT.
Would it be possible to make an remove scheme specific for used lego for buyers outside europe ?

2: The price information in the catalog is this based on excluding vat or including VAT?

Lawrence

2: I don't know, probably a bit of both

3: Could you explain this a bit more

unbrickable

@Lawrence

lol my numbering when not quite alright XD...


3: Ofcouse, if you go for example to 3004 black and you click on price history.
An overview opens with infomation about the current prices and the price history of that item.

I'm curious how the prices are displayed to users. Are they the same whether i view them here in the netherlands or australia?
on what grounds are the prices based, so are they displayed without VAT or including VAT or mixed depending on unkown factors?

To futher elaborate on this, take as example, the prices and 6 months average price is 0,06 euro a piece.
I guess this is the average sales price the buyer pays at checkout (total value / total amount).

Based on this i would assume the prices displayed are including VAT.
But not neccessarly with import taxes (IOSS).

i'm basically searching how the prices are composed?
salesprice = item price + VAT
salesprice = item price


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For the other question, is the main question, if brickowl tax options support the following scheme:

- NL remove 21% VAT from prices but NOT for USED items
- DE add 19% VAT but NOT for USED items (and all other eu countries)
- buyer outside european union remove 21% VAT only from USED items

Depending on the rules the buyer needs to pay VAT on those goods on import.
This would result in double VAT for those counties is would seem most fair way to do this.

Lawrence

Regarding used

- NL remove 21% VAT from prices but NOT for USED items
Yes, just deselect "tax used"
- DE add 19% VAT but NOT for USED items (and all other eu countries)
Yes, just deselect "tax used"
- buyer outside european union remove 21% VAT only from USED items
No. The used prices is not changed for any country if the tax profiles are set to ignore used items.


With the price guide, it's probably a bit of both depending on how stores have their tax profiles set up. It's based on the final price a customer pays for an item.

unbrickable

@Lawrence thanks for your response that clear things up for both points.

unbrickable

@Lawrence I was still busy with implementing certain pieces of our accounting system and a new question arose.
Does Brickowl has any support for bussines (B2B) transactions like ICP orders or needs that to be handled off platform?

Lawrence

I don't know what ICP is. But yes you can do B2B without tax. You can add tax exemptions for users in your tax settings