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Non-EU buyer, EU-based shipping address: VAT-applicability not correctly handled by BrickOwl?
Hi all,
today I received an order from a Non-EU BrickOwl member, so the invoice send by BrickOwl didn't contain VAT. However, he selected a shipping address in the Netherlands. According to EU tax laws I (as a VAT-registered business) am obliged to charge the normal VAT unless I can proof the items have left the EU. Normally this can be profen with shipping documents, but with a delivery address in the EU, those documents are not available (my paper trail ends at the delivery address).
For this high value order I might need to take the hit on the VAT myself (21% of total value) or just cancel the order.
Since BrickOwl has no option (as far as I know) to prevent a non-EU buyer to use an EU-based shipping address, I'm wondering how others would handle this situation and if there is a setting to prevent it from happening again.
@Lawrence: the settings for who is charged VAT on BrickOwl might need an update to prevent situations like this. At the moment only the country where the BrickOwl account is registered is considered. For EU-based VAT-registered sellers, also the country (EU / non-EU) in the shipping address is important to determine if VAT should be charged, otherwise they can not comply with tax law.
Niels
today I received an order from a Non-EU BrickOwl member, so the invoice send by BrickOwl didn't contain VAT. However, he selected a shipping address in the Netherlands. According to EU tax laws I (as a VAT-registered business) am obliged to charge the normal VAT unless I can proof the items have left the EU. Normally this can be profen with shipping documents, but with a delivery address in the EU, those documents are not available (my paper trail ends at the delivery address).
For this high value order I might need to take the hit on the VAT myself (21% of total value) or just cancel the order.
Since BrickOwl has no option (as far as I know) to prevent a non-EU buyer to use an EU-based shipping address, I'm wondering how others would handle this situation and if there is a setting to prevent it from happening again.
@Lawrence: the settings for who is charged VAT on BrickOwl might need an update to prevent situations like this. At the moment only the country where the BrickOwl account is registered is considered. For EU-based VAT-registered sellers, also the country (EU / non-EU) in the shipping address is important to determine if VAT should be charged, otherwise they can not comply with tax law.
Niels
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